Monday, May 20, 2013

Top 5 Consumer Companies To Own In Right Now

After its worst day of the year yesterday, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) bounced back today as investors saw buying opportunities and responded to a strong housing report and some bullish earnings reports. The blue chips finished the session up 1.1%.

Housing starts in March topped 1 million for the first time since 2008, hitting an annual rate of 1,036,000. Last month's figure beat expectations by more than 100,000, and was a strong gain from starts in February at 968,000, which was revised up from 917,000. Construction of multifamily units jumped 27%, while single-family homes dropped 4.8%. Building permits, a leading indicator for housing starts, came in below expectations, possibly indicating that last month's spike will be short-lived. The Consumer Price Index also declined slightly in March, essentially in line with expectations, indicating that despite the Fed's continued stimulus, the economy is far away from any inflation concerns.

Top 5 Consumer Companies To Own In Right Now: Thorpe(fw)

FW Thorpe Plc, together with its subsidiaries, designs, manufactures, and supplies professional lighting systems for industrial, commercial, and controls markets primarily in the United Kingdom and rest of Europe. Its professional lighting systems comprise lighting control, emergency lighting, exterior lighting, and high and low bay lighting systems; LED, recessed, surface mounted, and suspended luminaires; and up and downlighters, lamps, and transformers. The company also provides emergency exit signage products; amenity, historical, trough, gas, and sign lighting products; and columns, brackets, and flambeaux products. In addition, it manufactures and supplies clean room lighting equipment and luminaires, such as recessed fluorescent and surface fluorescent products for laboratories, pharmaceutical areas, semi-conductor manufacturing areas, hospitals, kitchens, and food preparation applications. The company is headquartered in Redditch, the United Kingdom.

Top 5 Consumer Companies To Own In Right Now: Gildan Activewear Inc.(GIL)

Gildan Activewear Inc. engages in the manufacture and sale of apparel products primarily in the United States, Canada, and Europe. It sells T-shirts, fleece, and sport shirts to wholesale distributors under the Gildan brand name. The company also provides its activewear products for work and school uniforms and athletic team wear, and other purposes to convey individual, group, and team identity. In addition, it offers undecorated products to branded apparel companies and retailers; and underwear products. Further, the company markets its sock products under the various brands, including Gold Toe, PowerSox, SilverToe, Auro, All Pro, GT, and the Gildan brand. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995. Gildan Activewear Inc. was founded in 1984 and is headquartered in Montreal, Canada.

Advisors' Opinion:
  • [By Matthews]

    Gildan Activewear is a definite leader in apparel manufacturing. The company has great growth and solid profitability in a market where it is tough to create economic moats. It offers a compelling 1.5% dividend, and we believe that the company has upside to our price target of $36. The company should be able to make a nice move higher from here as it outperforms the industry in growth with sales and earnings outpacing the industry exceptionally. Further, it is considerably undervalued with a PE at 10 vs. an industry average around 20. Value and growth in one...can't beat it.

    Allocation: $2000

    Entry: $19.85

    Target: $21.85, $24.00, and $36

Top Undervalued Companies To Buy Right Now: V.F. Corporation(VFC)

V.F. Corporation designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. The company offers apparel, footwear, outdoor gear, skateboard-inspired and surf-inspired footwear, backpacks, luggage, handbags and accessories, outdoor apparel, travel accessories, and women?s active wear primarily under the Vans, The North Face, JanSport, Eastpak, Kipling, Napapijri, Reef, Eagle Creek, and lucy brands; and denim and casual bottoms, and tops principally under Wrangler, Lee, Riders, Rustler, and Timber Creek by Wrangler brands. Its products also include occupational, athletic, and licensed apparel primarily under the Red Kap, Bulwark, Majestic, MLB, NFL, and Harley-Davidson brands; men?s fashion sportswear, denim bottoms, sleepwear, underwear, as well as handbags, luggage, backpacks, and accessories principally under the Nautica and Kipling brands; and denim and casual bottoms, sportswear, acce ssories, men?s apparel and footwear, and women?s sportswear primarily under the 7 For All Mankind, John Varvatos, Splendid, and Ella Moss brands. The company sells its products to specialty stores, department stores, national chains, and mass merchants primarily through its sales force, independent sales agents, and distributors. V.F. Corporation was founded in 1899 and is based in Greensboro, North Carolina.

Advisors' Opinion:
  • [By Stephen]

    Vanity Fair Co. is one of the best in apparel manufacturing with an all-star lineup and its knack for great acquisitions like Timberland (TBL) in 2011. The company has Lee, Wrangler, Vans, Timberland, Lucy, and many other brands that work on many different fronts. We believe 2012 should continue to be a strong growth year for the company, and we believe as it works some more debt off from the balance sheet the company will continue to see its equity value continue to improve. The company should be moving to around $170 this year. Plus, the company offers a solid 2.1% yield. Growth stock for sure.

    Allocation: $2500

    Entry: $135.35

    Target: $148, $162, and $170

  • [By Rebecca Lipman]

     Designs and manufactures, or sources from independent contractors various apparel and footwear products primarily in the United States and Europe. Market cap of $14.26B. EPS growth (5-year CAGR) at 19%. According to Morgan Stanley: "VF's changing port-folio mix toward Outdoor and Action Sports should allow it to grow faster, producing mid-teens EPS growth annually. We are bullish on the Timberland acquisition and believe it will be a meaningful contributor to the top and bottom lines."

Top 5 Consumer Companies To Own In Right Now: Burberry Group(BRBY.L)

Burberry Group plc, through its subsidiaries, designs, sources, manufactures, and markets luxury clothing and non-apparel accessories for men, women, and children primarily in Europe, the Americas, and the Asia Pacific. Its products include outerwear, casual wear, fragrances, eyewear, timepieces, shoes, handbags, small leather goods, scarves, shoes, belts, and jewelry. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks; sells its products to department stores, specialty retailers, and its franchisees on a wholesale basis; operates mainline stores, concessions within department stores, and outlets; and offers its products through digital commerce channels. As of June 30, 2011, it had 181 retail stores, 197 concessions, 45 outlets, and 52 franchise stores. The company was founded in 1856 and is headquartered in London, the United Kingdom.

Top 5 Consumer Companies To Own In Right Now: Coca-Cola Bottling Co. Consolidated(COKE)

Coca-Cola Bottling Co. Consolidated, together with its subsidiaries, engages in the production, marketing, and distribution of nonalcoholic beverages, primarily products of The Coca-Cola Company. The company offers sparkling beverages, such as energy drinks; and still beverages, including bottled water, tea, ready-to-drink coffee, enhanced water, juices, and sports drinks. It holds cola beverage agreements and allied beverage agreements, under which it produces, distributes, and markets sparkling beverage products of The Coca-Cola Company in certain regions. The company also distributes and markets still beverages of The Coca-Cola Company, such as POWERade, vitaminwater, and Minute Maid Juices To Go, as well as produces, distributes, and markets Dasani water products under still beverage agreements. In addition, it holds agreements to produce and market Dr Pepper. Further, the company distributes and markets various other products, including Monster energy productsand Sund rop, as well as its own products, such as Country Breeze tea, diet Country Breeze tea, and Tum-E Yummies, a vitamin C enhanced flavored drink, Bean & Body, and Simmer and Bazza energy tea. Additionally, it produces beverages for other Coca-Cola bottlers; and provides restaurants and other immediate consumption outlets with fountain products. The company sells and distributes its products directly to retail stores and other outlets, including food markets, institutional accounts, and vending machine outlets. It operates in North Carolina, South Carolina, south Alabama, South Georgia, middle Tennessee, western Virginia, and West Virginia. The company was founded in 1902 and is based in Charlotte, North Carolina.

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