Earlier this month in the ETF Corner, historical consumer strength running from approximately the end of September to the beginning of June in the following year was the basis for two new ETF trade ideas. Based upon the Morgan Stanley Consumer Index, the sector has produced gains averaging 10.8% over the last 15 years during this timeframe. Having recently added SPDR Retail (XRT) to the Almanac Investor ETF Portfolio, the time is right to consider adding individual consumer-orientated stocks to the Stock Portfolios.
A total of five companies were identified, two mid caps (from $1 billion to $5 billion) and three large caps (greater than $5 billion). Valuation metrics and revenue growth were the key factors in the selection process, but numerous other factors were weighed. All will be tracked in their respective Almanac Investor Portfolios and will appear in the next stock portfolios update.
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Written By Christopher Mistal