Yue Yuen Industrial Stock (OTC:YUEIY), Trade Ideas

Yue Yuen Industrial

YUE YUEN INDUSTRIAL

Yue Yuen Industrial (Holdings) Ltd is engaged in footwear businesses. The company operates in two reportable segments: Manufacturing Business and Retailing Business. Manufacturing Business contributes the majority of the revenue. Its products include athletic shoes, casual shoes, outdoor shoes, sports sandals, soles, components, and Apparel wholesale. The company operates in the United States, China, Europe, Asia, and Others.

YUE YUEN INDL UNSP/ADR by Yue Yuen Industrial (Holdings) Ltd

Yue Yuen Industrial (Holdings) Ltd

The consumer goods sector tends to perform relatively well, irrespective of market conditions. Also, given rebounding consumer sentiments, consumer goods stocks Unilever (UL) and Yue Yuen Industrial (YUEIY) could be worth buying this week. These stocks are A (Strong Buy) rated in our proprietary system. Read on... U.S. consumers sentiments rebounded in April as inflation continued to ease, with the University of Michigan's consumer sentiment index climbing to <a href="https://www.morningstar.com/news/dow-jones/2023042810581/us-consumer-sentiment-improved-in-april-as-inflation-cools-university-of-michigan">63.5 in April from 62.0 in March</a>. "Despite the increasingly negative news on business conditions heard by consumers, their short and long-run economic outlook improved modestly from last month," the survey's director Joanne Hsu said.
So, this could be the right time to scoop up consumer goods stocks Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>) and Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>). These stocks are A (Strong Buy) rated in our proprietary system.
Additionally, the global Consumer Packaged Goods (CPG) market is expected to expand at a <a href="https://finance.yahoo.com/news/consumer-packaged-goods-cpg-market-171824915.html">CAGR of 3%</a> until 2028. The iShares U.S. Consumer Goods ETF's (<a href="https://stocknews.com/stock/IYK/">IYK</a>) 5.1% returns over the past three months and 6% returns over the past six months indicate investors' confidence.
Despite the inflationary pressures and tighter credit conditions following recent financial market turmoil that have added to the risks of a recession this year, UL and YUEIY are expected to perform relatively well.
Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>)
UL, headquartered in London, is a fast-moving consumer goods company. It operates through the broad segments of Beauty &amp; Personal Care; Foods &amp; Refreshment; and Home Care.
On April 3, 2023, UL, Accenture (<a href="https://stocknews.com/stock/ACN/">ACN</a>), and Microsoft (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) completed a huge cloud conversion project for UL's 400+ consumer brands, according to reports. Through Azure's cloud platform, UL would be able to become a cloud-only organization, enhancing product launches, customer service, and operational efficiency.
In terms of trailing-12-month UL's ROCE of 42.31% is 300.4% higher than the 10.57% industry average. Likewise, its trailing-12-month levered FCF margin of 12.44% is 368.6% higher than the industry average of 2.65%.
UL has paid dividends for 12 consecutive years. Over the last five years, UL's dividend payouts have grown at a 1.2% CAGR. While UL's four-year average dividend yield is 3.48%, the company's annual dividend of $1.83 yields 3.36% at the current price level.
For the fiscal year that ended December 31, 2022, UL's turnover increased 14.5% year-over-year to €60.07 billion ($6.42 billion), with an underlying sales growth of 9%. Its operating profit increased 23.6% year-over-year to €10.76 billion ($11.50 billion).
Its net profit came in at €8.27 billion ($8.84 billion), up 24.9% from the previous year, and its <a href="https://www.investopedia.com/terms/e/eps.asp">EPS</a> increased 28.9% from the year-ago period to €2.99 for the same year.
The consensus revenue estimate of $68.34 billion for the year ending 2024 represents a 3.9% increase year-over-year. Its EPS is expected to grow 7.3% year-over-year to $3.03 in 2024. The stock has gained 21.4% over the past six months to close its last trading session at $55.53.
It's no surprise that UL has an overall A rating, equating to a Strong Buy in our <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
It also has a B grade for Value, Stability, and Sentiment. It is ranked four out of 54 stocks in the <a href="https://stocknews.com/category/consumer-goods/">Consumer Goods</a> industry. To access additional ratings for UL's Growth, Momentum, and Quality, click <a href="https://stocknews.com/stock/UL/">here</a>.
Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>)
Headquartered in Hong Kong's Kwun Tong, YUEIY is an investment holding firm that manufactures, markets and retails athletic, leisure, casual, and outdoor footwear. It also operates as an original design manufacturer for prominent brands like Puma, Nike, and Timberland, producing leather products, soles, and other components.
In terms of trailing-12-month YUEIY's levered FCF margin of 7.43% is 202.4% higher than the 2.46% industry average. Likewise, its trailing-12-month asset turnover ratio of 1.08x is 4.3% higher than the industry average of 1.04x.
While YUEIY's four-year average dividend yield is 3.48%, the company's annual dividend of $0.38 yields 5.07% at the current price level.
For the year that ended December 31, 2022, YUEIY's revenue increased 5.1% year-over-year to $8.97 billion, while its gross profit increased 4.3% from the year-ago value to $2.14 billion. Furthermore, the company's profit for the year rose 106.6% from the prior year's period to $293.20 million, and its EPS came in at $0.18, a 157.6% year-over-year increase.
Street expects YUEIY's revenue to increase 7.8% year-over-year to $9.92 billion in 2024. The stock has gained 42.2% over past six months to close the last trading session at $7.40.
YUEIY's POWR Ratings reflect its solid prospects. The stock has an overall A rating, translating to Strong Buy in our proprietary rating system.
It also has an A grade for Growth and Value and a B grade for Stability. It is ranked three out of 54 stocks within the same industry. <a href="https://stocknews.com/stock/YUEIY/">Click here</a> to see the additional ratings for YUEIY (Momentum, Sentiment, and Quality).
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UL shares were unchanged in premarket trading Monday. Year-to-date, UL has gained 11.27%, versus a 9.17% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rashmi Kumari</h2> <img src='https:/wp-content/uploads/2022/10/Rashmi-Kumari_headshot_2-1.jpg' style="float:left; padding:5px;width:125px;">Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.<a href="https://stocknews.com/authors/?author=rashmi-kumari">More...</a>The post <a href=https://stocknews.com/news/ul-yueiy-these-2-a-rated-consumer-goods-stocks-are-a-buy-for/>These 2 A-Rated Consumer Goods Stocks Are a Buy for This Week</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

These 2 A-Rated Consumer Goods Stocks Are a Buy for This Week

Amid the possibility of a recession later this year, the consumer goods sector is expected to perform relatively well. Amid this backdrop, it could be wise to buy fundamentally strong consumer stocks Unilever PLC (UL), Yue Yuen Industrial (YUEIY), and Edgewell Personal Care (EPC). These stocks are rated Buy in our proprietary rating system. Keep reading... Elevated inflation, a tight labor market, and tighter lending standards are adding to the concerns of the economy tipping into a recession. To that end, investors could look to buy fundamentally strong consumer stocks Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>), Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>), and Edgewell Personal Care Company (<a href="https://stocknews.com/stock/EPC/">EPC</a>). These stocks are Buy-rated in our <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system.
Before taking a closer look at their fundamentals, let's discuss why it could be wise to invest in the consumer goods sector.
Despite macroeconomic headwinds and growing concerns of a slowing economy, retail sales <a href="https://www.reuters.com/markets/us/us-retail-sales-miss-expectations-core-sales-strong-2023-05-16/">rose 0.4% in April</a>, and core sales increased 0.7%. Several economists expect consumer spending to support the economy despite rising recession risks.
Citigroup's chief U.S. economist, Andrew Hollenhorst, believes that this consumer spending report will help reassure markets that consumer spending is not about to contract, rather, it will support modest continued economic growth.
Amid recessionary fears, investing in sectors less prone to changes in economic cycles could be wise. The consumer goods industry performs steadily because of the inelastic demand for its products. Such companies are able to pass on high input costs to their customers, helping them maintain their profit margins.
Considering these factors, it could be wise to buy the featured stocks. Let's take a closer look at their fundamentals.
Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>)
Headquartered in London, the United Kingdom, UL operates as a fast-moving consumer goods company. It operates through Beauty &amp; well-being, Personal Care, Home Care, Nutrition, and Ice Cream segments.
