iShares U.S. Consumer Staples ETF (ARCA: IYK)

Ultime notizie per iShares U.S. Consumer Staples ETF (ARCA:IYK)

iShares U.S. Consumer Staples ETF

iShares U.S. Consumer Goods ETF

Consumer Defensive

Healthcare

Basic Materials

Other

Consumer Cyclical

Industrials

The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. The underlying index measures the performance of the consumer goods sector of the U.S. equity market. The fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents. It is non-diversified.

Procter & Gamble Company

Coca Cola Co.

Pepsico Inc.

Philip Morris International Inc.

Mondelez International Inc. Class A

Altria Group Inc.

Mckesson Corp.

Colgate-Palmolive Co

Cvs Health Corp.

Kimberly-Clark Corp.

iShares US Consumer Staples ETF

PepsiCo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) shares are trading relatively flat <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">on Tuesday in the premarket session.</a>
PepsiCo is engaged in advanced discussions to purchase Siete Foods, a tortilla-chip manufacturer, for over $1 billion,&nbsp;&nbsp;<a target="_blank" href="https://www.wsj.com/business/retail/pepsi-nears-deal-for-tortilla-chip-maker-siete-foods-bb56047b" rel="noreferrer noopener">reported</a> The Wall Street Journal, citing people familiar with the matter.
An announcement regarding the acquisition of the privately held business could come soon, as long as the negotiations proceed smoothly, the report read.
Reuters noted in a news report that the acquisition occurs amid strong deal activity in the U.S. packaged food industry. Companies aim to grow their operations while inflation-strained consumers reduce spending and turn to private-label brands.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40936354/target-hires-pepsico-veteran-jim-lee-as-finance-chief" rel="noreferrer noopener">Target Hires PepsiCo Veteran Jim Lee As Finance Chief</a>
For PepsiCo, the acquisition aligns with its commitment to providing healthier snack options by reducing sodium, saturated fat, and sugar levels in its chips. Siete offers a variety of products, including tortillas made from almond flour, The Wall Street Journal added.
In addition, Pepsi&#8217;s recent chip-related acquisitions include Bare Foods, a producer of baked fruit and vegetable snacks, in 2018, and BFY Brands, the creator of PopCorners snacks, shortly thereafter.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, PEP stock has lost over 1% year to date. Investors can gain exposure to the stock viaiShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>).
Price Action: PEP shares are trading higher by 0.01% to $170.06 premarket at last check Tuesday.
Photo by Rafapress via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41113339/elon-musk-resumes-slamming-fccs-decision-to-deny-starlink-885m-subsidy-after-fema-sends-its-terminal" target="_blank" rel="noreferrer noopener">Elon Musk Resumes Slamming FCC&#8217;s Decision To Deny Starlink $885M Subsidy After FEMA Sends Its Terminals To Help Hurricane Helene Victims</a></li>
</ul>

Equities

News

Markets

Movers

Media

General

FTXG

iShares Trust Dow Jones USnsumer Goods Sector Index Fund

PepsiCo Eyes Tortilla Maker Siete Foods In $1B Deal: Report

As the Federal Reserve transitions from a restrictive monetary policy to a more accommodative stance, investors are questioning how this regime change will <a href="https://www.benzinga.com/topic/interest-rates">impact various asset classes. </a>
The central bank&#8217;s shift towards lower interest rates can have far-reaching implications across equities, bonds, and other markets.
Historically, stocks have tended to perform well following the Fed&#8217;s initial rate cuts—but with a crucial caveat: the economy must avoid slipping into a recession. An <a href="https://www.benzinga.com/economics/macro-economic-events/24/09/40855247/fed-rate-cuts-and-s-p-500-the-why-matters-most-data-shows">analysis by Goldman Sachs</a> reveals that the S&amp;P 500 has experienced significant declines even after rate cuts if the U.S. economy entered a recession during those periods.
When it comes to bonds, lower interest rates have generally led to a decrease in bond yields, thus driving up bond prices. Unlike equities, this dynamic has historically played out somewhat independently of the economic cycle. However, &#8220;what's past is prologue&#8221; is not always a guarantee in financial markets.
<h2 class="wp-block-heading">&#8216;Quality Can Be Found Across Asset Classes&#8217;</h2>
According to Bank of America&#8217;s latest Research Investment Committee (RIC) report, investors can identify quality opportunities across various asset classes, particularly in today&#8217;s shifting market landscape.
BofA analysts suggest that in the U.S. equity space, investors should adopt a defensive stance, focusing on companies with high free cash flow.
Savita Subramanian, head of U.S. equity &amp; quantitative strategy at BofA, notes that S&amp;P 500 valuations indicate low price returns for the next decade, making dividend payouts more crucial for total returns.
<ul>
<li>Utilities: Recently <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40823561/this-under-the-radar-defensive-ai-sector-quietly-outperforms-all-others-despite-rec">upgraded to Overweight by BofA, </a>the utilities sector stands out for its defensive characteristics and competitive yield. Subramanian indicates that growing power demand driven by AI-linked data centers bolsters the outlook for utility companies. ETFs like the First Trust Utilities AlphaDEX ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXU#NYSE">FXU</a>) and the Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) are potential plays in this space.</li>
<li>Real Estate: Offering higher quality yield than before, with 70% of the sector rated B+ or better, the real estate sector provides attractive options. BofA notes that the S&amp;P 500 real estate segment has relatively low office exposure, which could mitigate some risks. Recommended ETFs include the Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) and iShares Cohen &amp; Steers REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICF#NYSE">ICF</a>).</li>
<li>Consumer Staples: BofA finds the consumer staples sector tactically attractive, especially ETFs like the Consumer Staples Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>), which has substantial exposure to resilient companies like The Procter &amp; Gamble Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PG#NYSE">PG</a>), Costco Wholesale Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COST#NASDAQ">COST</a>), Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>). Another sector play here is the iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>). </li>
<li>Value, Quality, Dividends, and Buybacks: The bank is also bullish on factor-based ETFs, recommending exposure in value, quality, dividend, and buyback amid a strong free cash flow yield and potential for higher payouts than the broader S&amp;P 500 index. ETFs in this category include the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), Pacer US Cash Cows 100 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COWZ#NYSE">COWZ</a>), Schwab US Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>), and iShares Core Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIVB#NYSE">DIVB</a>).</li>
</ul>
Outside the U.S., Bank of America is bullish on Japanese equities as effective corporate reforms are expected &#8220;to unleash a mountain of cash.&#8221; The WisdomTree Japan Hedged Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DXJ#NYSE">DXJ</a>) is a top pick in this market, having gained 125% since 2019. This ETF also offers protection against the yen&#8217;s devaluation. 
In the fixed-income market, BofA suggests exposure to AAA-rated collateralized loan obligations (CLOs) and long-dated Treasury bonds.
<ul>
<li>CLOs: BofA recommends the Janus Henderson AAA CLO ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JAAA#NYSE">JAAA</a>), viewing these loans as quality yield options that have withstood stress during both the 2008 financial crisis and the 2020 pandemic-induced downturn.</li>
<li>Long-Dated Treasuries: Investors looking for duration exposure can consider the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>), which tracks long-dated Treasury bonds with a 17-year duration.</li>
</ul>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Asset Class</th>
<th>Name</th>
</tr>
</thead>
<tbody>
<tr>
<td colspan="3">Equities</td>
</tr>
<tr>
<td>Utilities</td>
<td>First Trust Utilities AlphaDEX ETF</td>
</tr>
<tr>
<td>Utilities </td>
<td>Utilities Select Sector SPDR Fund</td>
</tr>
<tr>
<td>Real Estate</td>
<td>Real Estate Select Sector SPDR Fund </td>
</tr>
<tr>
<td>Real estate</td>
<td>iShares Cohen &amp; Steers REIT ETF</td>
</tr>
<tr>
<td>Consumer staples</td>
<td>Consumer Staples Select Sector SPDR ETF </td>
</tr>
<tr>
<td>Consumer staples</td>
<td>iShares U.S. Consumer Staples ETF</td>
</tr>
<tr>
<td>Value</td>
<td>Vanguard Value ETF</td>
</tr>
<tr>
<td>Quality</td>
<td>Pacer US Cash Cows 100 ETF </td>
</tr>
<tr>
<td>Dividend</td>
<td>Schwab US Dividend Equity ETF</td>
</tr>
<tr>
<td>Buybacks</td>
<td>iShares Core Dividend ETF </td>
</tr>
<tr>
<td>Japan</td>
<td>Wisdom Tree Japan Hedged Equity ETF</td>
</tr>
<tr>
<td colspan="3">Fixed income</td>
</tr>
<tr>
<td>Credit</td>
<td>Janus Henderson AAA CLO ETF</td>
</tr>
<tr>
<td>Duration</td>
<td>iShares 20+ Year Treasury Bond ETF </td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40887448/long-dated-treasury-bond-etf-hits-14-month-highs-ahead-of-imminent-fed-rate-cut">Long-Dated Treasury Bond ETF Hits 14-Month Highs Ahead Of Imminent Fed Rate Cut</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Analyst Color

REIT

Sector ETFs

Bonds

Broad U.S. Equity ETFs

Specialty ETFs

New ETFs

Treasuries

Econ #s

ETFs

Real Estate

COST

COWZ

DIVB

WisdomTree Trust Japan Total Dividend Fund

iShares Trusthen & Steers Realty Majors Index Fund

JAAA

SCHD

iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

13 ETFs To Own As Fed Set To Cut Rates: Analysts Highlight Utilities, Real Estate, And More

A federal judge has ruled that PepsiCo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) can be reportedly sued for marketing its Gatorade protein bars as healthy despite having more sugar than protein and exceeding the<a target="_blank" href="https://www.benzinga.com/news/24/07/39795521/pepsico-teams-up-with-yara-to-reduce-crop-emissions-in-europe" rel="noreferrer noopener"> sugar content of typical candy bars.</a>
On Wednesday, U.S. District Judge Casey Pitts in San Jose, California, ruled that three self-identified fitness enthusiasts leading a proposed class action had plausibly claimed that PepsiCo&#8217;s marketing and labeling were deceptive, reported Reuters.
Not all protein bars offer the same nutritional benefits. The report noted that last September, PepsiCo was accused of violating federal and state consumer protection laws by promoting Gatorade bars with a misleading &#8220;health halo,&#8221; including claims that they &#8220;help muscles rebuild,&#8221; are &#8220;used by the pros,&#8221; and are &#8220;backed by science.&#8221;
Check This Out:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40391777/walmart-q2-earnings-e-commerce-and-advertising-businesses-fuel-revenue-and-profit-beat-hikes-annual" rel="noreferrer noopener">Walmart Q2 Earnings: E-commerce and Advertising Businesses Fuel Revenue And Profit Beat, Hikes Annual Guidance</a>
The lawsuit claims the bars are &#8220;fortified junk food,&#8221; containing 29 grams of sugar (28 grams added), surpassing the American Heart Association&#8217;s 25-gram daily limit for women, and only 20 grams of protein.
The plaintiffs argued that excessive added sugar is linked to obesity, diabetes, and heart disease, claiming they would not have purchased the bars or would have paid less if they had known their nutritional content. They are seeking unspecified damages.
Per the report, PepsiCo countered that the claims of deception are &#8220;implausible,&#8221; as the bars were not marketed as healthy or low in sugar, particularly for flavors like Chocolate Chip and Cookies and Cream.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, PEP stock has lost over 5% in the past year. Investors can gain exposure to the stock via&nbsp;iShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and&nbsp;First Trust Nasdaq Food &amp; Beverage ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXG#NASDAQ">FTXG</a>).
Price Action: PEP shares are trading lower by 0.86% to $172.22 at last check Thursday.
Photo by Rafapress via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40391260/s-p-500-eyes-6th-straight-win-but-investor-sentiment-remains-cautious-ahead-of-data-deluge-walmart-" target="_blank" rel="noreferrer noopener">S&amp;P 500 Eyes 6th Straight Win, But Investor Sentiment Remains Cautious Ahead Of Data Deluge, Walmart Earnings And Other Key Events</a></li>
</ul>

Legal

PepsiCo Faces Legal Heat: Gatorade Protein Bars Criticized For Excessive Sugar

PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) has signed a long-term partnership deal with Yara International ASA to equip farmers with advanced crop nutrition programs and <a target="_blank" href="https://www.yara.com/corporate-releases/pepsico-europe-and-yara-partner-to-decarbonize-crop-production/" rel="noreferrer noopener">decarbonize the food value chain across Europe</a>.
The collaboration will provide farmers with best-in-class crop nutrition products, precision farming digital tools, and expert advice to improve nutrient use efficiency, boost yields, and reduce the carbon footprint of their crops, the company claims.
As part of this partnership, Yara will supply PepsiCo with up to 165,000 tons of fertilizer annually, covering about 25% of their crop fertilizer needs in Europe by 2030.
These fertilizers will include Yara Climate Choice fertilizers, which have a low carbon footprint and are produced from either renewable ammonia or low-carbon ammonia via carbon capture and storage (CCS).
This effort supports farmers through transition costs, ensuring their livelihoods are maintained.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39735623/salmonella-saga-fda-reportedly-uncovers-years-of-contamination-at-pepsico-plant" rel="noreferrer noopener">Salmonella Saga: FDA Reportedly Uncovers Years of Contamination at PepsiCo Plant</a>
The partnership will initially focus on potatoes, a significant crop for PepsiCo, and expand to other crops such as oats and corn. It will involve approximately 1,000 farms and cover around 128,000 hectares in the EU and U.K.
It will also scale up sustainable nutrient management practices across PepsiCo's farmer groups, including full-season crop and soil data capture and monitoring using PepsiCo's CropTrak and ML Analytics tools, complemented by Yara's digital solutions.
Natural gas serves as both a feedstock and an energy source in nitrogen fertilizer production. Green ammonia, an alternative, is made by combining hydrogen from water electrolysis using renewable energy with nitrogen, reported Bloomberg.
While the production of green ammonia is energy-intensive, companies like Yara are working to increase its availability.
Pepsi reported second-quarter sales growth of 0.8% year-on-year to $22.501 billion, missing the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39725480/pepsicos-q2-performance-annual-outlook-underwhelms-investors-stock-slides" rel="noreferrer noopener">analyst consensus estimate of $22.599 billion.</a>
PepsiCo stock has lost about 11% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: At the last check on Tuesday, PEP shares were trading lower by 0.13% at $163.65.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39736607/pepsico-q2-earnings-were-softer-than-expected-due-to-volume-pressure-goldman-sachs" target="_blank" rel="noreferrer noopener">PepsiCo Q2 Earnings Were Softer Than Expected Due To Volume Pressure: Goldman Sachs</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by ja-san-miguel for Unspalsh

PepsiCo Teams Up With Yara To Reduce Crop Emissions In Europe

The PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) factory responsible for a massive recall of Quaker Oats products has come under scrutiny after U.S. regulators reportedly discovered that salmonella had been present at the facility for up to four years.
The Quaker Oats plant in Danville, Illinois, was closed in April, but the Food and Drug Administration (FDA) has warned that this closure may not be enough to prevent similar contamination issues at other locations, reported <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-10/quaker-oats-recall-sparked-by-factory-where-salmonella-festered-for-years?srnd=industries-consumer&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
The recall, which began late last year and involved 22 million cases of Quaker Chewy Bars, has significantly impacted PepsiCo&#8217;s financial results.
Sales in the first quarter for the Quaker Foods North America division fell by 24% <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38387906/what-analysts-are-saying-about-pepsicos-q1-earnings" rel="noreferrer noopener">to $593 million.</a>
PepsiCo has indicated that the effects of the recall will continue to affect its performance at least through the <a target="_blank" href="https://www.benzinga.com/24/04/38425688/pepsi-tops-estimates-despite-a-weakened-domestic-market" rel="noreferrer noopener">first half of the year.</a>
According to the FDA, a granola bar from the Illinois factory tested positive for salmonella in November. PepsiCo confirmed this finding more than two weeks later and initiated a product recall on December 14.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39458981/pepsico-waives-clause-paving-way-for-carlsbergs-potential-britvic-buy" rel="noreferrer noopener">PepsiCo Waives Clause Paving Way For Carlsberg&#8217;s Potential Britvic Buy</a>
The company noted in its recall notice that salmonella could cause serious, sometimes fatal infections in vulnerable populations, including young children, the elderly, and individuals with weakened immune systems.
FDA inspectors visited the Danville facility shortly after the recall began and found salmonella in a crack in the floor with food residue.
PepsiCo admitted that it had identified the same strain of salmonella in the facility since at least 2020, the report mentioned. Routine testing swabs conducted since June 2022 detected the bacteria 13 times, yet the source of contamination remained unidentified.
The FDA has urged PepsiCo to evaluate whether additional measures are needed at other factories to prevent persistent contamination.
PepsiCo stock has lost about 11% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: PEP shares are trading higher by 0.68% at $164.70 in premarket at last check Thursday.
Photo by Rafapress via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com//node/39725480" target="_blank" rel="noreferrer noopener">PepsiCo&#8217;s Q2 Performance, Annual Outlook Underwhelms Investors, Stock Slides</a></li>
</ul>

Salmonella Saga: FDA Reportedly Uncovers Years of Contamination at PepsiCo Plant

Danish brewer Carlsberg (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CABGY#OTC">CABGY</a>) said that PepsiCo Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) has agreed to waive a clause in its bottling agreement with Britvic (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BTVCY#OTC">BTVCY</a>) making the British company a more appealing acquisition target.
The development follows Britvic&#8217;s rejection of a $3.9 billion bid from Carlsberg, potentially paving the way for an increased offer.
The waiver will take effect if Britvic&#8217;s board recommends and completes an acquisition by Carlsberg, <a target="_blank" href="https://www.reuters.com/markets/deals/pepsico-waive-clause-bottling-deal-carlsberg-eyes-39-bln-britvic-bid-2024-06-24/" rel="noreferrer noopener">Reuters</a> reported.
Britvic&#8217;s shares surged by 10% to a record high of 1,207 pence in London following the news. The move signals Carlsberg&#8217;s ongoing interest in acquiring the soft drinks manufacturer.
Carlsberg&#8217;s interest in Britvic is aimed at expanding its beverage portfolio, particularly its soft drinks segment. Britvic, known for its Robinsons and R. White&#8217;s brands, holds a significant presence in the U.K. market.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/05/38956538/pepsico-doubles-down-on-electric-as-75-ford-e-transits-join-tesla-semi-trucks-in-fleet" rel="noreferrer noopener">PepsiCo Doubles Down On Electric As 75 Ford E-Transits Join Tesla Semi Trucks In Fleet</a>
Additionally, Britvic&#8217;s long-term franchise bottling agreement with PepsiCo, covering brands like Pepsi, 7UP, and Mountain Dew, adds value to the potential acquisition.
The change of control clause waiver provides enhanced protection for PepsiCo if Britvic&#8217;s ownership changes.
Carlsberg, which already bottles Pepsi products in markets like Norway and Sweden, stands to benefit from extending this partnership.
Carlsberg has until July 19 to make a formal offer for Britvic or withdraw. The Danish brewer is still assessing its position, with no certainty of an offer being made.
PepsiCo stock has lost more than 9% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Consumer Staples ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>).
Price Action: PEP shares were trading higher by 1.07% at $169.07 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by ja-san-miguel for Unspalsh

BTVCY

CABGY

PepsiCo Waives Clause Paving Way For Carlsberg's Potential Britvic Buy

Yesterday,&nbsp;Coca-Cola Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>) reported first-quarter FY24 sales growth of 3% year-on-year to $11.3 billion, beating the analyst consensus estimate of $11.01 billion.&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38519595/coca-colas-bottom-line-bubbles-up-company-raises-fy24-revenue-projections" rel="noreferrer noopener">Adjusted EPS of $0.72 came in above street view</a>.
The following are the comments from various analysts on the company&#8217;s first-quarter earnings performance.
Goldman Sachs&nbsp;&#8211; Reiterates Neutral, $60.00 price target
Analyst Bonnie Herzog said KO delivered an impressive start to the year with solid organic revenue growth of 11%, handily outpacing expectations.
The strong topline growth, coupled with some benefits from bottler re-franchising and underlying gross margin expansion, helped drive&nbsp;strong gross&nbsp;margin expansion, said the analyst.
Given the strong quarter, KO updated its FY24 guidance and now expects organic revenue growth of +8-9% and f/x-neutral EPS growth of +11-13%, which are&nbsp;quite&nbsp;strong relative to its peers.
Meanwhile, the analyst noted KO&#8217;s ability to generate faster dollar EPS growth this year is somewhat limited, which could weigh on the stock in the near term.&nbsp;
The analyst noted that North American volumes&nbsp;sequentially improved in the last two months of the first quarter&nbsp;as consumer elasticities remained resilient.
The analyst expects KO&#8217;s organic topline growth this year to be more balanced between volume and price/mix. However, the analyst noted the company&#8217;s organic sales guidance should be doable but could prove challenging given the difficult operating/macro environment.
KO&#8217;s stepped-up marketing spend is the right one to help drive healthy, sustainable long-term growth, said the analyst.
BofA Securities&nbsp;&#8211; Reiterates Buy, $68.00 price target
Analyst Bryan D. Spillane said KO led off with +11% organic sales to start FY24. Argentina was a benefit to pricing but a drag on unit case volume.
The analyst expects elevated pricing in Latam and EMEA markets through the year, albeit at a far more moderate pace than in&nbsp;first-quarter&nbsp;that should enable an inflection back to concentrate volume growth.
The analyst expects the second quarter YoY gross margin to benefit from bottler re-franchising and expand +120bps, with resilient&nbsp;profitability in&nbsp;North America and Asia-Pacific.
KO&#8217;s pricing power, which drove organic sales beats across all other geographic segments&nbsp;as well&nbsp;lends some reassurance that reiterated $2.80-2.82 EPS guide can be achieved, even amid the dynamic operating environment, said the analyst.
Truist&nbsp;Securities&nbsp;&#8211; Reiterates Buy, $65.00 price target
Analyst Bill Chappell has raised FY24 and FY25 sales and FY25 EPS estimates following the earnings.
FY24 and FY25 sales estimates&nbsp;are pumped&nbsp;to $46.282 billion and $48.380 billion (from $45.856 billion and $47.924 billion, respectively), and FY25 adj. EPS estimate to $3.03 from $3.00.
Investors can gain exposure&nbsp;Coca-Cola&nbsp;stock via&nbsp;IShares U.S. Consumer Staples ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>) and&nbsp;Vanguard Total Stock Market Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>).
Price Action: KO shares are trading higher by 1.08% at $62.44 at the last check Wednesday.
Image: Shutterstock/ 360b

