Consumer Stocks Slump Creates Value Opportunities

Consumer staples stocks have been one of the "great disasters" of 2018, but that's led to compelling valuations in certain areas, fund managers tell us

David Brenchley 8 October, 2018 | 8:23AM
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cigarettes, consumer staples, stocks, British American Tobacco

Consumer staples stocks are oft known as ‘defensive’ investments, popular in times of stock  market uncertainty. Historically, these companies, which produce or sell products that are always in demand, have served investors well, with growing, secure and reliable dividends.

But in the past 12-18 months, that defensive status has come under threat. “Consumer staples companies have been one of the great disasters of this year,” claims Simon Edelsten, manager of Morningstar Silver Rated Mid Wynd International (MWY).

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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,580.00 GBP0.00Rating
Britvic PLC899.00 GBP0.00
City of London Ord387.50 GBP0.26Rating
Coca-Cola Co54.15 USD0.00Rating
Colgate-Palmolive Co74.78 USD0.00Rating
Diageo PLC3,606.50 GBP0.00Rating
General Mills Inc61.69 USD0.00Rating
Guinness Global Equity Income Y GBP Acc20.58 GBP-0.21Rating
Imperial Brands PLC1,558.00 GBP0.00Rating
Invesco Global Focus UK Z (Acc)789.24 GBP0.49Rating
Japan Tobacco Inc2,282.00 JPY0.00Rating
Kellogg Co61.50 USD0.00Rating
L'Oreal SA362.55 EUR0.00Rating
M&G Global Dividend GBP I Acc425.62 GBP-0.53Rating
Mid Wynd International Inv Tr Ord776.05 GBP-0.76Rating
Nestle SA112.96 CHF0.00Rating
Philip Morris International Inc95.79 USD0.00Rating
Procter & Gamble Co140.66 USD0.00Rating
Reckitt Benckiser Group PLC5,391.00 GBP0.00Rating
The Kraft Heinz Co36.81 USD0.00Rating
Walmart Inc144.69 USD0.00Rating
Whitbread PLC3,290.00 GBP0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk