This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Profitable Consumer Goods Stocks Soaring Past Shaky Consumer Confidence

Mary Lynn Cesar, Kapitall: Can consumer goods stocks survive a dip in consumer confidence? Consider the list below.

Tuesday saw the release of two major consumer economic indicators, painting an interesting picture of the US economy.

The Department of Commerce’s September Advance Monthly Sales for Retail and Food Service figures (PDF) showed $379.5 billion in retail sales last month, which is 0.2% lower than August’s numbers but 3.1% higher than those reported in September 2012. 

Read more from Kapitall on this topic: 4 Consumer Goods Stocks Looking Strong as Confidence Slips

Sales increased in most business categories, with grocery stores posting the biggest gain at 1.0%. On the other hand, auto dealers, clothing retailers, and department stores all experienced declines in purchases, with auto dealers leading the group with a 2.4% drop.

Click on the interactive chart to see analyst ratings over time for the stocks in our list:

A bleaker indicator turned out to be the Conference Board’s October Consumer Confidence survey, providing the index’s weakest reading in six months. Consumer confidence fell to 71.2 in October, down from September’s 80.2 reading in the index’s biggest tumble since August 2011.

Read more about consumer confidence: 4 Consumer Goods Stocks Looking Strong as Confidence Slips

The Conference Board attributed the downward shift to the government shutdown and debt ceiling debacle, stating that wavering consumer confidence will remain an issue in the near future due to the temporary debt ceiling fix.

Under the current law, the debt ceiling is suspended until February 7, allowing the Treasury Department to issue as much debt as necessary until then. After that, the ceiling will be reinstated and Congress will once face a debt ceiling debate.

Investment ideas

The Conference Board expects consumer confidence to be volatile over the coming months due to the short-term nature of the debt ceiling deal. Given the relationship between an inefficient Congress and consumer confidence, we decided to look for investment opportunities among consumer goods stocks, specifically looking for companies with strong indicators of financial health and efficient management.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs