ValuEngine Weekly: Consumer Discretionary Stocks,Kroger, Miller Coors Acquisition
Group 3- Consumer Discretionary Presentation
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Consumer Discretionary XiaoLong Cao, Jessleen Dhaliwal, Tamir Gantumur, Ling Yee Wong, Jefferson Ye, Richard Liu Group 3:
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Transcript of Group 3- Consumer Discretionary Presentation
ConsumerDiscretionary
XiaoLong Cao, Jessleen Dhaliwal, Tamir Gantumur, Ling Yee Wong, Jefferson Ye,
Richard Liu
Group 3:
Richard Liu
Hey guys and gals, I made another title slide and added themes to the presentation and reformatted some of the slides but I will let you guys and gals decide which one you would prefer to use.
Jessleen Dhaliwal
Hey Richard! Feel free to change the background of the title slide if you'd like! I just didn't know what else to put there
What is Consumer Discretionary?
∗ The companies in this sector produce and sell nonessential goods and services for the public.
∗ Walt Disney Co. (DIS), Amazon.com (AMZN), Ford Motor Co. (F)
∗ This sector performs better when the economy is doing well.
What’s happening in the sector?
∗ XLY, which is an ETF that reflects the Consumer Discretionary Index dipped past its 200 Day Moving Average in April
∗ Consumer Staples is outperforming Consumer Discretionary by 1.26 points
∗ Consumer Discretionary is showing a negative yield of 0.78
Example of a Company∗ Walt Disney Co. (DIS) is the leading diversified
international family entertainment and media enterprise.∗ Disney manages five business segment:
1. Media Networks2. Parks & Resorts3. Studio Entertainment4. Consumer Products5. Interactive Media
How do you feel about this sector?
∗ Consumer Discretionary performed the worst out of the major sectors this year
∗ Outperformed S&P 500 in last 5 years
∗ Consumers may wait for positive economic growth when buying a car
Automobiles
Ziqing Huang
hi guys. what do you guys mean on the automobiles slide?
∗ Demand for luxury goods is typically more resilient than due to the wealthier target demographic.
∗ Global economic growth benefits luxury goods due to growth of affluent consumers
Apparel Industry
∗ Advertising and home entertainment sales benefit from a growing economy.
Media
What will happen in the future?
Automotive industry:∗ Sales growth in emerging markets (BRIC and RoW)∗ Stagnant sales in established markets (US, Europe,
Japan and Korea)∗ Development of alternative technologies (hybrid and/or
electric vehicles)∗ Aligning production and supply bases in the regions
Media industry:∗ New technology - increased
accessibility∗ 2.7 out of 7.1 billion users∗ Revenue growth from digital
advertising and internet access
What will happen in the future?
Investment Strategies WALT DISNEY∗ Partnership with Dish Network, Apple∗ Frozen∗ Earning report; profit exceeds estimates
DIS
Net income increased from $1.01 a share ($1.85 billion) to $1.28 a share ($2.25 billion), while the estimate of 28 analysts was $1.16 a share
MICHAEL KORSTheir earning also beat the estimates one of the most heavily traded stocks
KORS
Mean-Reversion mode∗ short sell (high $60s & low $70s)
Referenceshttp://www.kottcapital.com/wp-content/uploads/2011/07/Consumer-Discretionary.pdfhttp://investing.covestor.com/2014/03/consumer-discretionary-stocks-canary-coal-minehttp://www.marketwatch.com/investing/stock/dis/profilehttp://thewaltdisneycompany.com/about-disney/company-overviewhttp://finance.yahoo.com/news/Beyond-XLY-Considering-etfdatabase-2252674992.htmlhttps://www.pwc.com/gx/en/global-entertainment-media-outlook/data-insights.jhtml
Questions?
