RECENT NEWS
Reuters  4 hrs ago  Comment 
Media company Walt Disney Co's quarterly profit blew past Wall Street expectations, with a muscular performance from its "Captain America" movie, higher attendance at U.S. theme parks and brisk sales of merchandise tied to mega-hit "Frozen."
Wall Street Journal  6 hrs ago  Comment 
Skyrocketing sports-rights costs caught up to ESPN last quarter, providing the sole setback in an otherwise stellar quarter for Walt Disney.
Forbes  8 hrs ago  Comment 
In afternoon trading on Tuesday, Consumer Products stocks are the best performing sector, losing just 0.5%. Within that group, Coach (NYSE: COH) and Archer Daniels Midland (NYSE: ADM) are two of the day's stand-outs, showing a gain of 4.0% and...
The Straits Times  Aug 3  Comment 
August 04, 2014 1:10 AM LAST month, I visited a large Japanese company that has long been a global household name in consumer products.
Wall Street Journal  Aug 2  Comment 
Procter & Gamble, the world's largest consumer products company, is looking to get smaller by shedding more than half its brands.
Forbes  Aug 1  Comment 
Looking at the sectors faring best as of midday Friday, shares of Utilities companies are outperforming other sectors, up 0.7%. Within that group, Exelon (NYSE: EXC) and Edison International (NYSE: EIX) are two of the day's stand-outs, showing a...
New York Times  Aug 1  Comment 
Procter & Gamble, the world’s largest consumer products maker, said it would shed more than half its brands around the globe over the next year or two.
Wall Street Journal  Aug 1  Comment 
Procter & Gamble, the world's largest consumer products company, is looking to get smaller by shedding more than half its brands.
newratings.com  Aug 1  Comment 
LONDON (dpa-AFX) - Consumer products group PZ Cussons Plc (PZC.L) announced the exchange of contracts for the acquisition of Australian food brand Five:am. Five AM Life Pty Ltd.'s entire issued share capital is being purchased for...




 
TOP CONTRIBUTORS

The Toy business leads this category, and by a wide margin. The 3 largest U.S. toymakers, Hasbro (HAS), Mattel (MAT), and JAKKS Pacific (JAKK), were all on the screen for significant periods of time. I think this is another illustration of how the Magic Formula does a lot of the work of digging up beaten down sectors for us. The first quarter is generally a weak one for toymakers, as most of their profits come in the Christmas season (as much as 60%).

The original thought was to separate between Consumer Staples (items that we must buy regardless of our financial condition) and Consumer Discretionary (luxury goods). However, many of the industries above would be ambiguous. For example, we need shoes (making them a staple), but in tight times we may decide to buy a store brand instead of more expensive Nike (NKE), adding a measure of discretion to the purchase. Consumer goods companies can make great long term investments - just ask Warren Buffett, whose investments in Coca-Cola, Anheuser-Busch Companies (BUD), and Procter & Gamble Company (PG) are legendary.

Forces affecting the Retail Industry

Brand is unquestionably the strongest form of competitive advantage in Consumer Goods. However, it's important to also judge the durability of the brand. For example, Coke is a brand known around the world, and has endured over 100 years of competition to still enjoy the top spot in the soda category today. That's a durable brand. Compare this to Gap (GPS).Ten years ago, Gap and it's spin off stores Old Navy and Banana Republic were considered fashionable and chic for the all important teen and college set. Today, the store is avoided by those same groups, lest their fashion sense be ridiculed by friends. That's a fickle brand. It's important to be able to separate a fad from a juggernaut. Add this to the PR problems Mattel faced last year with lead paint, and you have an unwanted sector, with some interesting potential investments.


Distribution is also important in the Consumer Goods sector. A company with a wider distribution network can leverage economies of scale to earn more on their fixed costs. An especially attractive arrangement is when one of these companies has an exclusive deal with a large distributor. Take Anheuser-Busch (BUD), for example. While this firm has an incredibly strong brand, they also require exclusivity from distributors. This allows them to lock out competitors like Molson Coors (TAP) and Miller, protecting profit margins. The soda companies also do this well. Have you noticed that McDonald's (MCD) only sells Coke products, while Pizza Hut (Yum! Brands (YUM)) only sells Pepsi? With these exclusive deals, competitors are blocked from those roads of distribution, protecting profits for the established companies.

Companies in the Consumer Products Industry (346)

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki