Our outlook for consumer defensive stocks

Modest pockets of value emerge among consumer defensive companies.

Erin Lash, CFA 29 June, 2013 | 2:49AM

Highlights
Although we contend that a lower discount rate is warranted for a handful of the moaty consumer defensive firms we cover, we still believe the market's longer-term growth assumptions remain slightly inflated.
Despite rumours to the contrary, we think smaller, strategic tie-ups rather than larger transformational deals will likely take top billing in the consumer defensive space over the near term.
The growing popularity of electronic cigarettes is both a threat and an opportunity for Big Tobacco.

Market's long-term growth assumptions remain inflated

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About Author

Erin Lash, CFA

Erin Lash, CFA  Erin Lash, CFA, is a director of consumer sector equity research for Morningstar.