Sunday, 30. April 2017  
09.07.2016 14:32
Author: Nic Wright

STOCK SCREEN: Consumer Stocks With Solid Margin-Of-Safety And Relative Strength

 

Consumer spending in the United States has been on the rise due to improvements in the job and housing market and lower energy costs. Personal spending in the United States rose by 1.1% month-over-month in April, the largest increase witnessed in nearly seven years. This increase in consumer spending has translated well for U.S. focused consumer companies, while the economic turmoil being faced by other regions of the world like China and the United Kingdom left consumers in those countries grappling with uncertainty.

 

However, the recent financial market turmoil created by Brexit might slow or possibly even reverse the interest rate hike cycle in the U.S. When interest rates stay low, consumer stocks could see continued support in the U.S. and, in the case of Europe, bounce back from low levels.

 

In this week's screen, we search for consumer stocks with solid Margin-Of-Safety, according to our AVM’s Intrinsic Stock Value estimates, and with Relative Price Strength.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. Upside to Intrinsic Stock Value according to our AVM’s Graham Value estimates.

3. Relative Strength on a 12 month basis.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

INDUSTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

DIVIDEND YIELD [%]

 AETNA INC

 United States

 Healthcare Services

115.47

40484

-17.0

22.8

8.8

0.8

 AMSURG CORP

 United States

 Healthcare Services

76.40

4187

4.4

84.0

37.3

0.0

 CENTENE CORP

 United States

 Healthcare Services

69.00

11763

-16.8

6.1

6.1

0.0

 COACH INC

 United States

 Apparel

40.57

11280

20.2

24.1

-12.4

3.4

 FIRST CASH FINL SVCS INC

 United States

 Retail

49.97

1411

6.4

9.1

6.1

1.1

 HYUNDAI MOBIS CO LTD

 South Korea

 Auto Parts&Equipment

249500.00

24287294

56.3

71.1

68.1

1.6

 JB HI-FI LTD

 Australia

 Retail

23.53

2328

-1.7

0.1

0.1

4.1

 KONINKLIJKE AHOLD NV

 Netherlands

 Food

20.72

17292

-7.7

1.2

-10.2

2.7

 MAGELLAN HEALTH SERVICES INC

 United States

 Healthcare Services

65.70

1627

18.2

69.1

0.2

0.0

 METRO AG

 Germany

 Food

27.13

8855

22.2

37.4

-21.2

3.7

 WAL-MART STORES INC

 United States

 Retail

73.53

229167

4.0

3.5

-2.7

2.8

 WESTERN UNION CO

 United States

 Commercial Services

19.00

9332

12.0

19.9

-6.2

3.4