Consumer spending climbed gradually in April, with consumers boosting their purchases at online stores and spending more at restaurants and bars, demonstrating resilience in the face of growing headwinds. Retail sales in the United States increased 0.4% in April 2023.
So, investors could consider buying quality consumer stocks Henkel AG & Co. KGaA (HENKY), Shiseido Company, Limited (SSDOY) and Acme United Corporation (ACU).
Oren Klachkin, lead US Economist at Oxford Economics, said, “The April retail sales report shows consumers remain inclined to spend though they are becoming more selective in their purchases.”
In addition, consumer packaged goods market is expanding with technological advancements. The consumer-packaged goods market is expected to grow at a CAGR of 3.5% until 2030.
Investors’ interest in consumer goods stocks is evident from the iShares U.S. Consumer Goods ETF’s (IYK) 1.4% returns over the past three months.
Let’s delve deeper into the fundamentals of the stocks mentioned above.
Henkel AG & Co. KGaA (HENKY)
Headquartered in Düsseldorf, Germany, HENKY together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide.
In terms of forward EV/EBIT multiple, HENKY is trading at 13.73 is 10.5% lower than the industry average of 15.34. In addition, HENKY’s forward EV/Sales of 1.51x is 9.3% lower than the industry average of 1.66x.
HENKY’s trailing-12-month net income margin of 5.62% is 78.2% higher than the industry average of 3.16%. Its trailing-12-month gross profit margin of 42.30% is 34.9% higher than the industry average of 31.36%.
HENKY’s sales increased 11.6% year-over-year to €22.40 billion ($24.14 billion) in the for the year ended December 31, 2022. Its gross profit increased 4.4% year-over-year to €9.37 billion ($10.09 billion).
Also, its total current assets came in at €10.43 billion ($11.23 billion) for the period that ended December 31, 2022, compared to €10.41 billion ($11.22 billion) for the period that ended December 31, 2021. Also, its current liabilities came in at €9.15 billion ($9.86 billion), compared to €9.27 billion ($9.99 billion) for the same period.
The consensus revenue estimate of $23.68 billion for the year ending December 2024 represents a marginal increase year-over-year. HENKY’s shares have gained 14% over the past nine months to close the last trading session at $18.38.
HENKY’s POWR Ratings reflect this promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
HENKY also has an A grade for Stability and a B for Growth. It is ranked #12 out of 51 stocks in the Consumer Goods industry. Click here for the additional POWR Ratings for Value, Sentiment, Momentum and Quality for HENKY.
