Consumer Staples

The Consumer Staples Sector comprises companies whose businesses are less sensitive to economic cycles. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

Last % Change Market Cap Market Weight Weighting Recommendations
S&P Capital IQ Ned Davis Research (PDF) Log in required.
-- $3.36T 8.22% Overweight +0.10%

Sector Commentary from Standard & Poor's

<p>CFRA recommends overweighting the S&P 500 consumer staples sector. Year to date through March 10, 2020, the S&P 500 consumer staples index, which represented 7.9% of the S&P 500 index, was down 3.8% as compared with the S&P 500's 10.8% decline. In 2019, this sector index rose 24.0% versus a price increase of 28.9% for the 500. There are 12 sub-industry indices in this sector. Household products is the largest, representing 23.8% of the sector's market value, while brewers is the smallest, accounting for 0.5% of the sector.</p><p>The cap-weighted average of this sector's component company CFRA STARS (STock Appreciation Ranking System) is 3.4 out of 5.0, as compared to a cap-weighted average of 3.7 for the S&P 500. In addition, 28% of the stocks in the sector have favorable investment recommendations versus 39% for all companies in the S&P 500. The sub-industries within this sector that currently show the highest average STARS are food retail, hypermarkets & super centers, soft drinks, and tobacco. Those with the lowest average STARS include brewers, distillers & vintners, food distributors, and household products. According to S&P Capital IQ Consensus Estimates, the sector recorded a 1.9% year-over-year increase in operating earnings per share in 2019, as compared with the S&P 500's EPS gain of 1.3%. Sector EPS are projected to advance 4.2% in 2020 versus a 4.1% expected increase for the S&P 500. In addition, revenues for the sector increased by 2.7% in 2019 and are projected to rise 3.5% in 2020 versus the S&P 500's rise of 3.1% and 4.9%, respectively. The sector's price-to-earnings ratio of 19.6x, based on the consensus next-12-month operating EPS estimate, is above the S&P 500's forward P/E of 16.9x. S&P Capital IQ also reports that the consensus long-term EPS growth estimate for this sector is 7.3% versus the S&P 500's 11.6%, giving the sector a P/E-to-projected EPS growth rate (PEG) ratio of 2.7x, which is well above the broader market's PEG of 1.5x. Finally, this sector pays a dividend yield of 2.9%, as compared with the yield of 2.2% for the S&P 500.</p><p>Finally, the CFRA proprietary reward rating input for the corresponding S&P 500 sector ETF is positive, driven by the relative attractiveness of its underlying holdings and its recent performance record.</p><p>/Sam Stovall<p>


Understanding Weighting Recommendations

Sector weighting recommendations are provided by independent, third-party research firms to help further refine your analysis.

Some sectors get "over," "market," or "under" weighted, which means that the research firm recommends that more, the same, or less of the sector should be held in your portfolio than is held in the market.

Learn more about the average recommendation holding period and methodology of the research firms:

View weighting recommendations for all sectors


U.S. Sectors & Industries Performance is represented by the S&P 500 GICS® (Global Industry Classification Standard) indices. Last % change is the nominal change in the price of the index from the previous trading day's close expressed as a percentage as of the index value at the time noted in the Date & Time field. All dates and times are reported in ET.

Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol. Chart Performance figures may vary slightly from 1 Year % Change due to different timeframes used in chart calculations.

GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). S&P uses GICS to determine the market segment to which a company is assigned. A company is assigned to a single GICS industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI. Revenues are a significant factor in defining principal business activity; however, earnings analysis and market perception are also important criteria for classification. There are currently 10 sectors and 68 industries. Three of the 68 industries do not have companies represented in the S&P 500 Index; therefore, performance is not available for Marine, Transportation and Infrastructure, and Water Utilities.

Standard & Poor's 500 (S&P 500) Index is an unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares.

Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

Chart Performance enables you to chart and change performance timeframe of daily percent change for the indices as well as the ability to add a user-entered symbol.

Market Cap is the sum of the market value of each company assigned to the applicable GICS sector or industry. Market value or capitalization is calculated by multiplying the number of common shares outstanding by the market price per share at the end of each trading day.

Market Weight is updated weekly from S&P Capital IQ and represents the sum of the market cap of the companies in the applicable S&P 500 GIC sector index as a percentage of the total S&P 500 Index market capitalization.

Fundamental data is the cap weighted average (or industry standard method) of the most current value available at the end of each trading day for each company assigned to the applicable GICS sector or industry.

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Past performance is no guarantee of future results.