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Coca-Cola's Refreshing Results: Analysts Bullish Despite Near-Term Concerns

Coca-Cola Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>) is reportedly preparing for a potential public offering of its African bottling arm, which had previously&nbsp;been postponed.&nbsp;
The company is considering a dual listing for Coca-Cola Beverages Africa in Johannesburg and Amsterdam, aiming for a business valuation exceeding $8 billion, according to a <a href="https://www.bloomberg.com/news/articles/2024-04-29/coca-cola-gears-up-for-ipo-of-8-billion-africa-bottling-arm?srnd=industries-v2&amp;sref=TBDibEcD">report </a>from Bloomberg, citing sources familiar with the matter.
Currently, Coca-Cola holds a 66.5% stake in the bottling unit, with the remaining 33.5% owned by Gutsche Family Investments.&nbsp;
Discussions regarding the IPO are in&nbsp;early&nbsp;stages, and specifics of the offering might undergo alterations, noted the report.
Coca-Cola spokesperson reportedly refrained from detailed comments, reiterating commitment to the IPO plan when market conditions improve.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/trading-ideas/previews/24/04/38498398/coca-cola-q1-earnings-preview-will-beverage-giant-beat-revenue-estimates-for-13th-straight" rel="noreferrer noopener">Coca-Cola Q1 Earnings Preview: Will Beverage Giant Beat Revenue Estimates For 13th Straight Quarter?</a>
In 2021, Coca-Cola initially declared its plan to divest a portion of its shareholding in the unit through an IPO, but&nbsp;the initiative was postponed&nbsp;the subsequent year.
Coca-Cola Beverages Africa ranks eighth among Coca-Cola bottlers globally by revenue and dominates African markets, the report added.
The unit covers approximately 15 African countries, including Kenya, Ethiopia, Namibia, and Tanzania, employing over 18,000 individuals.
Coca-Cola stock lost more than 3% in the last 12 months. Investors can&nbsp;gain access to&nbsp;the stock via&nbsp;Vanguard Total Stock Market Index Fund ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and&nbsp;IShares U.S. Consumer Staples ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYK#NYSE">IYK</a>).
Read Next:<a target="_blank" href="https://www.benzinga.com/news/24/04/38142749/food-giants-pivot-to-discounts-and-new-sizes-amid-decreased-spending-by-low-income-americans" rel="noreferrer noopener">&nbsp;Food Giants Pivot To Discounts And New Sizes Amid Decreased Spending by Low-Income Americans</a>
Price Action: KO shares are trading lower by 0.47% at $61.75 in premarket at&nbsp;the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Coca-Cola Contemplates $8B IPO For African Bottling Unit: Report

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/11/28/final-trades-halliburton-carlyle-more.html">Halftime Report Final Trades</a>,&quot; Joshua Brown of Ritholtz Wealth Management said The Carlyle Group Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cg#NASDAQ">CG</a>) may have bottomed.
They have a new CEO, who is highly respected, he explained, adding, &quot;I am hoping for a better 2024&quot; <a href="https://www.benzinga.com/markets/equities/23/11/35877637/mcdonalds-expands-stake-in-china-acquires-carlyles-stake-in-mcdonalds-china"> from Carlyle.</a>
Carlyle Group, now under the helm of&nbsp;Harvey Schwartz, will replace ICU Medical in the S&amp;P MidCap 400, effective prior to the open of trading on Nov. 30.
Jim Lebenthal of Cerity Partners named The Boeing Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) as his final trade.
RBC Capital analyst Ken Herbert upgraded Boeing from Sector Perform to Outperform and raised the price target from $200 to $275.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Shannon Saccocia of Boston Private picked iShares US Consumer Staples ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyk#NYSE">IYK</a>).
Stephanie Link of Hightower likes Halliburton Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hal#NYSE">HAL</a>), which is down 5% year-to-date.
Halliburton recently reported mixed financial results for the third quarter. The company reported quarterly revenue of $5.804 billion, missing the consensus of $5.855 billion. 
Price Action:
<ul>
<li>Carlyle shares gained 4.9% to close at $34.43.</li>
<li>Boeing shares rose 1.4% to settle at $222.37 on Tuesday.</li>
<li>iShares US Consumer Staples ETF gained 0.3%.</li>
<li>Halliburton fell 0.5% to settle at $37.52 during Tuesday&rsquo;s session.</li>
</ul>
Now Read: <a href="https://www.benzinga.com/news/earnings/23/11/35994419/dollar-tree-salesforce-and-3-stocks-to-watch-heading-into-wednesday">Dollar Tree, Salesforce And 3 Stocks To Watch Heading Into Wednesday</a>

Long Ideas

Boeing, Halliburton, Carlyle Group And More: CNBC's 'Final Trades'

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/11/10/final-trades-live-nation-bitcoin-consumer-staples-more.html">Halftime Report Final Trades</a>,&quot; Stephen Weiss of Short Hills Capital Partners named Bitcoin&nbsp;(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) <a href="https://www.benzinga.com/markets/cryptocurrency/23/11/35742072/solana-hits-new-annual-high-at-58-analyst-predicts-ethereum-killer-could-skyrocket-to-1-00">as his final trade.</a>
Bitcoin prices traded above the $37,000 mark after reports that&nbsp;BlackRock Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/blk#NASDAQ">BLK</a>), the world&rsquo;s top asset manager, revealed it is planning to create an exchange-traded fund (ETF) <a href="https://www.benzinga.com/markets/cryptocurrency/23/11/35741658/bitcoin-ethereum-dogecoin-rally-keeps-weekend-momentum-intact-analyst-sees-apex-crypto-fla">with a focus on purchasing ETH</a>.
Jenny Harrington of Gilman Hill Asset Management said New York Community Bancorp, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nycb#NYSE">NYCB</a>) has a 7.5% dividend yield.
New York Community reported better-than-expected earnings for the third quarter.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Josh&nbsp;Brown of Ritholtz Wealth Management named Live Nation Entertainment, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lyv#NYSE">LYV</a>), which has been consolidating since July.
Live Nation Entertainment reported better-than-expected third-quarter revenue results. 
Shannon Saccocia of Boston Private picked iShares US Consumer Staples ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyk#NYSE">IYK</a>)
Price Action: New York Community Bancorp shares gained 1.4% to close at $9.30, while Live Nation Entertainment shares rose 1.6% to settle at $87.52 on Friday. iShares US Consumer Staples ETF gained 0.4% during Friday&rsquo;s session.
Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/11/35724724/over-13m-bet-on-this-energy-stock-check-out-these-4-stocks-insiders-are-buying"> Over $13M Bet On This Energy Stock? Check Out These 4 Stocks Insiders Are Buying</a>
Photo: Shutterstock

$BTC

NYCB

Bitcoin, New York Community Bancorp, Live Nation Entertainment And More On CNBC's 'Final Trades'

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/10/20/final-trades-microsoft-uber-more.html">Halftime Report Final Trades</a>,&quot; Shannon Saccocia of Boston Private named iShares US Consumer Staples ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/iyk#BATS">IYK</a>),&nbsp;<a href="https://www.benzinga.com/trading-ideas/long-ideas/23/10/35348241/top-4-health-care-stocks-that-may-rocket-higher-this-month">as her final trade.</a>&nbsp;She said, &quot;There&#39;s an opportunity for margin recapture in this sector next year as inflation comes down.&quot;&nbsp;
Josh&nbsp;Brown of Ritholtz Wealth Management picked Uber Technologies, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>).
Uber Technologies is scheduled to report its third-quarter financial results on Nov. 7, 2023.
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Kevin Simpson of Capital Wealth said Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>) is up 6% since the last earnings report. The company reported upbeat top-and-bottom-line results. &quot;I like the stock,&quot; he noted.
KeyBanc analyst Michael Turits reiterated an Overweight rating on Microsoft with a price target of $400 ahead of its first-quarter earnings. The company is scheduled to report its quarterly earnings on Oct. 24, 2023. 
Stephen Weiss of Short Hills Capital Partners said he is staying short on iShares U.S. Home Construction ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/itb#NYSE">ITB</a>).
Price Action: Microsoft shares fell 1.4% to close at $326.67, while Uber gained 0.6% to settle at $42.96 on Friday.
Check This Out: <a href="https://www.benzinga.com/news/earnings/23/10/35344869/how-to-earn-500-a-month-from-at-t-stock-after-strong-earnings-report"> How To Earn $500 A Month From AT&amp;T Stock After Strong Earnings Report</a>
Photo: Shutterstock

iShares Dow Jones US Homenstruction Index Fund

MSFT

UBER

Uber Technologies, Microsoft And More On CNBC's 'Final Trades'

On CNBC&rsquo;s &quot;<a href="https://www.cnbc.com/video/2023/10/02/final-trades-crowdstrike-doordash-more.html">Halftime Report Final Trades</a>,&quot; Shannon Saccocia of Boston Private named iShares US Consumer Staples ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyk#NYSE">IYK</a>) <a href="https://www.benzinga.com/news/earnings/23/10/35048512/investor-fear-eases-slightly-us-manufacturing-pmi-tops-estimates"> as her final trade. </a>
Brian Belski of BMO Capital Markets picked DoorDash, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dash#NASDAQ">DASH</a>).
DoorDash, Uber Technologies, and Just Eat Takeaway.com-owned Grubhub Inc now face a mandate to pay food delivery workers a minimum of $17.96 per hour after their efforts to overturn the New York City minimum wage were unsuccessful.
Benzinga&#39;s analyst rating data shows a consensus <a href="https://www.benzinga.com/quote/DASH/analyst-ratings">Neutral rating on DoorDash.</a>
<img alt="" src="https://www.benzinga.com/files/u449135/dash2.jpg" style="height:121px; width:623px" />
Don&rsquo;t forget to check out our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> 
Stephen Weiss of Short Hills Capital Partners named&nbsp;SPDR S&amp;P Homebuilders ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xhb#NYSE">XHB</a>) as his final trade.
Joseph Terranova of Virtus Investment Partners picked&nbsp;CrowdStrike Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crwd#NASDAQ">CRWD</a>).
CrowdStrike Holdings recently announced the launch of cybersecurity&#39;s first zero-code application development platform.
Price Action: CrowdStrike shares gained 1.3% to close at $169.54, while DoorDash slipped 0.04% to settle at $79.44 on Monday. SPDR S&amp;P Homebuilders ETF fell 1.2% to $75.63 on Monday.
Check This Out: <a href="https://www.benzinga.com/news/earnings/23/10/35050630/mccormick-delta-apparel-and-3-stocks-to-watch-heading-into-tuesday"> McCormick, Delta Apparel And 3 Stocks To Watch Heading Into Tuesday </a>
Photo: Shutterstock

CRWD

DASH

CrowdStrike, DoorDash And 2 ETFs: CNBC's 'Final Trades'

I continue to receive questions regarding the agonizing decline for the Consumer Staple Index in 2018 (we have no stake). As of this writing, consumer staples stocks are down -11.9% year to date as measured by the iShares Consumer Staples ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/iyk#NYSE">IYK</a>). Just for general knowledge, the main constituents of the index are Pepsi (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pep#NASDAQ">PEP</a>), Coca-Cola (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ko#NYSE">KO</a>), Procter &amp; Gamble (NYST: PG), Walmart (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wmt#NYSE">WMT</a>), and Costco (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/cost#NASDAQ">COST</a>). These are high-quality names that everyone is likely familiar&nbsp;with.&gt;
The Consumer Staples Index is garnering attention due to its weakness on an absolute basis, but even more so as compared to the Consumer Discretionary Index. Here&#39;s a relative price chart which shows discretionary vs. staple&nbsp;stocks.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*QmTcE_9k_J4Q6Wka.jpg" /></figure>
We track this relationship in our internal Avory Weekly Book as it is visible evidence of investor psychology. In August/September of 2017 discretionary stocks roared higher relative to staple names. This all-time high in the relative ratio was an internal bullish indicator for equities more broadly and has sustained its&nbsp;move.
Given the rapid move higher, many are calling for this ratio to mean revert. While statisticians could have a suitable argument, I wanted to look under the hood from a valuation perspective. The chart below highlights the relative forward PE ratio of discretionary companies to staples. To be clear, this is a relative valuation chart, while above is a relative price chart. The yellow line is the median forward PE since 1990, and the red line indicates the upper bound of normal readings. Therefore, while the price chart does highlight a parabolic move higher since 2017, the valuation reading suggests that a mean reversion may have already taken place on a valuation basis.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*qPt1Xc3hFx-8Um5k.jpg" /></figure>
To go a step further, I wanted to show the absolute valuations for both sectors. First, let&#39;s start with the discretionary sector. In 2016 the sector was hitting the lower bound of reasonable valuations, suggesting that the sector may have been outright cheap at the time. Since then, valuations have migrated back towards the yellow median line since&nbsp;1990.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*FxFyl4Ua3Dn3j7p7.jpg" /></figure>
In comparison, consumer staples were hitting all-time high valuations in 2016 and have reverted lower to its median line since&nbsp;1990.
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/0*uG-7yJR8qqIVCFZD.jpg" /></figure>
To conclude, it is evident that the relative price chart of discretionary companies to staple companies may seem stretched by most observers. However, digging a little deeper I would say that the move seemed warranted if median valuations mean anything to you as an investor. With the relative valuation measure now back at median levels, the next move is unclear and will likely be dictated by operating performance.
Disclaimer: This is not a recommendation for purchase or sale of any securities. Avory does not own any of the securities listed above. This was also posted on See It Market.&nbsp;Avory &amp; Co. Is a registered investment adviser. Information presented is for educational purposes only. Please see full disclaimer <a href="http://www.avory.xyz/disclaimer-page">here</a>.
This article was originally published in <a href="http://medium.com/avory-co/staples-must-come-back-65b98f295b52">Avory &amp; Co on Medium</a>, where people are continuing the conversation by highlighting and responding to this story.<img height="1" src="https://medium.com/_/stat?event=post.clientViewed&amp;referrerSource=full_rss&amp;postId=65b98f295b52" width="1" />
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/05/11746303/giving-consumer-staples-etfs-another-chance">Giving Consumer Staples ETFs Another Chance</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/05/11733408/barclays-finds-coca-colas-stock-refreshing-as-consumer-">Barclays Finds Coca-Cola&#39;s Stock Refreshing As Consumer Staples Industry Suffers</a>

Futures

Technicals

Select Sector SPDR-Consumer Discretionary

Consumer Staples Don't 'Have To Come Back'

The consumer staples sector and its corresponding exchange traded funds have been dependable to say the least in 2016. Just look at the iShares U.S. Consumer Goods ETF (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>), which has soared nearly nine percent over the past 90 days and recently touched all-time highs.

	Naysayers will assert several things about an equity market rally that involves leadership from a boring sector such as consumer staples. As it pertains to 2016, the are likely to assert that staples are rate-sensitive, thereby getting a boost from the Federal Reserve&#39;s reluctance to raise interest rates. They would be correct.

	Critics would probably also say the <a href="http:// http://www.benzinga.com/trading-ideas/long-ideas/16/03/7703527/old-reliable-with-this-staples-etf">low volatility factor&#39;s leadership</a> is lifting staples and that the sector is again richly valued relative to the broader market. Right and right, but those arguments do not mean an ETF such as IYK cannot deliver more upside.

	&ldquo;Tailwinds for defensives are still in place: Still low interest rates, high uncertainty about the economy&rsquo;s strength, weakness from abroad, and a relatively strong dollar &mdash;&nbsp;even if its relative appreciation has slowed amid dovish commentary from Federal Reserve Chairman Janet Yellen,&rdquo; according to<a href="https://www.blackrockblog.com/2016/04/19/sectors-follow-q2/"> a recent BlackRock note</a>.

	Three of the 22 members of the Dow Jones Industrial Average that are higher on a year-to-date basis, are considered consumer staples stocks. Two &ndash; Coca Cola Co. (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and Procter &amp; Gamble Co. (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) &ndash; are IYK&#39;s two largest holdings combining for over 18 percent of the ETF&#39;s weight.

	&ldquo;Morningstar&#39;s equity analysts believe that what drove staples firms&#39; performance last year is the same dynamic that has fueled their valuations during the ultralow-interest-rate environment of the past few years: The sector&#39;s healthy dividends have captured&nbsp;the interest of income-seeking investors,&rdquo; said <a href="http://news.morningstar.com/articlenet/article.aspx?id=744957">Morningstar</a> in a recent note.

	IYK&#39;s trailing 12-month dividend yield of 2.15 percent is 30 basis points above yesterday&#39;s closing yield on 10-year Treasurys.

	&ldquo;Also, <a href="http://www.investopedia.com/terms/s/sharerepurchase.asp">share buybacks</a> are at notably high levels. Defensive mainstay consumer staples along with technology (technically not a defensive) has accounted for more than half of the recent buybacks, meaning their prices may be supported. (In other words, prices are presumably supported due to supply-and-demand dynamics. Fewer shares available means people pay more to get them,&rdquo; adds BlackRock.

	IYK devotes over half its weight to food, beverage and tobacco stocks. Makers of household and personal products account for over 18 percent of the ETF&#39;s weight.

Don't Ditch Defensive ETFs In Q2

With the recent erosion in the healthcare sector, just one of the nine sector SPDR exchange traded funds is sporting a year-to-date gain and a modest one at that. Congratulations to the Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>) for heading into Wednesday with a 2015 gain of 1.3 percent.

	Sticking with the consumer theme, the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) is the next best/least bad of the nine SPDRs with a year-to-date loss of 1.7 percent. In volatile times like these, the iPath S&amp;P 500 VIX Short-Term Futures ETN (NYSE: <a class="ticker" href="/stock/vxx#NYSE">VXX</a>) is up more than 33 percent over the past 90 days, staples stocks and ETFs can provide some (emphasis on &quot;some&quot;) comfort<a href="http://www.benzinga.com/trading-ideas/long-ideas/15/07/5724597/i-like-coffee-i-like-tea-i-like-what-this-staples-etf-does-fo">&nbsp;to beleaguered investors</a>.

	As a slow-moving sector prized more for predictably than growth, consumer staples stocks are usually favored by long-term, buy-and-hold investors. The sector has rewarded those investors&#39; faith. Over the past five decades, staples was the second-best sector, but on a risk-adjusted basis, staples was the best, according to <a href="http://news.morningstar.com/articlenet/SubmissionsArticle.aspx?submissionid=213230.xml">Morningstar</a>.

	Related Link:<a href="http://www.benzinga.com/general/biotech/15/09/5871030/small-cap-healthcare-etf-a-baby-thrown-out-with-the-bathwater"> Small-Cap Healthcare ETF: A Baby Thrown Out With The Bathwater</a>

	Focusing on more recent time frame, XLP has returned 41.5 percent over the past three years, beating the S&amp;P 500 by 270 basis points while being 120 basis points less volatile than the U.S. benchmark index.

	&quot;In addition to producing the second-highest return, consumer staples has had the second-lowest volatility of any market sector since 1962, meaning it has produced more consistent returns from one year to the next. This is likely driven by the more consistent nature of the demand for everyday staples items such as toothpaste and diapers, which people tend to buy in similar amounts regardless of the ups and downs of the economy. Because of this, investments in consumer staples have tended not to lose as much during bear markets as investments in other sectors. And during the past 50 years, consumer staples has experienced fewer bear markets (a correction of more than 20%) than the broad stock market overall, and is tied with utilities for the fewest bear markets of any equity sector,&quot; according to Morningstar.

	Other metrics highlight the stability of consumer staples ETFs. For example, the iShares U.S. Consumer Goods ETF (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>) has a three-year standard deviation of 10.3 percent, just above the 9.55 percent found on the iShares Core S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/ivv#NYSE">IVV</a>), <a href="http://www.ishares.com/us/products/239505/ishares-us-consumer-goods-etf">according to iShares data</a>.

	Staples&#39; reputation for being one of the least volatile sectors explains why the group is a backstop in some of the most <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5786867/how-good-is-the-shelter-from-the-storm-provided-by-low-volati">popular low volatility ETFs</a>. The PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) has a consumer staples weight of 22.2 percent, that ETF&#39;s second-largest sector allocation. The iShares MSCI USA Minimum Volatility ETF (NYSE: <a class="ticker" href="/stock/usmv#NYSE">USMV</a>) has a 14.7 percent staples weight, its fourth-largest sector allocation.

	&quot;Additional volatility in global economies, interest rates, and currencies could drive investor uncertainty and would likely benefit the sector, which has historically been an attractive target in a flight to safety. In any event, consumer staples should continue to benefit from its reputation for steady growth, dividend income, and low volatility,&quot; adds Morningstar.

PowerShares S&P 500 Low Volatility Portfolio

SPLV

USMV

Barclays Bank iPath S&P 500 VIX Short-Term Futures ETN

It's Tempting To Consider Consumer Staples ETF Right Now

Speaking to Benzinga, Sanford Bernstein analyst Ali Dibadj said that a rumor coming from The Wall Street Journal that 3G Capital Partners is <a href="http://www.benzinga.com/news/15/01/5125552/3g-capital-may-be-targeting-deals-for-pepsi-campbell-soup-wall-street-journal">interested in acquiring</a> food and beverage companies including PepsiCo, Inc.&nbsp;(NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) is not new thinking about 3G&rsquo;s strategy.

	&ldquo;They could cut significant costs in the business, which is quite global,&rdquo; he said.

	PepsiCo was recently trading at $95.32, up 2.4 percent.

	ETFs holding PepsiCo, including the Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>) and the iShares Dow Jones US Consumer Goods (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>), are trading up more than 1 percent.

Rumors

Exclusives

Sanford Bernstein Analyst On PepsiCo Rumor: 'This Is Not New Thinking About 3G's Strategy'

Speaking to Benzinga, Morningstar analyst Adam Fleck said that a partnership between The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) and WhiteWave Foods Co (NYSE: <a class="ticker" href="/stock/wwav#NYSE">WWAV</a>) would make sense.

	Earlier Monday, Barron&#39;s published a <a href="http://www.benzinga.com/news/14/12/5100025/whitewave-trades-higher-amid-barrons-post-on-coca-cola-partnership">blog </a>saying a combination of the companies would be &quot;too good to ignore.&quot;&nbsp;

	Fleck explained that Coca-Cola has shown its willingness to expose itself to higher growth areas through partnerships with Keurig Green Mountain Inc&nbsp;and Monster Beverage Corp.

	He also pointed out that Coca-Cola has been &ldquo;aiming at different aisles within the grocery store&rdquo; with both a new milk product, its naturally-sweetened Coca-Cola Life and water products like Vitamin Water.

	&ldquo;I think they&rsquo;re continually trying to find different ways to reach the end consumer,&rdquo; he said. &ldquo;From that standpoint, this probably would make some sense.&rdquo;

	WhiteWave has also enjoyed strong growth, Fleck explained, especially than the growth seen in soft drinks, which have been in a &ldquo;difficult&rdquo; situation for the past decade.

	Shares of WhiteWave were recently up 1.75 percent at $35.55. Coca-Cola shares were up less than 1 percent.

	The only reason Fleck would think of why this partnership might not have already happened is that Coca-Cola has been busy with other initiatives.

	&ldquo;There&rsquo;s a lot of moving parts going on at Coke,&rdquo; he said. &ldquo;It&rsquo;s not, by any stretch, a boring business. So I can only imagine that these things take time.&rdquo;

	The iShares Dow Jones US Consumer Goods (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>) and PowerShares Exchange-Traded Fund Trust (NYSE: <a class="ticker" href="/stock/pxlg#NYSE">PXLG</a>) ETFs, both holders of Coca-Cola, were trading up less than 1 percent Monday.

PXLG

WWAV

Morningstar Analyst Says Coca-Cola, WhiteWave Partnership Would Make Sense

ETF Outlook for Friday, March 21, 2014

	SPDR Financial ETF (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>)

	Late yesterday the results for the annual stress test for big U.S. banks were released and 29 out of 30 have enough capital to weather a severe jolt from the economy. The only bank to fail was Zions Bancorp (NYSE: <a class="ticker" href="/stock/zion#NYSE">ZION</a>).

	Some of the big name banks were at the bottom of the list, however they all passed. XLF is a basket of some of the largest names in the sector and yesterday it closed up 1.6 percent at the best closing level since 2008. The volume Thursday on the breakout rally was the highest in six weeks, which is a bullish signal for the chart. Support for XLF is at the $21.75 area.

	iShares U.S. Consumer Goods ETF (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>)

	After the bell yesterday Nike (NYSE: <a class="ticker" href="/stock/nke#NYSE">NKE</a>) reported better than anticipated earnings and the stock jumped nearly two percent on the news. The move was enough to push the stock to a new all-time high. Even though the news was stock specific, it could be a boost to entire consumer goods sector. IYK calls NKE its eighth largest holding with a three percent position.

	See also: <a href="http://www.benzinga.com/etfs/broad-u-s-equity-etfs/14/03/4405472/of-janet-yellen-dot-plots-and-definitions">Of Janet Yellen, Dot Plots And Definitions</a>

	The largest holding in the ETF is Proctor &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>), which has been struggling lately. The SPDR Consumer Discretionary ETF (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>) also has 3 percent of its portfolio in NKE, but it is the tenth largest holding in the allocation. Both ETFs could be on the move today based on the earnings report.

	iShares U.S. Telecommunications ETF (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>)

	A sector that has been overlooked by most investors for the last decade has been the telecom stocks. As investors shy away from the sector it has been steadily moving higher since bottoming in 2008. A 1.6 percent rally yesterday has the stock at the best level since late 2007 looking strong once again.

	The 2.5 percent dividend yield is attractive in a low-rate environment and is another factor for investors to consider the ETF. The three largest holdings are AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Verizon Communications (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) and Crown Castle Intl (NYSE: <a class="ticker" href="/stock/cci#NYSE">CCI</a>). The three stocks account for 30 percent of the portfolio.

	Global X SuperIncome Preferred ETF (NYSE: <a class="ticker" href="/stock/spff#NYSE">SPFF</a>)

	A basket of 50 of the highest yielding preferred stocks in the U.S. and Canada is breaking out of a consolidation pattern that has been forming for months. The little-known ETF has been a solid performer the last few months even though it has moved sideways due to a monthly dividend payment.

	The 12-month dividend yield is 7.4 percent, nearly three times the interest rate on the 10-year Treasury bond. Investors looking to generate above-average income without taking big risk have flocked to this ETF and the recent breakout will only generate more eyes on it.

Pre-Market Outlook

iShares Dow Jones US Telecommunications Sector Index Fund

SPFF

ZION

ETF Outlook For Friday, March 21, 2014 (XLF, IYK, IYZ, SPFF, NKE)

As reluctant as many investors may be to admit it, the leading sectors among U.S. stocks over the past three years are decidedly defensive. Meaning consumer staples, <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3447304/risk-on-rally-these-etfs-say-no">health care and utilities</a> have lead the market higher.

	However, the second-best performer of the nine sector SPDR ETFs has been the Consumer Discretionary Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xly#NYSE">XLY</a>). XLY and related ETFs represent the only somewhat risky sector funds that have been able to really keep pace with the likes of the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) and the iShares Dow Jones U.S. Healthcare Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyh#NYSE">IYH</a>) over the past three years.

	That stands to reason as discretionary stocks have rebounded on the back of improving consumer sentiment and confidence data along with improvements in the U.S. housing market. Discretionary ETFs have again been stellar performers this year. Year-to-date, XLY is up 14.2 percent while the rival Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vcr#NYSE">VCR</a>) is higher by 13.6 percent. The iShares Dow Jones U.S. Consumer Goods Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>), which is a mix of staples and discretionary names, has outpaced its rivals with a gain of 17.1 percent.

