For a long time now the consumer has had good reason to surrender: higher interest rates, higher oil prices, sluggish economic activity, the psychological and financial impact of the housing slowdown, and so forth. Yet for some reason, that hasn’t been happening. And now, it looks like the cavalry is on the horizon.
Wal-Mart Stores, Inc. (WMT) is lending a helping hand with redcued pricing, a move that may be replicated by some rivals. Whether Sony Corp.’s (6758.T) high-priced, high-feature Playstation 3 will succeed is an open question, but it seems likely at least that its release will help generate a reasonable level of consumer buzz. Oil prices have fallen sharply from recent peaks. And if economic activity remains lackluster, interest rates may soften. Bottom line: the U.S. consumer looks set to keep marching ahead.
It’s not all great news. Starbucks Corp. (SBUX), for example, came out with lower profits. But there’s good news elsewhere, such as at Nike Inc. (N), which sharply boosted its dividend.
When all is said and done, consumer stocks should continue to offer opportunities even in the face of dour headlines here and there. Here are the top 10 stocks from this area currently on Reuters Select screens. (Click here for an explanation of how we rank the stocks on the overall list.)
| Top-ranked Reuters Select newcomers | ||
| Company | Screen(s) | Market Cap. ($ mill.) |
| Sonic Automotive (SAH) | Favored Value Plays, Consensus Choices |
1182.25 |
| Operates auto dealership franchises representing 37 different brands of cars and light trucks, and 38 collision repair centers in 15 states. | ||
| WMS Industries (WMS) | Favored Value Plays, Consensus Choices |
1173.34 |
| Manufactures gaming machines, including gaming machines linked to wide-area progressive jackpot systems (WAP), local-area progressive (LAP) jackpot systems and non-linked, stand-alone gaming machines, and video lottery terminals (VLTs). Some of its games use licensed brands, such as MONOPOLY, HOLLYWOOD SQUARES MEN IN BLACK, WORLD SERIES OF POKER and POWERBALL. | ||
| RC2 Corporation (RCRC) | Favored Value Plays, Consensus Choices |
945.5 |
| Makes toys, collectibles, hobby and infant care products. Infant and preschool brands include Learning Curve and Lamaze, and licensed properties, such as Thomas & Friends, Bob the Builder, Winnie the Pooh, John Deere and Sesame Street. Collectibles brands include Johnny Lightning, Racing Champions, Ertl, Ertl Collectibles, AMT, Press Pass, JoyRide and JoyRide Studios. | ||
| Yum! Brands (YUM) | Rising Expectations | 16469.2 |
| Quick service restaurants: KFC, Pizza Hut, Taco Bell, Long John Silver’s (LJS) and A&W All-American Food Restaurants (A&W), YUM Restaurants International (YRI or International Division) and YUM Restaurants China (China Division). | ||
| Coldwater Creek (CWTR) | Relative Growth, GARP, High P/E Ratios |
2808.61 |
| Retailer of women’s apparel, accessories, jewelry and gift items. Company brand offers relaxed and casual lifestyle; fashionable but not trendy, and designed to appeal to women who are 35 years and older with average household income in excess of $75,000. | ||
| Hibbett Sporting Goods (HIBB) | Favored Value Plays | 965.84 |
| Operator of sporting goods retail stores in small to mid-sized markets predominately in the Sunbelt, Mid-Atlantic and Midwest. | ||
| Smith & Wesson Holding (SWHC) | Sales Growth Leaders, Lesser Known Stocks |
485.91 |
| Manufactures revolvers, pistols, and related products and accessories for sale primarily to gun enthusiasts, collectors, hunters, sportsmen, protection focused individuals, public safety agencies and officers, and military agencies in the United States and throughout the world. It also markets tactical rifles. | ||
| Kona Grill (KONA) | Relative Momentum, Rising Expectations, Sales Growth Leaders, Insider Buying |
112.69 |
| Restaurants featuring a diverse selection of mainstream American dishes with a flavorful twist, as well as a variety of appetizers and entrees with an international influence, including a selection of sushi items. | ||
| Books-A-Million (BAMM) | Relative Values, Lesser Known Stocks |
364.54 |
| Book retailer in the Southeastern United States. Company operates both superstores and traditional bookstores. | ||
| CKE Restaurants (CKR) | Favored Value Plays | 1324.66 |
| Quick-service and fast-casual restaurants (QSRs), primarily under the brand names Carl’s Jr., Hardee’s and La Salsa Fresh Mexican Grill (La Salsa). Carl’s Jr. restaurants are located in the Western United States. CKE’s Hardee’s restaurants are located in the Southeastern and Midwestern United States. La Salsa restaurants are located in California. | ||
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Marc - is Smith and Wesson really regarded as a ‘consumer stock’? Is this spin or reality? Their web site seems to place them as law enforcement. Is there a consumer equivalent making bullet proof vests?
- Posted by Nic Fulton