BTIG Issues "Anti-Preview" On Consumer Staples With Short Term Convictions

BTIG issued a September-Q “Anti-Preview” on Wednesday.  The report expected a weak quarter with a short-term risk/reward for some stocks.

Analyst April Scee noted she believed September-Q estimates “are at risk...on (1) slower Asia & Latin America, (2) weak US mass market, (3) stalled European improvement; (4) strong dollar impacts.”

Stocks given a positive short-term conviction:

Colgate-Palmolive Company CL.  Scee believed the “slow end to Mar-Q was timing” and to “expect a rebound in Jun-Q organic growth despite slowing backdrop. This should be enough given poor sentiment.”

Estee Lauder Companies Inc. EL.  The report noted that the stock “ has traded off of levels seen ahead of strong Jun-Q reporting. Guidance anticipated FX moves, higher-end consumer remains strong and our outlook for key Christmas quarter remains strong.”

Unilever plc UL.  Scee saw that “strong margin performance [is] likely to continue, and recent divestitures shift [the] portfolio toward higher margin/growth business.

Stocks given a negative short-term conviction:

The Procter & Gamble Company PG. The report claimed that estimates are too high “as guidance assumed no change in Fx, competitive landscape, or category growth...all of which have weakened. And with no new news likely on Hundred Brand Purge, yet we fail to see a catalyst.”

The Clorox Company (NYSE CLX). The report concluded it has Issues with “post-exit from Venezuela, so $68 million of assets [are] unlikely to be sold and U.S. mass market growth likely slowed. The stock is expensive with low growth potential and”incremental issues could impact stock.”

Colgate-Palmolive Company recently traded at $65.19, up 0.45 percent.

Estee Lauder Companies Inc. recently traded at $73.98, down 0.22 percent.

Unilever plc recently traded at $40.79, down 0.92 percent.

The Procter & Gamble Company recently traded at $83.47, up 0.37 percent.

The Clorox Co. recently traded at $97.80, up 1.18 percent.