8 Consumer Stocks to Sell in a Soft Market

The "new normal" in spending cuts into profits

   
8 Consumer Stocks to Sell in a Soft Market

Consumer spending isn’t quite what it used to be. While gas prices and unemployment are both edging down, the reality is that many Americans have been forever changed by the financial crisis and there is a “new normal” in their spending habits. That is weighing on a certain group of consumer stocks.

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, I’ve identified eight consumer stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Carnival (NYSE:CCL) is a major cruise company that has posted a loss of 19% since this time last year. Carnival stock gets a “D” grade for operating margin growth, an “F” grade for earnings 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 in my Portfolio Grader tool. For more information, view my complete analysis of CCL stock.

General Motors (NYSE:GM) is an American automotive company that designs, builds and sells cars, trucks and auto parts. In the last 12 months, General Motors stock has dipped 31%, compared to gains by the broader markets. GM stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth and a “D” grade for the magnitude in which earnings projections have increased over the past months in my Portfolio Grader tool. For more information, view my complete analysis of GM stock.

Honda (NYSE:HMC) is a Japanese auto manufacturer. In the last year, Honda stock is down 12%. HMC stock gets an “F” grade for sales growth, an “F” grade for operating margin growth, a “D” grade for earnings growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “F” grade for cash flow and a “D” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HMC stock.

Kellogg (NYSE:K) is a famous manufacturer and marketer of ready-to-eat cereal and convenience foods. Since May of 2011, K stock has dropped 12%. Kellogg stock gets a “D” grade for sales growth, a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude in which earnings projections have increased over the past months in my Portfolio Grader tool. For more information, view my complete analysis of K stock.

Kroger (NYSE:KR) operates 2,435 supermarkets and multi-department stores in the U.S. Since last May, Kroger stock has posted a loss of 11%, compared to gains by the broader markets. KR stock gets an “F” grade for operating margin growth, an “F” grade for earnings growth and an “F” grade for earnings momentum in my Portfolio Grader tool. For more information, view my complete analysis of KR stock.

Panasonic (NYSE:PC) is a Japanese electronics manufacturer that has watched its stock value dip 20% in the last 12 months. Panasonic stock gets an “F” grade for sales growth, “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 in my Portfolio Grader tool. For more information, view my complete analysis of PC stock.

Sony (NYSE:SNE) is another Japanese electronics company that makes the list. In the past 12 months, SNE stock has posted a significant loss of 48%. Sony stock gets a “D” grade for sales growth, “F” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, a “D” 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 in my Portfolio Grader tool. For more information, view my complete analysis of SNE stock.

Walgreen (NYSE:WAG) operates a drugstore chain in the United States. WAG rounds out the list with a yearly loss of 30%. Walgreen stock gets a “D” grade for sales growth, a “D” grade for earnings momentum and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of WAG stock.


 


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/8-consumer-stocks-to-sell-ccl-gm-hmc-k-kr-pc/.

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