Market Overview

Pro: Consumer Goods Stocks Surging In 'Clear Change' In Market Leadership

Pro: Consumer Goods Stocks Surging In 'Clear Change' In Market Leadership

Less exciting stocks like McCormick & Co (NYSE: MKC) and Clorox co (NYSE: CLX) are trading near their 52-week highs, and this marks a "clear change in leadership," according to Erin Gibbs, portfolio manager at S&P Global Market Intelligence.

What Happened

Growth stocks have lagged value stocks by a 2-to-1 margin since the beginning of the fourth quarter, and consumer staples and food stocks are among those moving higher, Gibbs said in a recent CNBC "Trading Nation" segment.  Looking forward to 2019, investors can continue investing in "high-flying tech names" at premium valuations or seek out "value players" that boast cheaper valuations and also offer higher return potential, she said. 

'Good Names' To Be Found

Mark Newton, a technical analyst with Newton Advisors, told CNBC  that consumer staple stocks as a whole have not only "held a much more defensive tone" but were the best-performing group over the past three months.

There is no guarantee this trend will continue through the typically bullish month of December, and staples stocks might "turn around" if the S&P 500 index trades above 2,750, he said. 

The consumer staples group has no shortage of good names, Newton said, mentioning Church & Dwight Co., Inc. (NYSE: CHD). The stock's chart dating back to January 2016 shows "very little sign of any deterioration" and also formed a "decent base" after breaking above the $55 level. The technicals on the chart suggest further upside to "at least the low $70s" in the weeks to come, he said. 

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