JAH And SUMR: Two Consumer Goods Stocks Loved By Analysts
BOSTON (TheStreet) -- Consumer-goods makers are some of analysts' least favorite companies. Still, there are great investments in the sector. Here are two of researchers' top picks. Both are expected to outperform indices by wide margins.
2. Jarden (NYSE: JAH) makes niche consumer products, including plastic cutlery, matches, rope, twine, toothpicks and clothes pins. During the past three years, Jarden has increased revenue 10% annually, on average. It has a market value of $2.6 billion.
Quarter: Jarden swung to a first-quarter loss of $59 million, or 66 cents, from a profit of $8.9 million, or 12 cents, a year earlier. Revenue grew 4.4%. The operating margin widened from 5.6% to 5.9%. Jarden has $951 million of cash and $2.9 billion of debt.
Stock: Jarden has advanced 48% during the past year, outperforming U.S. indices. It trades at a price-to-projected-earnings ratio of 8.7, an 80% discount to its peer average. Its PEG ratio of 0.5 indicates a 50% discount to projected long-term growth.
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