Seeking bargains in a lagging sector

Wednesday, September 13, 2017

What are we looking for?
U.S. consumer non-cyclical stocks with strong earnings, low debt and reasonable valuations. The S&P 500 is up about 10 per cent since the start of the year, capping an eight-year run of strong performance. For much of 2017, consumer non-cyclical companies such as household products and food and beverage makers have lagged the broader market. In fact, this sector had the worst performance of all U.S. sectors over the past month. With many of these non-cyclical companies also deemed to be defensive, one might wonder whether they now represent good value, in light of the lofty valuations in the U.S. market.
 
The screen
We will be using Recognia Strategy Builder to search for well-valued U.S. non-cyclical consumer stocks. We begin by setting a minimum market capitalization threshold of $10-billion (U.S.) ... Read the full article here.