In terms of forward non-GAAP <a href="https://www.investopedia.com/terms/p/price-earningsratio.asp">P/E</a>, UL's 18.49x is 0.8% lower than the 18.64x industry average. Likewise, its 15.20x forward EV/EBIT is 1.8% lower than the 15.47x industry average.
UL's turnover for the fiscal first quarter ended March 31, 2023, increased 7% year-over-year to €14.75 billion ($15.95 billion), with an underlying sales growth of 10.5%. Its underlying sales growth came in at 10.5%.
Its Beauty &amp; Wellbeing turnover rose 13.3% year-over-year to €3.09 billion ($3.34 billion). Also, its Home Care turnover increased 8.6% year-over-year to €3.35 billion ($3.62 billion).
Analysts expect UL's revenue for the quarter ending June 30, 2023, to increase 5.6% year-over-year to $16.93 billion. Its EPS for fiscal 2023 is expected to increase 2.6% year-over-year to $2.83. Over the past year, the stock has gained 19% to close the last trading session at $52.34.
UL's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
Within the <a href="https://stocknews.com/category/consumer-goods/">Consumer Goods</a> industry, it is ranked #5 out of 52 stocks. It has a B grade for Value, Stability, and Sentiment.
To see the additional POWR Ratings of UL for Growth, Momentum, and Quality, <a href="https://stocknews.com/stock/UL/">click here</a>.
Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>)
Headquartered in Kwun Tong, Hong Kong, YUEIY is engaged in manufacturing and sale of athletic, athleisure, casual, and outdoor footwear worldwide. The company operates as an original design manufacturer/original equipment manufacturer for various international brand names, such as adidas, Asics, New Balance, Nike, Salomon, and Timberland.
In terms of forward Price/Sales, YUEIY's 0.25x is 68.8% lower than the 0.81x industry average. Its 0.38x forward EV/Sales is 65.3% lower than the industry average of 1.10x. Likewise, its 4.23x forward EV/EBITDA is 54.5% lower than the 9.28x industry average.
YUEIY's revenue for the first quarter that ended March 31, 2023, came in at $2.11 billion. Its gross profit came in at $497.62 million. The company's profit for the period came in at $65.89 million.
Street expects YUEIY's revenue for the quarter ending December 31, 2023, to increase 30% year-over-year to $2.60 billion. Over the past six months, the stock has gained 14.2% to close the last trading session at $6.97.
YUEIY's positive outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.
It is ranked #6 in the same industry. It has an A grade for Growth and Value and a B for Stability. <a href="https://stocknews.com/stock/YUEIY/">Click here</a> to see the other ratings of YUEIY for Momentum, Sentiment, and Quality.
Edgewell Personal Care Company (<a href="https://stocknews.com/stock/EPC/">EPC</a>)
EPC manufactures and markets personal care products worldwide. It operates through three segments: Wet Shave, Sun and Skin Care, and Feminine Care.
In terms of forward non-GAAP P/E, EPC's 17.51x is 6.1% lower than the 18.64x industry average. Its 10.46x forward EV/EBITDA is 14.3% lower than the 12.20x industry average. Likewise, its 0.97x forward Price/Sales is 11.2% lower than the 1.09x industry average.
EPC's non-GAAP operating income increased 33.8% year-over-year to $62.50 million for the fiscal second quarter that ended March 31, 2023. The company's adjusted EBITDA increased 12.6% year-over-year to $83 million.
In addition, its non-GAAP net earnings increased 7.4% year-over-year to $29 million. Its non-GAAP EPS came in at $0.56, representing a 12% increase over the prior-year quarter.
EPC's EPS for the quarter ending December 31, 2023, is expected to increase 16.3% year-over-year to $0.36. Its revenue for the quarter ending June 30, 2023, is expected to increase 3.3% year-over-year to $644.45 million. Over the past year, the stock has gained 26.1% to close the last trading session at $42.87.
EPC's POWR Ratings reflect its solid prospects. It has an overall rating of B, equating to a Buy in our proprietary rating system. The stock is ranked #16 in the Consumer Goods industry.
The stock has a B grade for Growth and Value. <a href="https://stocknews.com/stock/EPC/">Click here</a> to see the additional ratings of EPC for Momentum, Stability, Sentiment, and Quality.
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UL shares were trading at $52.32 per share on Tuesday afternoon, down $0.02 (-0.04%). Year-to-date, UL has gained 5.75%, versus a 9.53% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Malaika Alphonsus</h2> <img src='https:/wp-content/uploads/2022/11/Malaika-Alphonsus_Headshot-1.png' style="float:left; padding:5px;width:125px;">Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research.

With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions.<a href="https://stocknews.com/authors/?author=malaika-alphonsus">More...</a>The post <a href=https://stocknews.com/news/ul-yueiy-epc-3-buy-rated-consumer-stocks/>3 Buy-Rated Consumer Stocks</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Buy-Rated Consumer Stocks

Consumer spending has remained steady lately, with declining inflationary woes. Therefore, it could be wise to invest in fundamentally strong consumer goods stocks Shiseido Company (SSDOY), Yue Yuen Industrial (YUEIY), and Acme United (ACU) now for solid returns. Keep reading… Despite several macroeconomic headwinds, consumer spending appears to be resilient. Furthermore, with improved consumer sentiment, numerous technological advancements, and rapid e-commerce expansion, the consumer goods industry is poised to experience robust growth.
In light of this, it could be wise to invest in quality consumer goods stocks Shiseido Company, Limited (<a href="https://stocknews.com/stock/SSDOY/">SSDOY</a>), Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>), and Acme United Corporation (<a href="https://stocknews.com/stock/ACU/">ACU</a>) now. Let's understand this in detail.
This year, there has been a steady decline in inflation. June's Consumer Price Index (CPI) increased by <a href="https://www.cnbc.com/2023/07/12/inflation-rose-just-0point2percent-in-june-less-than-expected-as-consumers-get-a-break-from-price-increases.html">3% from a year ago</a>, which is the lowest increase since March 2021. On a monthly basis, the index rose 0.2%.
In addition, consumer expenditures are holding up steadily. The Bureau of Economic Analysis reported <a href="https://www.bea.gov/news/2023/personal-income-and-outlays-may-2023">a modest 0.1% increase in consumer spending</a> in May. The core PCE price index rose 0.3% month-on-month while personal income increased 0.4% monthly.
In addition, consumer sentiment saw a notable upturn by the end of June, while short-term inflation expectations remained at their lowest level in over two years. The final June reading of the University of Michigan's <a href="https://www.bloomberg.com/news/articles/2023-06-30/us-consumer-sentiment-improves-further-michigan-report-shows#xj4y7vzkg">consumer sentiment index rose to 64.4</a>, rebounding from a May slump.
That said, the consumer goods industry prospects are further bolstered by the surge in e-commerce, which offers convenience, expanded choices, and competitive pricing. Consumer businesses are seeing increasing sales and the opening of new market prospects because of their ability to facilitate direct sales, personalized marketing, and global reach.
Furthermore, the integration of digital technology drives the industry's growth by fostering product innovation, optimizing production processes, and enabling personalized experiences.
From AI virtual assistants to smart devices, these technological advancements empower consumer goods businesses to meet evolving demands, enhance efficiency, and deliver improved products and services.
According to a report by Allied Market Research, the global Fast-Moving Consumer Goods (FMCG) industry is expected to grow at a <a href="https://www.alliedmarketresearch.com/fmcg-market">CAGR of 5.1%</a> and reach $18.94 trillion by 2031.
Given the backdrop, fundamentally sound consumer goods stocks SSDOY, YUEIY, and ACU could be ideal additions to your portfolio now.
Let's discuss in detail what makes these stocks worthwhile investments.
Shiseido Company, Limited (<a href="https://stocknews.com/stock/SSDOY/">SSDOY</a>)
Headquartered in Tokyo, Japan, SSDOY produces and sells cosmetics, including fragrances, skincare, and makeup products. It also operates in the restaurant, food, retail, and beauty salon industries. In addition, the company offers childcare facilities and supports a professional hair makeup training school.
On June 6, SSDOY revealed the development of an innovative technique that enhances the dermis' environment prone to age spots. The technique combines high-frequency electrical stimulation with plant extract. With this advancement, SSDOY intends to improve skincare solutions and address age-related skin concerns effectively.
On May 15, SSDOY reported successfully replicating the "thinning" phenomenon associated with aging in a three-dimensional (3D) skin model. The breakthrough has been made possible by utilizing expertise in cell experiments gained from regenerative medicine research.
