Consumer Staples Sector a "Walking Profit Warning"

JOHCM UK Growth manager tells the Morningstar Investment Conference that there is uncomfortably high leverage among consumer staples stocks

David Brenchley 1 May, 2018 | 4:22PM

Reckitt Benckiser brand Dettol

The consumer staples sector is “a walking profit warning”, Mark Costar, manager of the Morningstar Silver Rated JOHCM UK Growth fund, told the Morningstar Investment Conference on Tuesday.

Interest rates having been at a record low for so long means we’ve seen “capital mis-allocation on a grand scale” by corporates, as they attempt to satiate an investor base that has been starved of yield at the expense of investing in their businesses for the long-term.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,900.00 GBP0.00
Capita PLC40.50 GBP0.00
JOHCM UK Growth GBP A2.80 GBP0.11
Micro Focus International PLC319.40 GBP0.00
Reckitt Benckiser Group PLC7,680.00 GBP0.00
Unilever PLC4,283.00 GBP0.00
WPP PLC603.80 GBP0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies