As gold and oil hit new highs on Friday, investors are clearly feeling a little shaky. Though the stock market has had a good run since September, many feel like the rally may be running out of gas – and that now may be the time to consider selling some of your underperformers before they go from bad to worse.
To help you clean house, here are 8 famous consumer brands that haven’t been kind to investors lately and should be sold ASAP:
Wal-Mart Stores Inc: International retail giant Wal-Mart (NYSE: WMT) has watched its stock price decline -8% since the end of January, and -5% over the past 12 months. Wal-Mart may be a consumer staple and a market heavyweight with its $185 billion market cap, but with its poor performance in 2011 so far, this stock is anything but a good buy.
Procter & Gamble Co: Known for brands like Bounty paper towels, Crest toothpaste, Gillette razors and Mr. Clean cleansers, Procter & Gamble (NYSE: PG) is a mainstay of most households. But Procter & Gamble hasn’t been kind to investors this year. Since late January, PG stock has dropped -7% and the consumer staple is down -2% in the last year. With revenue essentially flat from 2009 to 2010, I’m not optimistic that 2011 will hold much growth either for this sluggish company.
Toyota Motor Corp.: Japanese auto manufacturer Toyota (NYSE: TM) has watched the value of its stock drop -4% in the last year, compared to gains of +13% and +12% for the Dow Jones and S&P 500, respectively. TM stock has also dropped -17% since mid-February. Earnings wise, analysts are projecting EPS of just 54 cents, compared to $1.09 this quarter last year. Stay away from this stock until the Japanese market stabilizes.
PepsiCo Inc: Global food, snack and beverage company PepsiCo (NYSE: PEP) has experienced a stock slide of -2% in the last three months. While it’s product Pepsi may be a global icon, PEP stock has been extremely volatile all year, and is down -1% in the last 12 months. Finally, analysts are projecting a three cent slip in earnings this quarter, compared to last year, showing now is not the time to drink up Pepsi.
CVS Caremark Corp: Operating more than 7,000 retail pharmacy retail stores CVS Caremark Corp (NYSE: CVS) has not had a particularly thrilling year. In the last 12 months, CVS has bounced up and down, but has shown less than 1% growth. Looking at CVS earnings, experts expect a 5 cent drop this quarter compared to last year’s EPS.
Colgate-Palmolive Co: The products of Colgate-Palmolive (NYSE: CL) may be found in cabinets spanning 200 countries worldwide, but its stock should not be found in your portfolio. While busy selling deodorants, soaps and toothpastes, CL has also been watching its stock value dip -4% in the last year. Experts are predicting a five cent drop in EPS this quarter compared to last year.
Nike Inc.: Sports footwear, apparel and equipment powerhouse Nike (NYSE: NKE) has experienced a sizable decline of -13% in the last month and -6% in the last three months. Those investors who held NKE stock on March 17 were in for a bad surprise when the stock dropped -9% in just one day! Don’t think Nike is a bargain – sell this stock now before it drops farther.
Target Corp: Rounding out the list is general merchandise and food retailer Target (NYSE: TGT). Since the last week of December, TGT stock has fallen -15%. In the longer term, TGT stock is down -6% in the last 12 months.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.