Sectors: Consumer Goods
HVN is painting a very similar picture to the previous 3 stocks considered this morning, it again feels cheap trading on an Est. A valuation of 8.1x earnings for 2022 shows how negative the market has become on retail generally, and HVN specifically while its almost 9% yield has probably caught some yield hungry investors leaving them nurturing some paper losses.
Household name and favourite store of many JBH has been sold off aggressively in 2022 with a top to bottom decline of ~35%. Like so many companies the stock feels cheap trading on 9.5x Est earnings for 2022 plus a forecast yield in excess of 5% is attractive on most metrics. However while the market’s pricing in a strong possibility of a recession it’s hard to see much upside…
Retail drinks and hospitality business EDV has performed well through 2022 managing to largely ignore all of the macro factors in play. People are partial to a drink during tough times and the owners of Dan Murphy’s and BWS are clearly well-positioned for this trend. The group enjoy online sales In excess of $1bn with 40% of its sales now digitally influenced – ordering online at Dan Murphy’s and picking up through the drive-through delivers a great customer experience!
At the start of the month, we felt JBH was looking good as a contrarian play around $43 however since recession fears have increased significantly lower prices feel almost inevitable for this leading retailer. The stock remains relatively cheap on an Est. P/E of 9.3x for 2022 while its fully franked dividend due in August remains attractive – one for patience and our “Hit list”. Basically, we feel economic concerns will drag the stock back towards $35 where its valuation will become very attractive.
YETI Holdings, Inc. is a designer, retailer, and distributor of outdoor products. The Company’s product portfolio is comprised of three categories: Coolers & Equipment; Drinkware, and Other. Its Coolers & Equipment family is comprised of hard coolers, soft coolers, cargo, bags, outdoor living, and associated accessories. It offers five product ranges within its hard cooler category: YETI Tundra, YETI Roadie, Tundra Haul, YETI TANK and YETI Silo 6G. The Hopper soft cooler product line includes Hopper M30, Hopper BackFlip, Hopper Flip, Daytrip Lunch Bag and Daytrip Lunch Box. Its Drinkware product family consists of Rambler Colster, Rambler Lowball, Rambler Wine Tumbler, Rambler Stackable Pints, Rambler Mugs, Rambler Tumblers, Rambler Bottles, and Rambler Jug. In Other products, it offers an array of YETI-branded gear, such as hats, shirts, bottle openers and ice substitutes. It operates in the Unites States, Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore and Japan.
As interest rates rise, discretionary spending generally contracts and that’s why we’ve seen the consumer discretionary sector sell-off both locally and overseas – it makes total sense, however it’s also important to understand that there are different levels of discretion i.e. areas that consumers pull back on more than others. As an aside, it will also be very interesting to see how discretionary things are in…
lululemon athletica inc. is a designer, distributor and retailer of lifestyle inspired athletic apparel and accessories. The Company’s segments include Company-operated stores and direct to consumer. Its apparel assortment includes items such as pants, shorts, tops, and jackets designed for a healthy lifestyle, including athletic activities such as yoga, running, training, and other sweaty pursuits. It also offers fitness-related accessories. Its Company-operated stores include approximately 600 stores in 17 countries. Its retail stores are located primarily on street locations, in lifestyle centers, and in malls. Its direct to consumer segment includes electronic commerce Website www.lululemon.com, other country and region-specific websites, and mobile applications, including mobile applications on in-store devices. The Company also conduct business through MIRROR, which offers in-home fitness through a workout platform; operate outlets and temporary locations.
JBH is the standout today having fallen only 24%, arguably no surprise when many children still refer to its as “kids heaven” – what happened to the toy shops! The stock feels cheap around 10.4x 2022 earnings while a healthy fully franked dividend due in August makes this another tempting contrarian play.
Brunswick is the biggest recreational boating company in the world owning brands like Mercury, Bostan Whaler & Bayliner to mention just a few, however, their reach is significant ranging from propulsion to finance & insurance. We bought BC US about a year ago and the stock has declined since with the position sitting on a ~28% paper loss which begs the question, what should MM do? There are two competing factors at play…
Retail drinks and hospitality business EDV was the worst performing stock on the ASX200 yesterday falling over 6% following the selling across the consumer defensives i.e. it’s up the most being one of the likely reasons it got sold off the hardest. However an investors day presentation pressed a few alarm bells although there were no surprises with the company reiterating guidance including the addition…
