On Friday, the U.S. stock market has slumped for more than one percent and some traders are looking for sunshine through the consumer stocks and building materials.
The plunge of the stocks was due to the drop of European equities and revived concerns about Greece. According to Michael Block of Rhino Trading Partners “the selloff was just a little correction that represents a trading and buying opportunity.”
“Everyone’s freaking out about the DAX’s down two days in a row, heck it was up 23 percent year to date. The thing keeps moving. Nothing’s really changed here. We’ve got some big data coming out next week. The data has been fine at worst.” As said by Block during a CNBC’s halftime report.
An institutional consultant at UBS, Rob Sechan, also said that the recent stabilization in oil prices, even though the absolute values are low, may still boost the consumer stocks. Per Sechan, “low energy prices, broadly lower rates, although trending in the other direction right now, is broadly supporting for the consumer sector.”
While the other markets are declining, according to Bill Pulte, CEO of Pulte Capital Partners, which focuses on building products, there is a strong housing market ahead. Per Pulte during an interview, “we certainly had a slower Q4 and a certainly slower Q1 than we would have thought, but if you ignore the noise, the housing market is still strong and it continues to grow.”
He has hinted that it will increase merger and acquisition activity among building product companies and have pointed out that the trend, in the coming months, will most likely influence the housing market.
What is a Consumer Stock?
A stock of a company that makes consumer-oriented products, example: food, pharmaceuticals or beverages.
Top 10 Consumer Stocks to Consider
- Collectors Universe Inc (CLCT)
- Carriage Services Inc (CSV)
- Sotheby’s (BID)
- Block H&R Inc (HRB)
- Lifelock Inc (LOCK)
- Stonemor Partners LP (STON)
- Liberty Tax Inc (TAX)
- Regis Corp/MN (RGS)
- Steiner Leisure LTD (STNR)
- Ascent Capital Group Inc (ASCMA)
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