Such advancements hold significant potential for further understanding and addressing age-related dermal thinning, which could benefit the company's growth and expansion prospects.
In terms of forward non-GAAP P/E, SSDOY is trading at 18.12x, 9.7% lower than the industry average of 20.07x. Likewise, the stock's forward EV/EBITDA multiple of 13.09 compares to the industry average of 13.14.
For the first quarter that ended March 31, 2023, SSDOY's net sales increased 2.6% year-over-year to ¥240.01 billion ($1.71 billion). Its <a href="https://www.investopedia.com/terms/o/operating_profit.asp">operating profit</a> rose 140.5% from the prior-year value to ¥10.53 billion ($74.86 million). Moreover, the company's profit increased 61.7% year-over-year to ¥9.19 billion ($65.38 million), while its EPS came in at ¥21.71, up 97.4% year-over-year.
The consensus revenue estimate of $7.15 billion for the fiscal year ending December 2023 reflects a 207.2% year-over-year improvement. Likewise, the consensus EPS estimate of $0.81 for the current year indicates a 39.4% rise year-over-year. Also, the company surpassed its consensus revenue estimate in three of four trailing quarters.
Over the past year, the stock has gained 12.5% to close the last trading session at $45.52.
SSDOY's solid fundamentals are apparent in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
SSDOY has a B grade for Growth, Sentiment, and Quality. It is ranked #4 in the 54-stock <a href="https://stocknews.com/category/consumer-goods/">Consumer Goods</a> industry.
In addition to the POWR Ratings I've just highlighted, you can see SSDOY's ratings for Value, Stability, and Momentum <a href="https://stocknews.com/stock/SSDOY/">here</a>.
Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>)
Based in Kwun Tong, Hong Kong, YUEIY manufactures and sells athletic shoes, outdoor shoes, casual shoes, sports sandals, soles, and other footwear products. It also engages in retail and distribution of sportswear and footwear products while providing commercial spaces to retailers and distributors.
YUEIY's forward EV/Sales of 0.38x is 68.2% lower than the industry average of 1.19x. Its forward EV/EBITDA of 4.22x is 56.4% lower than the 9.67x industry average. Moreover, the stock's forward Price/Sales of 0.25x is 71.6% lower than the industry average of 0.88x.
During the first quarter ended March 31, 2023, YUEIY's revenue came in at $2.11 billion, and its gross profit stood at $497.62 million. The company's other comprehensive income grew significantly from the prior year's quarter to $8.49 million. Also, its profit for the period attributable to non-controlling interests came in at $15.05 million, up 76.2% year-over-year.
YUEIY's revenue is expected to grow 10.3% year-over-year to $9.74 billion for the fiscal year ending December 2024. Moreover, the company surpassed its consensus revenue estimates in three of the trailing four quarters. The stock has gained 7.6% over the past month to close the last trading session at $6.93.
YUEIY's positive outlook is reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our proprietary rating system.
YUEIY has an A grade for Growth and Value and a B for Stability. It has ranked #6 out of 54 stocks within the Consumer Goods industry.
Beyond what we stated above, we also have YUEIY's ratings for Quality, Momentum, and Sentiment. Get all YUEIY ratings <a href="https://stocknews.com/stock/YUEIY/">here</a>.
Acme United Corporation (<a href="https://stocknews.com/stock/ACU/">ACU</a>)
ACU supplies first aid, medical products, and cutting technology to schools, homes, offices, and various markets across the United States, Canada, and Europe. The company serves the mass market and e-commerce retailers; industrial distributors; and office supplies, sporting goods, and hardware stores.
In terms of trailing-12-month EV/Sales, ACU is trading at 0.73x, 58.4% lower than the industry average of 1.76x. Its trailing-12-month Price/sales of 0.47x is 66.5% lower than the 1.41x industry average. Furthermore, the stock's trailing-12-month Price/Book of 1.16x is 56.6% lower than the industry average of 2.67x.
For the fiscal first quarter that ended March 31, 2023, ACU's net sales increased 5.8% year-over-year to $45.84 million. Its gross profit grew 8.8% from the year-ago value to $16.28 million.
The company's income from operations was $2.19 million, an increase of 59.6% year-over-year. In addition, its net income and EPS were $990 thousand and $0.28, up 19.3% and 27.3% year-over-year, respectively.
