7 Consumer Stocks to Ditch Today

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Consumer spending seems to be on the rise, and unemployment is slowly inching down. However, don’t think for a second that means that all consumer stocks are good investments. While there are indeed some improvements to spending and the broader economy, not all consumer brands are created equal.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, seven consumer stocks look ready to sell.

Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

General Motors (NYSE:GM) is perhaps the most famous American designer and producer of automotive parts. GM stock is down 19% since this time last year. GM stock gets a “D” grade for sales growth, an “F” grade for earnings momentum, and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of GM stock.

Carnival (NYSE:CCL) is a cruise company that operates in North America, Asia, Europe and Australia. CCL has posted a loss of 16% in the last year, compared to a gain of 8% for the Dow Jones in the same time. Carnival stock gets a “D” grade for operating margin growth, a “D” grade for earnings momentum, an “F” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for cash flow. For more information, view my complete analysis of CCL stock.

Sony (NYSE:SNE) is a Japanese manufacturer and retailer of electronic products. SNE stock has dipped 36% in the last 12 months. Sony stock gets a “D” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow, and an “F” grade for return on equity. For more information, view my complete analysis of SNE stock.

Panasonic (NYSE:PC) is another Japanese technology company that makes the list. In the last year, Panasonic stock has posted a significant loss of 25%. PC stock gets a “D” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow, and an “F” grade for return on equity. For more information, view my complete analysis of PC stock.

Kohl’s (NYSE:KSS) owns and operates a chain of family-oriented department stores. KSS has dropped 8% in the last year. Kohl’s stock gets a “D” grade for sales growth, a “D” grade for its ability to exceed the consensus earnings estimate on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of KSS stock.

Walgreen (NYSE:WAG) operates a chain of drug stores and has posted a loss of 12% in the last 12 months. Walgreen stock gets a “D” grade for its ability to exceed the consensus earnings estimate on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of WAG stock.

Archer Daniels Midland (NYSE:ADM) processes oilseeds, corn, wheat, cocoa and other agricultural commodities. Since last March, ADM stock has lost 10%. ADM stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimate on Wall Street, and an “F” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of ADM stock.

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors


Article printed from InvestorPlace Media, https://investorplace.com/2012/03/7-consumer-stocks-to-ditch-gm-ccl-sne-pc-kss-wag-adm/.

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