Coming out of the Consumer Analyst Group of New York (CAGNY) Conference, analysts at Morgan Stanley found reasons to remain cautious of the U.S. food sector, while they also noted continued support for Constellation Brands, Inc. (NYSE: STZ) as the top beverage and household pick.
Constellation Brands, up nearly 18 percent this year, is still at a “valuation discount to its peers,” despite having higher rates of growth. Morgan Stanley has an Over-weight rating on Constellation.
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27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
The analysts also recommended Estee Lauder Companies Inc (NYSE: EL) and Newell Rubbermaid Inc. (NYSE: NWL) with an Over-weight rating. Morgan Stanley said it likes Estee Lauder’s portfolio, which is more focused on “higher growth and higher return categories.” Newell Rubbermaid, on the other hand, will benefit from a large advertising spend and better product innovation, the analysts said.
Though cautious of the U.S. food sector, Morgan Stanley said it is most constructive on WhiteWave Foods Co (NYSE: WWAV) and Mondelez International Inc (NASDAQ: MDLZ), who will lead in delivering “topline growth and margin expansion, respectively.”