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

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).

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 PLC2,543.50 GBP0.00
Britvic PLC831.50 GBP0.00
City of London Ord329.53 GBP0.93
Coca-Cola Co47.72 USD0.00
Colgate-Palmolive Co76.65 USD0.00
Diageo PLC2,568.00 GBP0.00
General Mills Inc63.75 USD0.00
Guinness Global Equity Income Y GBP Acc16.77 GBP0.24
Imperial Brands PLC1,262.50 GBP0.00
Invesco Global Opportunities UK Z Acc623.11 GBP-1.41
Japan Tobacco Inc1,987.00 JPY0.00
Kellogg Co69.02 USD0.00
L'Oreal SA276.00 EUR0.00
M&G Global Dividend GBP I Acc326.48 GBP0.60
Mid Wynd International Inv Tr PLC O Inc636.00 GBP-0.16
Nestle SA107.90 CHF0.00
Philip Morris International Inc78.37 USD0.00
Procter & Gamble Co134.10 USD0.00
Reckitt Benckiser Group PLC7,498.00 GBP0.00
The Kraft Heinz Co34.79 USD0.00
Walmart Inc131.88 USD0.00
Whitbread PLC2,447.00 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