RHS News and Press, Invesco S&P 500 Equal Weight Consumer Staples From 10/04/22

Summary We expect macro headwinds will continue to pressure U.S. corporate earnings in the coming months. We expect earnings expectations to decline as multinational firms realize foreign exchange headwinds that accelerated over the past year. Investors can avoid undue interna...

Summary A number of advisors have reported higher than normal inventories as an additional sign of pending recession. The data does not support this perception. Business Inventory/Sales…and Retail Sales vs. Trucking… reveal a considerable deficit exists in business I...

Summary The consensus expectation on Tuesday for August CPI was for a 0.1% decline, but the positive +0.1% monthly gain in the CPI shocked Wall Street. This inflation news spooked Treasury bond yields, pushing 10-year yields up from 3.36% on Monday to 3.42% on Tuesday. Now tha...

Summary Tobacco and household products are undervalued relative to 11-year averages. Staple and food retail is the most overpriced industry in the sector. RHS, a balanced alternative to XLP. 8 stocks cheaper than their peers in September. This monthly article ser...

Summary From a year ago, retail sales are up 9.2 percent and remain well above the pre-pandemic trend. Real core retail sales posted a 0.3 percent decline in August after declining less than 0.1 percent in July. Overall, nominal total and core retail sales remain well above tr...

Summary AIER’s Leading Indicators Index held at a cycle low of 29 in August, matching the lowest level since August 2020. The Consumer Confidence Index from The Conference Board rose in August, the first increase following three consecutive monthly declines. The final A...

Summary Jackson Hole reset expectations to focus more on inflation. The U.S. dollar should stabilize over the medium-term amid hawkishness from other central banks and slowing economic data. At stake is Europe’s ability to refill their storage tanks ahead of winter. ...

Summary We believe that cash flow and debt sustainability are likely to become increasingly important as real economic growth slows and credit access tightens. Cash flow provides a link between a company’s income statement and their balance sheet. Focusing on the Russel...

The tobacco industry is undervalued relative to historical averages. Beverage and staple retail are the less attractive subsectors regarding value scores. VDC vs. XLP. 7 stocks cheaper than their peers in August. This monthly article series shows a dashboard with agg...

To date, 151 of the 204 companies in our Retail/Restaurant Index have reported their earnings results for Q2 2022, representing 74% of the index. The blended revenue growth estimate for the 204 companies in this index is 9.0% for Q2 2022. July’s monthly retail sales came in...