Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact email@example.com.
SOURCE Zacks Investment Research, Inc.
CHICAGO, Feb. 19, 2014 /PRNewswire/ -- Today, Zacks Equity Research discusses the Consumer Staples, including Procter & Gamble (NYSE:PG-Free Report), Molson Coors Brewing Co (NYSE:TAP-Free Report), Kellogg Company (NYSE:K-Free Report), General Mills Inc (NYSE:GIS-Free Report) and Kimberly-Clark Corp (NYSE:KMB-Free Report).
Industry: Consumer Staples
The operating backdrop for the consumer staples sector was more or less weak in 2013, as it was in 2012 due to a difficult consumer spending environment. Middle-class consumers have struggled to cope with rising gas prices, delayed income tax refunds and higher payroll taxes. In addition, difficult operating conditions in Europe and a slowdown in some Asian countries, like China, also weighed on the sector's outlook. Consumer staple stocks have also underperformed the S&P 500 as a whole in the past one year.
Unlike discretionary items, demand for consumer staples remain relatively stable across the economic cycle. But consumer staple companies are witnessing sluggish growth in the developed markets, due to market saturation, which along with consumers' stagnant disposable incomes and increased competitive activities have added to the companies' woes.
Thus, many of the companies have been looking to the faster growing emerging markets. That's a good strategy in the long run, but the near-term outlook for many of these markets remains uncertain. The ongoing emerging currency turmoil is particularly problematic, as a stronger dollar reduces the value of outside-U.S. sales and in turn limits growth.
This uncertain macro environment is a big reason why many companies in the sector have lowered guidance for 2014. With top-line growth hard to come by, many companies have been focused on cost controls, acquisitions and share buybacks.
In a crowded and competitive space, consumer product companies need to regularly innovate and upgrade their brands to create differentiated value propositions for their customers and to remain successful.
For the consumer product giant Procter & Gamble (NYSE:PG-Free Report), innovation has been a strong tradition and the company has introduced many new products in most of its categories. While global brewer Molson Coors Brewing Co (NYSE:TAP-Free Report) plans to bring new variety in brands like Coors Light, Carling, Staropramen and Blue Moon to drive top line growth, cereal makers Kellogg Company (NYSE:K-Free Report) and General Mills Inc (NYSE:GIS-Free Report) plans to roll out more nutritious products in 2014. Consumer products giant Kimberly-Clark Corp's (NYSE:KMB-Free Report) innovation would include diaper and feminine care upgrades in Brazil, China and Russia. The company also has an innovative pipeline in North America that includes activity on Huggies diapers and baby wipes, the GoodNites youth pants, Depend briefs and Viva towels.
The companies are also shifting focus to make healthier and nutritious products in view of increasing health consciousness and rising obesity concerns and growing regulatory pressures.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
©2012 PR Newswire. All Rights Reserved.