What are the top 20 Undervalued Stocks (selected over 5 market cap classes) in the Consumer Defensive Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page www.stockcalc.com/Welcome for some of the free lists and reports available.
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Undervalued Stocks – Consumer Defensive Sector
Today our focus is the Consumer Defensive sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The Consumer Defensive sector includes a variety of industries such as Beverages, Confectioners, Farm Products, Household & Personal Products, Packaged Foods, Education & Training Services, Discount Stores and Grocery Stores. These companies tend to have steady revenues and earnings through the economic cycles. The stocks are also held for their dividends.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Consumer Defensive
In the table below we can see the close price (Jan 22th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
| Symbol | Company Name | Close Price($) | Valuation ($) | Value/ Price | Class | Average Volume |
|---|---|---|---|---|---|---|
| STZ-N | Constellation Brands | 191.94 | 223.64 | 1.17 | Large Cap | 1695494 |
| MO-N | Altria Group | 51.03 | 57.50 | 1.13 | Large Cap | 7300053 |
| KR-N | Kroger | 28.37 | 30.80 | 1.09 | Large Cap | 4821759 |
| KO-N | Coca-Cola | 57.61 | 62.00 | 1.08 | Large Cap | 12869732 |
| MRU-T | Metro | 54.55 | 58.86 | 1.08 | Large Cap | 425624 |
| BJ-N | BJ’s Wholesale Club | 21.96 | 27.32 | 1.24 | Mid Cap | 1467748 |
| BG-N | Bunge | 55.88 | 62.88 | 1.13 | Mid Cap | 822653 |
| MFI-T | Maple Leaf Foods | 24.81 | 27.67 | 1.12 | Mid Cap | 291456 |
| SAFM-Q | Sanderson Farms | 152.98 | 167.52 | 1.10 | Mid Cap | 399574 |
| GSX-N | GSX Techedu | 35.25 | 38.29 | 1.09 | Mid Cap | 3643077 |
| CRESY-Q | Cresud SACIF | 6.12 | 10.99 | 1.80 | Small Cap | 238627 |
| UNFI-N | United Natural Foods | 7.88 | 12.07 | 1.53 | Small Cap | 1185633 |
| NUS-N | Nu Skin Enterprises | 38.05 | 56.30 | 1.48 | Small Cap | 804730 |
| MGPI-Q | MGP Ingredients | 38.33 | 54.04 | 1.41 | Small Cap | 277627 |
| SPTN-Q | SpartanNash | 13.13 | 18.09 | 1.38 | Small Cap | 131069 |
| BRID-Q | Bridgford Foods | 31.04 | 45.31 | 1.46 | Micro Cap | 58739 |
| TEDU-Q | Tarena International | 3.68 | 4.19 | 1.14 | Micro Cap | 1304351 |
| DL-N | China Distance Education | 8.79 | 9.85 | 1.12 | Micro Cap | 52257 |
| LFVN-Q | Lifevantage | 15.53 | 15.96 | 1.03 | Micro Cap | 67211 |
| DWS-X | Diamond Estates Wines | 0.22 | 0.23 | 1.06 | Nano Cap | 65214 |
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
Altria Group
https://www.altria.com
Altria Group Inc along with its subsidiaries is engaged in the manufacture and sale of cigarettes, machine-made large cigars, pipe tobacco, smokeless tobacco products and wine.
Bunge
http://www.bunge.com
Bunge Ltd is an agribusiness and food company with integrated operations. It acts as an oilseed processor and seller of packaged vegetable oils. The company also grows and processes Brazilian sugarcane to produce sugar and ethanol.
Tarena International
http://www.tedu.cn
Tarena International Inc through its subsidiaries provides professional education services in China. It offers courses in IT subjects, non-IT subjects and kid education programs.
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