Continue to Book Profits in Consumer Staples
NEW YORK (TheStreet) -- Consumer staples stocks continue to perform well in 2012, but strength in these stocks should be used to book profits, particularly in those names that have set multiyear highs recently.
Back on Aug. 6, I profiled this sector in an article titled "Book Profits in Overvalued Consumer Staples," and this remains my theme in today's update.
Back on Aug. 6, 67.4% of all stocks were undervalued, according to my Web site, www.ValuEngine.com. As this week began, the percentage of undervalued stocks is down to 45.7%.
On Aug. 6, the consumer staples sector was 11.3% overvalued, and now it's 14.5% overvalued.
My benchmark for this sector remains the Consumer Staples Sector SPDR Fund (XLP). XLP's weekly chart shows overbought momentum, and this condition began at the end of the week of July 27. XLP will remain positive but overbought with a weekly close above its five-week modified moving average at $35.58.If you are employing a "buy and trade" strategy in XLP, my annual value level lags at $32.87, with monthly and weekly risky levels at $36.09 and $36.35, respectively. The first of these levels was tested at last week's multiyear high at $36.11. My quarterly risky level is $37.64.
Source: Thomson Reuters
Today I profile eight of the components of XLP that have Strong Buy or Buy ratings and set multiyear highs between July 30 and Sept. 17.
|
Reading the Table
OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by this percentage, according to ValuEngine. VE Rating: A "1-Engine" rating is a strong sell, a "2-Engine" rating is a sell, a "3-Engine" rating is a hold, a "4-Engine" rating is a buy and a "5-Engine" rating is a strong buy. Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
