The consumer goods industry is one of the most dynamic sectors on any economy. Even in the stock market, the consumer goods stocks move faster than the others. Investors looking to buy these stocks need to have an extensive knowledge of the market trends and the stock options. This knowledge will help them in making better decisions leading to safer investments and better returns. The market trends for this sector are constantly changing and require a proactive approach and a good instinct. An in-depth analysis of the stock options and the indicators has to be done for more effective decisions. The five consumer goods stocks to consider here are:
AptarGroup Inc. (ATR): This stock is currently trading at a price above $52 per share. A downward trend has been predicted in the stock prices since the last quarter. The 52-week trading range for this stock is $42 to $55 approximately. The market capitalization at this price is close to $3 billion. Earnings per share (EPS) are currently $2.69 and the dividend yield is close to $2. The stock has a price-to-earnings (P/E) ratio of up to 19.5. Beta for this stock is 0.75 in the current market scenario. This means that the risk associated with investing in this stock is relatively lower. This stock is said to be one of the attractive options which has been bought recently by insiders. The Aptar Group CEO has discussed the results of the previous quarter and is now working on trying to improve the financials of the company further. This stock could therefore, be a good option to consider while investing in the consumer goods stocks. The future looks brighter with chances of an overall growth in the economy. I believe it is a viable option to buy this stock for income and growth.
Pithey Bowes Inc (PBI): The stock is currently trading at close to $19 per share with a high probability that the price might increase. This price falls in between the high and low prices in the 52-week trading range of $17 to $26 approximately. The market capitalization of the stock at the current price is nearly $4 billion. Earnings per share are $1.85 and the dividend yield is more than 8%. Price-to-earnings (P/E) ratio for this stock is close to 10. The beta for the stock is 1.02 and a rating of 9 out of 10 has been given to this stock by industry experts. This means that it is not a risky investment and offers impressive returns as well. It is also considered to be one of the 4 high yield dividend stocks to buy. It is also one of the 6 undervalued dividend stocks which offer average yields of 12%. I believe that this stock is worth considering when buying consumer goods stocks because of its lower risk and higher returns. It will definitely help in building a diversified portfolio and minimizing the risk factors while doing so.
Sonoco Products Co (SON): The current trading price of this stock is close to $33 per share. It was predicted that the prices might fall once they exceeded the $32 mark but they have been seen to increase steadily. The 52-week trading range for this stock's prices is between $26 and $37 approximately. At the current share price, the market capitalization is more than $3 billion. Earnings per share for the stock are $2.13 and the dividend yield is close to 4%. Price-to-earnings (P/E) ratio for this consumer goods stock is approximately 15.3. The beta is 0.98 which is a positive indicator and the debt-to-equity ratio is 0.90. Industry experts and analysts have given it a rating of 8 out of 10. In this quarter, the stock has been rated as one of the options which offer high returns and earnings for investors. In my opinion, it would be a viable option to buy this stock as it depicts positive growth trends. As the market evolves and stabilizes, it is highly likely that capital gains can be achieved.
Sealed Air Corp (SEE): This stock is currently trading in the market at a price above $19 per share. Some experts and analysts believe that the price will remain unchanged while others feel it will fall. The 52-week trading range for the stock is between prices of $15 and somewhere above $28. Market capitalization at this price is nearly $4 billion and the earnings per share are $0.78. The dividend yield is close to3% with a price-to-earnings (P/E) ratio of close to 25. The beta for this stock is 1.34 which is why it has also been given a rating of 7 out of 10. It is still much safer to invest than most of the other options in the market. The debt-to-equity ratio is as high as 1.70 but the net profit margin of the company is only as much as 3%. After suffering aloss of $49.3 in the last quarter of 2011, this stock has been under-rated by the experts.
Kimberly-Clark Corp (KMB): This stock is currently trading in the market at a price of $72 per share approximately. Some experts predict that the price might fall but others feel that it will remain unchanged for a while. Market capitalization of this stock at its current price is above $28 billion and the trading range for the last 52 weeks is between $61 and $74. Earnings per share are currently $4 and the dividend yield is also close to 4%. The price-to-earnings (P/E) ratio is nearly 18. The beta for this stock is 0.32 and a rating of 7 out of 10 has been given to this stock by the experts and analysts. The net profit margin of the company is above 7% but the income growth is showing a negative trend. The question being asked in the market is whether Kimberly-Clark with its low-risk beta and a dividend payout of 70% along with the 4% annual dividend, will be able to do so in the long term or not. I believe it is better not to invest in this stock. This is because its operating profit and revenues are showing a downward trend and the price might also fall. Risk is low at the moment but can increase with time.