JHMC News and Press, John Hancock Multifactor Consumer Discretionary From 07/12/22

Capri Holdings Limited is a global fashion group and owner of Michael Kors, Versace, and Jimmy Choo. Capri stock is down >35% YTD, which is significantly more than the S&P 500’s -20%. At a 2023 forward P/E of x6, investors might like to consider Capri stock as a barg...

For Q2 2022, the Refinitiv Retail/Restaurant Index is looking at a -7.6% blended estimated earnings growth rate, and an 8.4% blended estimated revenue growth rate. Currently, low-income consumers are being squeezed the most in the absence of stimulus checks that last year boosted thei...

The gap between energy stocks and consumer discretionary stocks is striking. We think the market is suggesting that extreme energy inflation will lead to a dramatic reduction in spending. If consumer spending turns out to be more resilient than the market expects, we think the con...

Ford’s shares have lost almost half of their value this year. Valuation is distressed in the short term due to recall headwinds and uncertainty about raw material cost. Ford yield and valuation are both attractive. For further details see: The Market Is Wrong Abou...

It’s still supply chain chaos for retailers, but different retailers face different kinds of chaos. Overall retailer inventories, in terms of months’ supply, are still near historic lows. Inflation in goods – which is what retailers sell – has been far ...

The University of Michigan’s consumer sentiment index's preliminary estimate for June plunged to a record low. The good news from all this bad news is that “contrarian theory” says that when sentiment reaches such historic lows, the only way it can go is up. T...

Cryptocurrencies are bid this morning, and US markets are reopening with a bounce following the steepest losses since March 2020. Short interest bets have now piled on, which can set the stage for a sharp rebound. Rebounds will likely be fleeting as long as central banks remain in...

SiteOne Landscape Supply is the largest provider of wholesale landscaping products in the United States. The Company has grown EBITDA by 200% over the last 5-years and has a huge runway for growth remaining in the $23 billion landscape supply market. SiteOne is an industry consoli...

A drop in big-ticket purchases such as autos serves as a canary in the coal mine. Americans were spending more because of rising prices. The mainstream claims that wages are rising and that enables Americans to keep up with rising prices. For further details see: Retail ...

AIER’s Leading Indicators Index returned to a neutral 50 reading in May, rising four points following an eight-point fall in April. While broad trends and risks continue, there are some signs of inflection in a few areas. The Roughly Coincident Indicators index fell back in...