Insight & action

Are More Consumer Stocks Set to Disappoint Investors?

Consumer, where art thou?

Three key consumer companies in the past 24 hours have announced negative sales results:

As Best Buy Chief Executive Officer Hubert Joly told me on Thursday, "We hit a speed bump." The problem here is that he is clearly not alone. The negative to positive pre-announcement ratio this season, at 8.4 to 1, represents a 15-year high, as noted in our blog on Jan 13. Curiously, investors seem not to have noticed.

Our concern today is determining who might be next to disappoint. So we identified those consumer companies set to report earnings in the next few weeks, where analysts have already begun to lower numbers. We narrowed the list to 19 from a universe of 355.

We shared eight notable companies on-air during our daily Insight & Action segment -- Brinker International Inc. (EAT), Delta Air Lines Inc. (DAL), eBay Inc. (EBAY), Expedia Inc. (EXPE), Newell Rubbermaid Inc. (NWL), PetMed Express Inc. (PETS), Ralph Lauren Corp. (RL) and Take-Two Interactive Software Inc. (TTWO). We include the other 11 here for the benefit of blog readers: Alaska Air Group Inc. (ALK), Bally Technologies Inc. (BYI), The Hersey Co. (HSY), Hillshire Brands Co. (HSH), International Game Technology (IGT), McCormick & Co. (MKC), PulteGroup Inc. (PHM), NVR Inc. (NVR), Rollins Inc. (ROL), Under Armor Inc. (UA), Viacom Inc. (VIAB).

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