Monday, May 23, 2011

7 Brand-Name Consumer Stocks to Sell

These big names have posted poor earnings and even poorer returns

On a day when the Dow Jones Industrial Average tumbled more than 100 points, many retail stocks gained after reporting same-store sales that blew away even analysts’ optimistic estimates.
With April consumer confidence rising more than expected, it seems things are going pretty well in the sector. Yet it’s not all roses for some very popular consumer stocks. In fact, many big names have posted poor earnings and even poorer returns for investors. And this during a time when theConsumer Discretionary Select Sector SPDR (NYSE: XLY) is up 4.72% year to date and 18% in the past 12 months.

Toyota Motor Corp. (TM)

Since the middle of February, Toyota Motor Corp. (NYSE: TM) has dropped 15%, compared to a gain of 3% for the Dow.  Analysts are also projecting earnings to drop to 64 cents this quarter, after the automaker posted an EPS of $1.09 last year. Quarterly earnings growth of -39% year over year and quarterly revenue growth of -12% in its last income statement are two more reasons to sell TM stock.

Nike Inc. (NKE)

Sporting apparel giant Nike Inc. (NYSE: NKE) has watched its stock value drop 4% since the start of 2011. Investors are still reeling from one day of trading in March, in which NKE stock dropped 9%. Although the stock has recovered slightly from its March low, it is currently, trading $10 below its 52-week high of $92.49.

Target Corp. (TGT)

Shares of Target Corp. (NYSE: TGT) rallied 2% yesterday, after the company reported April same-store sales comps of 13.1%. However, Wall Street was expecting 13.2%, and the stock is down a staggering 17% year to date, compared to gains by the broader markets. Things aren’t much better in the long term, as TGT stock has dipped 8.5% in the last 12 months.

Carnival Corp. (CCL)

Despite gains toward the end of 2010, cruise and vacation company Carnival Corp. (NYSE: CCL) has dropped 8% in the last 12 months. Year to date, CCL stock has fallen a startling 12.5%. Earnings wise, experts are projecting EPS to miss last year’s mark by 9 cents.

Sony Corp. (SNE)

Electronics developer and manufacturer Sony Corp. (NYSE: SNE) has posted a loss of 23% in 2011. In the last 12 months, SNE is down 18%, as well. Looking at Sony’s last income statement, quarterly earnings growth of -9% and quarterly revenue growth of -1% aren’t encouraging for potential investors.

Best Buy Co. (BBY)

Electronics retail giant Best Buy Co. (NYSE: BBY) has seen its stock plummet 26% since last May. More recently, this blue chip is down 10% since the start of 2011. In BBY’s last income statement, potential investors will find quarterly earnings growth of -16% and a quarterly revenue growth of -2%.

Campbell Soup Co. (CPB)

Campbell Soup Co. (NYSE: CPB) posted quarterly revenue growth of -1% and quarterly earnings growth of -8% in the company’s last income statement. Year to date, the stock is down 3%, and in the last 12 months, CPB has declined 5%.

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