Consumer Defensive: Thirst for Growth Has Yet to Be Quenched
Although growth has continued to languish, investors should keep competitively advantaged names in the consumer defensive space on their shopping lists.
Relative to last quarter, the consumer defensive sector is now trading at just a 2% discount to our fair value estimates (up from 5% a quarter ago). However, we still maintain that opportunities for long-term investors to build positions in competitively advantaged names remain.
Erin Lash has a position in the following securities mentioned above: PM. Find out about Morningstar’s editorial policies.