Consumer Defensive Sector: Value Investing Analysis
About the Consumer Defensive Sector
Companies that manufacture food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education and training services. Companies in this sector include Philip Morris International, Procter & Gamble, and Walmart.
The Consumer Defensive sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.
Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.
Consumer Defensive Stocks: Value Analysis
Below are the stocks we track in the Consumer Defensive sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
(FDO ) |
$0.00 | none |
| Alliance One International (AOI) |
$0.00 | none |
(ITYBY) |
$0.00 | none |
| B&G Foods (BGS) |
$3.73 | none |
| Coca-Cola European Partners plc (CCEP) |
$111.10 | none |
| Keurig Dr Pepper (KDP) |
$31.45 | none |
| Ingredion Incorporated (INGR) |
$101.74 | none |
| Chegg (CHGG) |
$1.08 | none |
| Coty (COTY) |
$2.73 | none |
| United-Guardian (UG) |
$7.13 | none |
| Universal Corporation (UVV) |
$54.80 | 16.7% |
| Coca-Cola European Partners plc (CCE) |
$0.00 | none |
| The Kroger Co. (KR) |
$59.87 | none |
| Invesco National AMT-Free Municipal Bond ETF (PZA) |
$22.89 | none |
| Campbell Soup Company (CPB) |
$22.96 | 26.6% |
| Costco Wholesale Corporation (COST) |
$974.03 | none |
(NAFC) |
$0.00 | none |
| Corteva (CTVA) |
$90.51 | none |
(ARDNA) |
$0.00 | none |
| Archipelago Learning (ARCL) |
$9.92 | none |
| Walmart (WMT) |
$114.22 | none |
| Ollie's Bargain Outlet Holdings (OLLI) |
$68.97 | none |
(SLE) |
$2.76 | none |
| Five Below (FIVE) |
$207.99 | none |
| Hormel Foods Corporation (HRL ) |
$25.56 | none |
| Sprouts Farmers Market (SFM) |
$77.77 | none |
| National Beverage Corp. (FIZZ) |
$32.54 | none |
| Colgate-Palmolive Company (CL) |
$92.73 | none |
| General Mills (GIS) |
$37.65 | none |
| The Procter & Gamble Company (PG) |
$146.10 | none |
| Zovio Inc (BPI) |
$20.61 | none |
| Dollar Tree (DLTR) |
$128.95 | none |
| Natural Grocers by Vitamin Cottage (NGVC) |
$32.98 | none |
| PepsiCo (PEP) |
$143.50 | none |
| Coca-Cola FEMSA, S.A.B. de C.V. (KOF) |
$107.04 | 71.2% |
| TAL Education Group (TAL) |
$10.89 | none |
| Lamb Weston Holdings (LW) |
$53.98 | none |
| Calavo Growers (CVGW) |
$26.09 | none |
| WINN DIXIE STORES (WINN) |
$31.36 | none |
| Danone SA (DANOY) |
$16.21 | none |
| Willamette Valley Vineyards (WVVI) |
$2.54 | none |
| The Clorox Company (CLX) |
$99.63 | none |
| Jones Soda Co. (JSDA) |
$0.32 | none |
| Alico (ALCO) |
$37.82 | none |
| Ecolab (ECL) |
$283.70 | none |
| Altria Group (MO) |
$74.92 | none |
| Archer-Daniels-Midland Company (ADM) |
$80.38 | none |
| The Estee Lauder Companies (EL) |
$84.13 | none |
| McCormick & Company, Incorporated (MKC) |
$51.99 | none |
| The J. M. Smucker Company (SJM) |
$126.35 | none |
| Tyson Foods (TSN) |
$61.04 | 15.5% |
| The Coca-Cola Company (KO) |
$89.08 | none |
| Constellation Brands (STZ) |
$131.75 | none |
| Sysco Corporation (SYY) |
$85.32 | none |
| Target Corporation (TGT) |
$145.90 | none |
| The Hershey Company (HSY) |
$183.91 | none |
How to Invest in Consumer Defensive Stocks
Sector-Specific Considerations
When evaluating Consumer Defensive companies, consider these key factors:
- Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
- Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
- Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
- Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
- Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.
✓ Sector Analysis Checklist
- Compare P/E ratios within the sector
- Look for strong free cash flow generation
- Assess debt levels relative to peers
- Evaluate dividend sustainability
- Check management track record
- Calculate margin of safety
Common Sector Pitfalls
- Chasing last year's hot sector
- Ignoring sector-wide headwinds
- Overpaying for market leaders
- Neglecting competitive threats
- Failing to diversify across sectors
- Not understanding the business model