Analysts expect ACU's revenue to increase 4.1% year-over-year to $201.86 million for the fiscal year 2023. The company's EPS for the current year is expected to grow 107.3% from the prior year to $1.7. Furthermore, its EPS is expected to grow 10% per annum over the next five years.
Shares of ACU have gained 16.6% over the past six months to close the last trading session at $26.20.
ACU's robust outlook is apparent in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our pro­­­­­­­­­prietary rating system.
ACU has a B grade for Value, Stability, and Sentiment. It has ranked #5 out of 54 stocks within the same industry.
<a href="https://stocknews.com/stock/ACU/">Click here</a> to access additional ACU ratings for Momentum, Growth, and Quality.
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SSDOY shares were trading at $45.92 per share on Wednesday afternoon, up $0.40 (+0.88%). Year-to-date, SSDOY has declined -5.90%, versus a 17.67% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/ssdoy-yueiy-acu-top-3-consumer-good-stocks-worth-buying-now/>Top 3 Consumer Good Stocks Worth Buying Now</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Top 3 Consumer Good Stocks Worth Buying Now

With inflation cooling significantly from its peak in mid-2022, consumer spending picked up sharply in July, boosting the consumer goods industry's prospects. Further, rapid digital transformation across the industry would create numerous growth opportunities. Hence, quality consumer stocks Unilever (UL), Yue Yuen Industrial (YUEIY), and Mannatech (MTEX) could be solid buys this week. Continue reading… The consumer goods industry is well-poised to witness considerable growth this year and beyond, thanks to solid consumer spending and high purchasing power. Moreover, CPG companies are set for profitable expansion by embracing changing consumer needs and adopting new digital technologies to drive revenue and reduce costs.
Given the industry's promising growth outlook, fundamentally sound consumer stocks Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>), Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>), and Mannatech, Incorporated (<a href="https://stocknews.com/stock/MTEX/">MTEX</a>) could be ideal additions to your portfolio this week.
Inflation has fallen sharply from its peak of 9.1% in June 2022. In July, the consumer price index (CPI) <a href="https://www.cnbc.com/2023/08/10/cpi-inflation-july-2023-.html">grew 3.2% from a year ago</a>, slightly below the 3.3% forecast but higher than the 3% recorded in June. Despite the uptick in the headline number, the July report showed that underlying inflation continued its cooling streak.
Core CPI, which excludes the more volatile food and energy prices, increased 0.2% for the month and was up 4.7% year-over-year. July is the fourth consecutive month that the annual core CPI has eased, and the rate landed below a Dow Jones consensus estimate of 4.8%.
As inflation eases significantly, consumer spending held up well in July, with retail sales increasing <a href="https://www.cnbc.com/2023/08/15/retail-sales-report-july-2023.html">0.7% for the month</a>, higher than the 0.4% Dow Jones estimate. Excluding autos, retail sales grew 1%, against the 0.4% forecast.
According to Statista, value added in the consumer goods market is expected to total $3 trillion in 2023, and the market is projected to <a href="https://www.statista.com/outlook/io/manufacturing/consumer-goods/worldwide#:~:text=Value%20Added%20in%20Consumer%20Goods,(CAGR%202023%2D2028).">grow at a CAGR of 3.2%</a> during the forecast period (2023-2028). Robust consumer spending and high purchasing power should boost the market's growth.
Furthermore, consumer packaged goods (CPG) companies are positioning themselves for profitable expansion by embracing <a href="https://www.deloitte.com/global/en/Industries/consumer/analysis/consumer-products-industry-outlook.html">evolving consumer preferences</a>, rapid adoption of digital technology, driving data through supply chains, and prioritizing environmental, social, and corporate governance (ESG).
The CPG industry has embraced emerging technologies in various areas of the business, from manufacturing to marketing. Digital transformation can help companies <a href="https://emeritus.org/blog/digital-transformation-in-cpg-industry/">generate revenues while lowering costs</a>, with other key benefits including developing effective e-commerce strategies, optimizing digital marketing efforts, and forecasting customer demand using AI.
In addition to predicting consumer demand, CPG companies can apply AI and analytics across the supply chain to reduce manufacturing waste and avoid supply chain disruptions. By tracking products from production to delivery, companies can streamline operations, improving customer satisfaction.
As per a report by Market Research Future, the consumer packaged goods market size is expected to grow from $5.48 trillion in 2023 to $6.98 trillion by 2030, <a href="https://www.marketresearchfuture.com/reports/consumer-packaged-goods-market-11721">exhibiting a CAGR of 3.5%</a> during the forecast period.
Considering the industry's bright growth prospects, buying quality consumer stocks UL, YUEIY, and MTEX could be wise for solid returns.
Let's take a closer look at the fundamentals of these stocks:
Unilever PLC (<a href="https://stocknews.com/stock/UL/">UL</a>)
UL is a fast-moving consumer goods company headquartered in London, United Kingdom. It operates through five segments: Beauty &amp; Wellbeing; Personal Care; Home Care; Nutrition; and Ice Cream. It offers its products under the AXE, Bango, Ben &amp; Jerry's, LUX, Lifebuoy, Magnum, OLLY, Rexona, Seventh Generation, Sunsilk, The Vegetarian Butcher, Vaseline, and Wall's brands.
On April 3, UL, in partnership with Accenture (<a href="https://stocknews.com/stock/ACN/">ACN</a>) and Microsoft (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>), completed a huge cloud conversion project for UL's 400+ consumer brands. Through Azure's cloud platform, UL would be able to become a cloud-only organization, enhancing its product launches, customer service, and operational efficiency.
On February 14, UL announced the sale of its Suave brand in North America to Yellow Wood Partners LLC. The Sauve beauty and personal care brands comprise hair care, skin care, skin cleansing, and deodorant products. This sale is another significant step to the company's path to shift its portfolio toward strategic growth spaces.
UL's trailing-12-month gross profit margin of 41.02% is 25.9% higher than the industry average of 32.57%. Likewise, the stock's trailing-12-month EBIT margin and net income margin of 16.32% and 13.61% are favorably higher than the industry averages of 7.26% and 3.86%, respectively.
In terms of forward non-GAAP P/E, UL is trading at 17.46x, 4.8% lower than the 18.34x industry average. Also, the stock's forward EV/EBIT multiple of 14.40 is 6.9% lower than the industry average of 15.46.
UL pays an annual dividend of $1.88, translating to a yield of 3.72% at the current share price. Its four-year average dividend yield is 3.52%. The company has paid dividends for 12 consecutive years.
UL's turnover for the first half increased 2.7% year-over-year to €30.43 billion ($33.14 billion). Its <a href="https://www.investopedia.com/terms/o/operating_profit.asp">operating profit</a> grew 22.6% from the year-ago value to €5.52 billion ($6.01 billion). Its profit before taxation came in at €5.27 billion ($5.74 billion), up 20.8% year-over-year. Also, the company's net profit rose 20.7% year-over-year to €3.88 billion ($4.23 billion).
In addition, the company's underlying EPS came in at €1.46, an increase of 9% over the prior-year period.
Analysts expect UL's revenue for the fiscal year (ending December 2023) to increase 2.4% year-over-year to $66.02 billion. The consensus EPS estimate of $2.89 for the ongoing year represents a 4.9% rise year-over-year. Moreover, the company has surpassed the consensus revenue estimates in all four trailing quarters, which is impressive.
Shares of UL have gained 3.8% over the past nine months and 6.6% over the past year to close the last trading session at $50.53.
UL's strong fundamentals are reflected in its <a href="https://stocknews.com/">POWR Ratings</a>. 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.
UL has a B grade for Value, Stability, Sentiment, and Quality. It is ranked #5 of 56 stocks in the <a href="https://stocknews.com/category/Consumer%20Goods">Consumer Goods</a> industry.
Beyond what we stated above, we also have UL's ratings for Momentum and Growth. Get all UL ratings <a href="https://stocknews.com/stock/UL/">here</a>.
Yue Yuen Industrial (Holdings) Limited (<a href="https://stocknews.com/stock/YUEIY/">YUEIY</a>)
YUEIY is an investment holding company that manufactures, markets and sells athletic, casual, and outdoor footwear. Also, the company operates as an original design manufacturer for prominent brands such as Puma, Nike, and Timberland, producing leather products, soles, and other components. It is headquartered in Kwun Tong, Hong Kong.
In the latest financial results release, Mr. Lu Chin Chu, Chairman, said, "Despite the destocking cycle being experienced by the global footwear industry across the board, we have been able to defend our profitability to a certain extent thanks to the milestones we had already reached as part of our multi-year capacity allocation and digital transformation strategies. This fuels our optimism about the long-term prospects of our manufacturing business."
He added, "The streamlined business structure, store refinements, omni-channel investments and our expanding alliances with brand partners will allow our retail business to further safeguard its long-term competitive edge."
In terms of forward EV/Sales, YUEIY is trading at 0.37x, 68.7% lower than the industry average of 1.18x. And the stock's 4.43x forward EV/EBITDA is 54.4% lower than the industry average of 9.70x. Moreover, its forward Price/Sales multiple of 0.25 is 71.2% lower than the industry average of 0.86.
YUEIY's annual dividend of $0.70 translates to a yield of 10.72% at the current price level. Also, its four-year average dividend yield is 4.83%.
For the first half that ended June 30, 2023, YUEIY's manufacturing ASP increased 7.5% year-over-year to $21.67 per pair, driven by relatively strong demand for the group's high-end footwear. Its other income for the period grew 8.4% year-over-year to $66.50 million. In addition, the company's net free cash inflow amounted to $281 million.
Street expects YUEIY's revenue for the fourth quarter (ending December 2023) to increase 6.7% year-over-year to $2.13 billion. Likewise, the company's revenue for the fiscal year 2024 is expected to grow 10% from the previous year to $9.10 billion.
Over the past nine months, YUEIY's stock has gained 6.9% to close the last trading session at $6.54.
YUEIY's POWR Ratings reflect its robust prospects. The stock has an overall B rating, translating to a Buy in our proprietary rating system.
YUEIY has an A grade for Value and a B for Stability. It is ranked #7 out of 56 stocks within the same industry.
<a href="https://stocknews.com/stock/YUEIY/">Click here</a> to see the additional ratings for YUEIY (Momentum, Growth, Sentiment, and Quality).
Mannatech, Incorporated (<a href="https://stocknews.com/stock/MTEX/">MTEX</a>)
MTEX is a global health and wellness company. It develops, markets, and sells nutritional supplements; topical and skin care and anti-aging products; and weight-management and fitness products. The company sells its products directly and through e-commerce and network marketing channels.
On April 18, MTEX announced the formation of a new wholly-owned subsidiary, which will function as an innovation hub for the company. This subsidiary introduced the brand Trulu to the gig economy after thorough research and study. The new entity will operate separately from MTEX but is integral to the company's future growth.
MTEX's trailing-12-month gross profit margin of 76.23% is 134% higher than the industry average of 32.57%. Also, the stock's trailing-12-month asset turnover ratio of 2.62x is 186% higher than the industry average of 0.92x.
In terms of the trailing-12-month EV/Sales, MTEX's 0.16x is 90.9% lower than the 1.73x industry average. Likewise, its trailing-12-month Price/Sales multiple of 0.17 is 84.7% lower than the industry average of 1.08.
The company's annual dividend of $0.80 translates to a 6.64% yield on the prevailing share price, while its four-year average dividend yield is 6.43%. MTEX's dividend payouts have grown at CAGRs of 17% and 5.1% over the past three and five years, respectively.
MTEX reported net sales of $32.59 million for the second quarter ended June 30, 2023. Its gross profit came in at $25.59 million for the period. The company's current assets stood at $31.25 million as of June 30. 2023. Also, its current liabilities lowered to $28.24 million as of June 30, 2023, compared to $29.84 million as of December 31, 2022.
Analysts expect MTEX's EPS to grow by 17.5% per annum over the next five years. Over the past month, the stock has gained 2% to close the last trading session at $12.04.
MTEX's promising outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.
MTEX is ranked #4 of 60 stocks in the Consumer Goods industry. It has an A grade for Value and Quality and a B for Sentiment. To access additional ratings of MTEX for Growth, Momentum, and Stability, <a href="https://stocknews.com/stock/MTEX/">click here</a>.
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UL shares rose $0.17 (+0.34%) in premarket trading Tuesday. Year-to-date, UL has gained 3.39%, versus a 16.43% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/ul-yueiy-mtex-msft-acn-3-must-buy-consumer-stocks-this-week/>3 Must-Buy Consumer Stocks This Week</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>