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The Best US Consumer Stocks to Buy in March

Mar 05, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
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  • US Consumer stocks have been a popular discussion point among investors of late following a mostly stronger-than-expected holiday season for retailers and the conclusion of CY4Q2018 earnings season. Analysts are speculating that consumer discretionary spending in the US could face a slowdown in 2019 as a large portion of the US population will receive smaller-than-expected tax returns for the 2018 season after already realizing a majority of the benefits from President Trump’s tax overhaul in the 2017 tax season.
     
  • In spite of the challenging macroeconomic environment for consumer spending, US consumer company management team sentiment, as measured by outlook and guidance, improved throughout the CY4Q2018 earnings season. 
     
  • As we inch closer to the conclusion of the 2018 tax filing season, we wanted to highlight some names that look attractive both in terms of their respective consumer stocks models and their market capitalization models. In the table below, we highlight names that are “Top Buys” in our US Consumer stock models and “Top Buys” in our US capitalization stock models.

Quantamize US Consumer Models and US Market Capitalization Models Top Buys

Company Name Ticker Sector Industry Consumer Model Ranking Market Capitalization Model Ranking
DOLLAR GENERAL CORP DG Consumer Discretionary Multiline Retail US Consumer Discretionary Top Buy US Large-Cap Top Buy
GENUINE PARTS CO GPC Consumer Discretionary Distributors US Consumer Discretionary Top Buy US Large-Cap Top Buy
HOME DEPOT INC HD Consumer Discretionary Specialty Retail US Consumer Discretionary Top Buy US Large-Cap Top Buy
O'REILLY AUTOMOTIVE INC ORLY Consumer Discretionary Specialty Retail US Consumer Discretionary Top Buy US Large-Cap Top Buy
STARBUCKS CORP SBUX Consumer Discretionary Hotels, Restaurants & Leisure US Consumer Discretionary Top Buy US Large-Cap Top Buy
PHILIP MORRIS INTERNATIONAL PM Consumer Staples Tobacco US Consumer Staples Top Buy US Large-Cap Top Buy

 

  • Dollar General Corp. (DG) is a discount retailer that operates across the United States and sells consumable products, such as paper, cleaning, home, and food products in its physical retail locations.
     
  • Dollar General is trading at a reasonable trailing 12M P/E ratio of 17.05x while analysts expect the discount retailer to grow its EPS by 13.30% per annum over the next 3 years.  
     
  • Dollar General is set to report FY4Q2019 earnings on March 14th, 2019. 
     
  • Dollar General is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Genuine Parts Co. (GPC) is an automotive company headquartered in Atlanta, Georgia that distributes replacement parts, industrials parts, and other automotive materials across the globe.
     
  • Genuine Parts Co. appears to be a sound anti-cyclical long-term investment that offers a strong dividend payment to investors. As of Monday’s close, Genuine Parts Co. offers investors a dividend yield of 2.8% while it trades at a trailing 12M multiple of 19.91x.  
     
  • Genuine Parts reported CY4Q2018 financials on February 19th, 2019 that investors interpreted as satisfactory. Genuine Parts generated an adjusted EPS of USD$1.35 in CY4Q2018 while analysts had expected USD$1.32. 
     
  • Genuine Parts Co. is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Home Depot Inc. (HD) is a home improvement retailer that sells building materials, home improvement products, lawn and garden care products and home maintenance services to do it yourself and professional customers across North America.
     
  • Home Depot is another consumer stock offering a strong dividend outlook, currently trading at a dividend yield of 3.0%. Home Depot recently hiked its quarterly dividend payment by 32% in CY4Q2018 while the home improvement retailer has grown its annual dividend for 9 consecutive years.
     
  • Home Depot reported CY4Q2018 adjusted EPS of USD$2.22 on February 26th, 2019, beating consensus of USD$2.16.  Home Depot reported CY4Q2018 adjusted revenue of USD$26.49 billion in line with consensus of USD$26.58 billion.  Home Depot reported CY4Q2018 same store sales growth of 3.2% while consensus was for a 4.5% rise.  Home Depot gave same store sales growth guidance in 2019 of 5% with revenue growth of 3.3%.
     
  • Home Depot is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • O’Reilly Automotive Inc. (ORLY) is an automotive retailer that sells aftermarket parts, tools, supplies, equipment, and other auto components to customers in the United States.
     
  • Analysts expect robust bottom-line long-term EPS growth of 15.3% per annum over the next 3 years for O’Reilly while the stock ended 2018 with an attractive return on invested capital of 30.8%.  
     
  • O'Reilly reported CY4Q2018 EPS of USD$3.72 on February 6th, 2019 that slightly missed consensus of USD$3.75. O'Reilly generated same store sales growth of just 3.30% in CY4Q2018 that also missed consensus of 3.81%. 
     
  • O’Reilly is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Starbucks Corporation (SBUX) is a global specialty coffee retailer that sells coffee and tea beverages, whole bean and ground coffees, and single-serve coffee brewing products.
     
  • Starbucks is especially attractive on a quality value basis, where it maintains “Top Buy” scores in the Quality Value Factor for both the US Large-Cap and the US Consumer Discretionary models.  
     
  • Starbucks reported CY4Q2018  EPS of USD$0.69 on January 28th, 2019 while consensus was for USD$0.65.  Starbucks CY4Q2018 revenue came at USD$6.63 billion while consensus was for USD$6.48 billion. 
     
  • Starbucks is rated “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Philip Morris International (PM) manufactures and sells cigarettes, other nicotine products, and smoke-free products through its various subsidiaries across the globe.
     
  • Phillip Morris’ strength appears to be as a dividend stock with its attractive dividend yield of 5.2% as of Monday’s closing price. Phillip Morris also trades at an attractive 12M trailing multiple of 16.64x its earnings.  
     
  • Phillip Morris reported CY4Q2018 adjusted EPS of USD$1.25 that blew past analyst consensus of USD$1.16. Philip Morris also reported better-than-expected revenue of USD$7.50 billion while analysts expected USD$7.46 billion. 
     
  • Phillip Morris is rated “Top Buy” in our US Consumer Staples Global Top Stock Ideas and “Top Buy” in our US Large-Cap Global Top Stock Ideas.

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS