A Quick Compare of the SPDR Consumer Staples ETF (XLP) Top Five

The stocks in this article: Wal-Mart, Proctor and Gamble, CVS, Coca-Cola, and Phillip Morris ( Tickers: PG, KO, PM, WMT, CVS ) comprise the top five holdings of the SPDR Consumer Staples ETF, with PG being slightly larger than the rest. This  group features solid dividends, mixed EPS growth, consistent but uninspiring sales growth, and low volatility. Of course, isn’t that what you’d expect from consumer staples companies.

CVS stands out to me as having the best combination of growth ahead relative to the price PE you have to pay for it. CVS looks to be growing at 20 % with a PE of only 18, thus I’d put it as the most undervalued here, trading at less than 1 times growth.

Overall, just looking at the top five in the group, I’d put the XLP at fairly valued. It will likely follow the market for the next couple of months, provided there is no major sell-off in the making.

Related: Why the Biotech ETF (IBB) Has Not Finished Its Run

Stock PE Price/Sales Div Yield (Trailing Annual) Volatility
PG 21.43 2.7 2.8% 0.14
KO 20.81 3.8 2.7% 0.13
PM 17.36 4.7 3.9% 0.16
WMT 15.23 0.5 2.3% 0.13
CVS 18.17 0.6 1.4% 0.16
Stock EPS Qtr. On Qtr. Growth Rev Qtr. On Qtr. Growth
PG 8.3%   10/2013
-48.5%   8/2013
7.3%   4/2013
143.9%   1/2013
2.2%   10/2013
2.2%   8/2013
2%   4/2013
2%   1/2013
KO 8%   10/2013
-3.3%   7/2013
-13.3%   4/2013
13.9%   2/2013
-2.5%   10/2013
-2.5%   7/2013
-0.9%   4/2013
3.8%   2/2013
PM 9.1%   10/2013
-4.4%   7/2013
2.4%   4/2013
12.1%   2/2013
0.1%   10/2013
-2.5%   7/2013
2.8%   4/2013
185.5%   2/2013
WMT 5.6%   11/2013
5.1%   8/2013
4.6%   5/2013
11.1%   2/2013
1.5%   11/2013
2.3%   8/2013
1%   5/2013
3.9%   2/2013
CVS 29.1%   11/2013
21.3%   8/2013
30.5%   5/2013
12%   2/2013
5.8%   11/2013
1.8%   8/2013
-0.1%   5/2013
10.8%   2/2013

Note that PM’s sales drops are a bit misleading.

Stock Current Qtr
EPS Growth
Forecast
Next Qtr
EPS Growth
Forecast
Current Qtr
Rev Growth
Forecast
Next Qtr
Rev Growth
Forecast
PG -9.4% ( High )
-12.9% ( Ave. )
-17.3% ( Low )
28.4% ( High )
23.9% ( Ave. )
20.5% ( Low )
1.5% ( High )
0.9% ( Ave. )
-0.2% ( Low )
5% ( High )
2.6% ( Ave. )
1.6% ( Low )
KO 17.2% ( High )
14.8% ( Ave. )
7.4% ( Low )
28.2% ( High )
25.6% ( Ave. )
20.5% ( Low )
0.9% ( High )
-0.9% ( Ave. )
-2.5% ( Low )
2.5% ( High )
0.5% ( Ave. )
-1% ( Low )
PM 14.8% ( High )
11.6% ( Ave. )
9.1% ( Low )
12.5% ( High )
8.6% ( Ave. )
0% ( Low )
-84.7% ( High )
-85.5% ( Ave. )
-86.5% ( Low )
-57.9% ( High )
-59.3% ( Ave. )
-61.7% ( Low )
WMT 1.8% ( High )
-0.6% ( Ave. )
-7.2% ( Low )
14.9% ( High )
11.4% ( Ave. )
5.3% ( Low )
6.7% ( High )
2.7% ( Ave. )
1% ( Low )
5.1% ( High )
3.9% ( Ave. )
2.1% ( Low )
CVS 28.4% ( High )
22.9% ( Ave. )
20.7% ( Low )
29.9% ( High )
22.1% ( Ave. )
14.3% ( Low )
7.7% ( High )
4.2% ( Ave. )
3.1% ( Low )
11.8% ( High )
4.6% ( Ave. )
2.1% ( Low )

 

Source: QoQ Charts