2 Consumer Defensive Brands Maintain Value Amid Uncertainty
Constellation and Hostess both look promising.
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Erin Lash: Although the consumer defensive space has held up amidst the market carnage better than most, we still think there are significant opportunities for investors relative to the recent past. More specifically, the sector has declined at a mid-teens clip through the end of March, versus the high teens to low 20%s fall we've seen across the broader market space. And while the sector now trades at a mid-teens discount to our assessment of intrinsic value, we think this is incredibly attractive relative to the high single digits the sector has traded at over the last several quarters.
Erin Lash does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.