	That all sounds good, but investors may want to take a cautious approach to discretionary stocks and ETFs, particularly over the long-term. As iShares Chief Global Investment Strategist Russ Koesterich points out with regards to the U.S. consumer, "significant structural headwinds remain."

	"Specifically, most US households are still facing an environment of stagnant real income, an increasing dependency on two earners, a creaking entitlement system and inadequate personal savings," <a href="http://us.ishares.com/content/stream.jsp?url=/content/en_us/repository/resource/market_perspectives_may_2013.pdf">said Koesterich in his May Market Perspectives piece</a>. "All of which are likely to lead to a future in which consumption is a smaller portion of the economy than it has been over the past 70 years."

	Given the sharp out-performance of consumer-related shares relative to the broader universe of U.S. stocks over the past several years, it is not surprising that discretionary and staples names share something in common. That <a href="http://www.benzinga.com/news/earnings/13/04/3525682/staples-etfs-down-after-procter-gamble-misstep">being frothy valuations</a>. In the case of staples, the sector is often richly valued and it indicates that since 2010 investors have either doubted the rally or have been willing to pay up to play defense. The valuation issue is arguably more concerning with discretionary names.

	"While this is not unusual for the staples sector—a high return-on-equity (ROE) and defensive characteristics explain why this sector typically trades at a premium—it is not the norm for the consumer discretionary sector," said Koesterich. "Given the cyclical nature of this sector, consumer discretionary stocks have normally sported valuations that are, on average, in line with the broader market. Today, however, the sector is trading at a 65% premium to the S&amp;P 500, by far the largest premium going back to 1995."

	At the ETF level, XLY currently sports a P/E ratio of nearly 17.5 and a price-to-book ratio 3.63, <a href="https://www.spdrs.com/product/fund.seam?ticker=XLY">according to State Street data</a>. IYK, perhaps due to its exposure to staples stocks, is even pricier with a <a href="http://us.ishares.com/product_info/fund/overview/IYK.htm?fundSearch=true&amp;qt=IYK">P/E of 20.8 and a price-to-book ratio of 6.47</a>.

	Underscoring the potential vulnerability faced by discretionary stocks going forward is sub-par U.S. consumption and income growth trends. Clearly, betting against ETFs such as VCR and IYK over the past several years has proven foolhardy, but current valuations are implying the arrival of economic data the U.S. economy may not be able to deliver on.

	"What is surprising is the magnitude and consistency of the outperformance (of discretionary stocks)," said Koesterich. "To say that the advance has gotten ahead of the fundamentals is an understatement. Today, by most metrics the sector looks extremely expensive. Investors have effectively discounted a normalization in consumption patterns that may never happen.

	"Valuations at these levels imply a much faster rate of consumption and income growth than we are likely to see. As a result, we would stick with our cautionary stance on the consumer sectors, particularly the more discretionary companies."

	In the essence of fairness, it should be noted that IYK, VCR and XLY are all trading within pennies of new 52-week highs Wednesday. Then again, that does not mean the party will last forever.

	For more on consumer ETFs, click <a href="http://www.benzinga.com/news/earnings/13/04/3525682/staples-etfs-down-after-procter-gamble-misstep">here</a>.

Short Ideas

Retail Sales

Economics

Intraday Update

iShares Trust Dow Jones US Healthcare Sector Index Fund

Causes For Concern With Discretionary Stocks, ETFs

Shares of Dow component Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>), the world's largest consumer products company, are plunging by more than 4.5 percent Wednesday after the company forecast fiscal fourth-quarter earnings of 69 to 77 cents a share, below the 82 cents analysts are expecting.

	Emerging markets weakness is one reason for the disappointing outlook and while P&amp;G's third-quarter results beat Wall Street estimates, revenue was light at $20.598 billion. Analysts expected $20.73 billion and the EPS beat appears attributable to cost savings more than other factors.

	P&amp;G's Wednesday woes have trickled over to rivals such as Colgate-Palmolive (NYSE: <a class="ticker" href="/stock/cl#NYSE">CL</a>), Kimberly-Clark (NYSE: <a class="ticker" href="/stock/kmb#NYSE">KMB</a>) and Clorox (NYSE: <a class="ticker" href="/stock/clx#NYSE">CLX</a>). Shares of Colgate-Palmolive are lower by more than two percent while Kimberly-Clark is off 1.2 percent. Clorox is down nearly 1.7 percent.

	Predictably, those glum performances are weighing on consumer staples ETFs a group of funds that have been market leaders <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3447304/risk-on-rally-these-etfs-say-no">for not just this year</a>, but three years.

	The Consumer Staples Select SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) is down nearly 1.1 percent Wednesday, not surprising given that the ETF allocates 13.9 percent of its weight to P&amp;G. Colgate-Palmolive is also a top-10 XLP holding with a weight of 3.4 percent. Kimberly-Clark and Clorox combine for about 3.6 percent of XLP's weight.

	The Vanguard Consumer Staples ETF (NYSE: <a class="ticker" href="/stock/vdc#NYSE">VDC</a>) is off by about one percent. VDC, XLP's chief rival, allocates 12.1 percent to P&amp;G and 3.4 percent to Colgate-Palmolive. Kimberly-Clark is that ETF's eleventh-largest holding.

	The iShares Dow Jones U.S. Consumer Goods Sector Index Fund (NYSE: <a class="ticker" href="/stock/iyk#NYSE">IYK</a>) is down 0.83 percent. That ETF devotes about 12.3 percent to P&amp;G and 2.9 percent to Colgate-Palmolive. IYK, which has more of a discretionary feel to it than XLP or VDC by virtue of allocations to stocks such as Ford (NYSE: <a class="ticker" href="/stock/f#NYSE">F</a>) and Nike (NYSE: <a class="ticker" href="/stock/nke#NYSE">NKE</a>), allocates a combined 2.9 percent of its weight to Kimberly-Clark and Clorox.

	While today's performances for XLP and friends do not qualify as deep pullbacks, it is worth noting these funds remain pricy on a valuation basis. XLP has a P/E ratio of 17.78 and a price-to-book ratio of 3.88, <a href="https://www.spdrs.com/product/fund.seam?ticker=XLP">according to State Street data</a>. IYK trades at almost 21 times earnings with a price-to-book ratio of 6.47, <a href="http://us.ishares.com/product_info/fund/overview/IYK.htm">according to iShares data</a>.

	By comparison, the SPDR S&amp;P 500 sports a P/E of just over 14 and a price-to-book ratio of 2.25.

	Indeed, staples ETFs do look pricey compared to the broader market and higher growth sectors such as technology. The Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) has a P/E of just over 13, but there a case can be made that Wednesday's declines in staples ETFs are just a blip before the funds and their constituents continue to grind higher.

	Investors have shown a willingness to pay up to play defense over the past few years. That has translated to an overt love affair with low volatility/low beta sectors and ETFs. Additionally, slumping commodities prices <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3465648/staples-etfs-rally-heres-why-it-can-continue">could be another positive catalyst for staples stocks and ETFs</a>. Bottom line: P&amp;G and friends may be down Wednesday, but they certainly are not out.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Comments

iShares U.S. Consumer Staples ETF

Notizie

Ultime notizie per iShares U.S. Consumer Staples ETF (ARCA:IYK)

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO