Consumer Confidence Falls: Can These Consumer Stocks Beat the Trend?

Updated

The consumer confidence index fell to its lowest point since January, 64.9, from 68.7 in April, indicating a decrease in consumer positivity. In general, when the economy is growing at a robust rate, the indicator reads at least 90, according to MarketWatch.

Gas prices have decreased over the past few weeks, but consumers still face a number of difficult factors, including the employment environment, euro concerns, and a slowing stock market.

Membership and research group Conference Board's labor differential subtracts the percentage of respondents who are negative about job availability with the percentage that are positive. The number has not been positive since January 2008, and it reached its lowest since January 2012 -- negative 33.1%, compared to negative 29.7% in April.


The U.S. Labor Department will report on employment for May on Friday, June 1. Economists are expecting non-farm payrolls to rise 168,000 vs. 115,000 in April.

Business section: Investing ideas
The economy is slowing from the encouraging growth it showed in the beginning of the year, and consumers are feeling the brunt of it.

But with all this pessimism going around, we were wondering which consumer good stocks are moving in the other direction. With that in mind, we list below consumer good stocks that are beating the trend: Not only are they rallying above their 20-, 50-, and 200-day moving averages (SMA), they are also showing encouraging DuPont trends (increasingly strong sources of profit).

Do you think they will continue their bullish performance in the midst of the economic conditions?

List sorted by market cap. (Click here to access free, interactive tools to analyze these ideas.)

1. Kimberly-Clark (NYS: KMB) : Engages in the manufacture and marketing of health care products worldwide. Market cap at $31.16B, most recent closing price at $79.68. The stock is currently trading at 0.95% above its 20-Day SMA, 4.25% above its 50-Day SMA, and 11.85% above its 200-Day SMA. MRQ net profit margin at 8.93% vs. 6.96% y/y. MRQ sales/assets at 0.268 vs. 0.252 y/y. MRQ assets/equity at 3.653 vs. 3.679 y/y.

2. Tyson Foods: Engages in the production, distribution, and marketing of chicken, beef, pork, and prepared food products, as well as related allied products worldwide. Market cap at $7.06B, most recent closing price at $19.30. The stock is currently trading at 2.37% above its 20-Day SMA, 3.34% above its 50-Day SMA, and 3.65% above its 200-Day SMA. MRQ net profit margin at 2.01% vs. 1.99% y/y. MRQ sales/assets at 0.74 vs. 0.713 y/y. MRQ assets/equity at 1.891 vs. 1.987 y/y.

3. Dean Foods (NYS: DF) : Operates as a food and beverage company in the United States. Market cap at $2.76B, most recent closing price at $15.19. The stock is currently trading at 11.15% above its 20-Day SMA, 20.89% above its 50-Day SMA, and 42.47% above its 200-Day SMA. MRQ net profit margin at 1.18% vs. 0.83% y/y. MRQ sales/assets at 0.558 vs. 0.385 y/y. MRQ assets/equity at -109.21 vs. 5.051 y/y.

4. Snyder's-Lance (NAS: LNCE) : Engages in the manufacture, marketing, and distribution of various snack food products. Market cap at $1.75B, most recent closing price at $26.20. The stock is currently trading at 1.46% above its 20-Day SMA, 2.95% above its 50-Day SMA, and 18.28% above its 200-Day SMA. MRQ net profit margin at 3.62% vs. 2.79% y/y. MRQ sales/assets at 0.271 vs. 0.266 y/y. MRQ assets/equity at 1.717 vs. 1.746 y/y.

5. Boston Beer (NYS: SAM) : Produces and sells alcohol beverages primarily in the United States, Canada, Europe, Israel, the Caribbean, the Pacific Rim, and Mexico. Market cap at $1.36B, most recent closing price at $106.81. The stock is currently trading at 0.64% above its 20-Day SMA, 3.03% above its 50-Day SMA, and 11.70% above its 200-Day SMA. MRQ net profit margin at 6.61% vs. 3.88% y/y. MRQ sales/assets at 0.408 vs. 0.389 y/y. MRQ assets/equity at 1.419 vs. 1.526 y/y.

6. PH Glatfelter (NYS: GLT) : Manufactures and sells specialty papers and fiber-based engineered materials in the United States and internationally. Market cap at $658.97M, most recent closing price at $15.44. The stock is currently trading at 2.62% above its 20-Day SMA, 0.24% above its 50-Day SMA, and 5.72% above its 200-Day SMA. MRQ net profit margin at 4.73% vs. 4.36% y/y. MRQ sales/assets at 0.345 vs. 0.288 y/y. MRQ assets/equity at 2.231 vs. 2.377 y/y.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


Kapitall's Danny Guttridge does not own any of the shares mentioned above. Data sourced from Finviz and Fidelity.

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