01-07-2016, 02:33 PM
(01-07-2016, 01:25 PM)Kerim Wrote: Are there any bright spots among the core consumer staples? Among the ones I follow, the lowest P/Es are 25, and I'm not really excited to buy at those prices.
In my scoring system, the highest-scoring consumer staple is CL, with a score of 59 out of 100. I put MKC and PEP in roughly the same tier as CL.
KO, CLX, DPS, PG are a rung down, in my opinion.
And GIS, K, and HSY are in the basement for me. (I still don't understand all the love for HSY, with its P/E in the 30s. Though I'd like to be converted.)
I want to add to my safest, core positions, but not at these prices. Are there any reasonably priced consumer staples out there at the moment?
(I suppose folks can argue about whether the tobacco companies are consumer staples. If you include them, MO would be my highest-ranked stock. But I already have a ton of it!)
I haven't updated analyst estimates on my watch list recently so this is going off of numbers from a couple of months ago, but here are the ones I'd say are trading at the most reasonable valuations.
ADM, CVS, FLO, HSY, MJN, WBA.
I think your numbers for HSY are off, they aren't trading anywhere near a high 30's multiple. Analysts are estimating $4.10 in EPS for 2015 and $4.40 for 2016, which gives a PE range of 19.5-20.9 at the current share price.