ValuEngine Weekly: Consumer Staples Stocks, Valuations, and More

This week, we provide top-five ranked VE data for our Consumer Staples Sector stocks. We also check our valuations in light of the ongoing market turmoil.

NYSE:GCI
NYSE:NUS
NASDAQ:SAFM
NYSE:MED
NYSE:HI

VALUATION WATCH: Overvalued stocks now make up 51.53% of our stocks assigned a valuation and 17.32% of those equities are calculated to be overvalued by 20% or more. Eleven sectors are calculated to be overvalued.

ValuEngine Index Overview

Index Week Open Friday AM Change % Change YTD
DJIA 24076.6 23874.51 -202.09 -0.84% -3.42%
NASDAQ 7016.17 6918.82 -97.3499 -1.39% 0.22%
RUSSELL 2000 1529.14 1508.1 -21.04 -1.38% -1.79%
S&P 500 2633.45 2600.94 -32.51 -1.23% -2.72%

ValuEngine Market Overview

Summary of VE Stock Universe
Stocks Undervalued 51.53%
Stocks Overvalued 48.47%
Stocks Undervalued by 20% 19.96%
Stocks Overvalued by 20% 17.32%

ValuEngine Sector Overview

Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
Aerospace 1.57% 0.87% 6.07% 18.77% overvalued 23.21% 23.07
Computer and Technology 0.09% -0.65% 1.89% 11.85% overvalued 25.28% 31.35
Industrial Products 0.98% 0.24% -0.77% 5.07% overvalued 19.01% 23.45
Consumer Discretionary 0.71% 0.99% -1.50% 4.83% overvalued 17.34% 27.34
Multi-Sector Conglomerates 0.72% 0.45% -3.85% 4.08% overvalued 11.47% 24.19
Business Services 1.18% 1.64% 5.55% 3.78% overvalued 17.63% 23.79
Consumer Staples 0.48% 0.66% -1.71% 3.76% overvalued 13.62% 25.48
Medical 0.52% 0.49% 2.56% 1.91% overvalued 35.77% 28.39
Utilities 0.43% -0.00% -3.86% 1.47% overvalued 2.04% 22.40
Transportation 0.85% 0.36% -3.26% 0.52% overvalued 19.33% 21.00
Finance 0.26% 0.44% -0.98% 0.25% overvalued 9.96% 17.91
Retail-Wholesale 0.59% 0.27% -2.93% 1.20% undervalued 16.31% 24.28
Construction 0.85% 1.02% 1.19% 1.47% undervalued 19.50% 22.97
Auto-Tires-Trucks 1.33% 2.33% -3.90% 3.36% undervalued 19.61% 13.82
Basic Materials 0.99% 0.63% -0.15% 5.57% undervalued -0.23% 24.41
Oils-Energy 1.92% 1.83% -2.04% 13.25% undervalued -2.84% 26.37

 

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Valuations

The ongoing volatility on Wall Street has kept our valuation battle quite lively this week. We now see the undervalued condition holding sway, with 51.83% of the stocks we can assign a valuation calculated to be undervalued.

We thought some issues related to proposed tariffs and a China-US trade war had calmed down a bit and then we saw that positive market response earlier in the week. However, with some unable to “stick to the script” and reassure investors, the market reacted negatively today and–as of this writing–took a big dive.

Threatening tariffs as a bargaining strategy for non-existent–thus far– negotiations on trade remains an incredibly bad idea. This sort of thing can/will destabilize markets. Of even more concern is the fact that those doing the most damage on this front in Washington appear woefully ignorant of how international trade “works”– or even more basic issues (such as how trade deficits are actually calculated.)

Once again, we are reminded that the issue here is not the US economy–which has been on a tear for years now. The main issue–today’s weak jobs report notwithstanding– is the self-inflicted wounds caused by ill-thought out remarks from certain quarters in DC. We hope some self-control can be developed–and soon–in those same quarters so that this remarkable rally can continue.

Sector Talk–Consumer Staples

Below, we present the latest data on Consumer Staples stocks from our Professional Stock Analysis Service. Top- five lists are provided for each category.  We applied some basic liquidity criteria–share price greater than $3 and average daily volume in excess of 100k shares.
Top-Five Consumer Staples Stocks–Short-Term Forecast Returns

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
GCI GANNETT CO INC 9.26 36.53% 13.48%
NUS NU SKIN ENTERP 75.05 38.58% 38.75%
SAFM SANDERSON FARMS 113.53 14.52% 9.51%
MED MEDIFAST INC 96.69 73.13% 121.87%
HI HILLENBRAND INC 46.2 24.68% 31.06%

Top-Five Consumer Staples Stocks–Momentum

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
MED MEDIFAST INC 96.69 73.13% 121.87%
CHEF CHEFS WAREHOUSE 24.2 39.51% 82.64%
OLLI OLLIES BGN OUTL 59.45 N/A 80.97%
EL ESTEE LAUDER 151.48 33.52% 77.71%
BUFF BLUE BUFFALO 39.93 13.15% 71.45%

Top-Five Consumer Staples Stocks–Composite Score

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
TSN TYSON FOODS  A 70.97 -16.88% 14.56%
STZ CONSTELLATN BRD 229.93 7.78% 42.46%
PPC PILGRIMS PRIDE 23.48 -16.44% 4.26%
SAFM SANDERSON FARMS 113.53 14.52% 9.51%
EL ESTEE LAUDER 151.48 33.52% 77.71%

Top-Five Consumer Staples Stocks–Most Overvalued

Ticker Name Mkt Price Valuation (%) Last 12-M Return (%)
MED MEDIFAST INC 96.69 73.13% 121.87%
FRPT FRESHPET INC 16.4 62.35% 49.09%
CHEF CHEFS WAREHOUSE 24.2 39.51% 82.64%
NUS NU SKIN ENTERP 75.05 38.58% 38.75%
GCI GANNETT CO INC 9.26 36.53% 13.48%

 

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