US Equity Strategy: SIGN (Sector & Industry Group Navigator): Back to Broadening

Research evidence excerpt

US Equity Strategy: SIGN (Sector & Industry Group Navigator): Back to Broadening

Consumer Staples: Summary Underweight

Consumer Staples Distribution & Retail – Underweight Sector / Industry Group Weighting & Recommendation

Food, Beverage & Tobacco – Market Weight 2.5%

2.1% 2.1%

Household & Personal Products – Market Weight 2.0% 1.8%

1.5%

• Consumer Staples remains a persistent Underweight 0.9% 0.9% 1.0%

(albeit marginal)

• Consumer Staples Distribution & Retailing remains 0.5%

0.0%

Underweight. Tight margins leave little room for error, 0.0%

and valuations are far from attractive. Consumer Staples Food Beverage & Tobacco Household & Personal

Distribution & Retail Products

• Food, Beverage & Tobacco is MW. It scores neutral on S&P 500 Weight Recommended Weight

all metrics.

• Household & Personal Products is MW. Valuations are Largest Weights in Sector

mostly attractive but other inputs are more mixed Ticker Name Industry Group Sector Weight IG Weight WMT Walmart Inc Cons Staples Distribution Retail 17.1% 44.8%

COST Costco Wholesale Corp Cons Staples Distribution Retail 14.0% 36.7%

PG Procter & Gamble Co/The Household & Personal Products 11.6% 63.5%

KO Coca-Cola Co/The Food, Bev & Tobacco 10.4% 24.0%

PM Philip Morris International Inc Food, Bev & Tobacco 9.3% 21.5%

PEP PepsiCo Inc Food, Bev & Tobacco 6.4% 14.8%

MO Altria Group Inc Food, Bev & Tobacco 4.1% 9.4%

MDLZ Mondelez International Inc Food, Bev & Tobacco 2.7% 6.2%

CL Colgate-Palmolive Co Household & Personal Products 2.4% 13.3%

MNST Monster Beverage Corp Food, Bev & Tobacco 2.3% 5.2%

Top Citi Buy- and Sell-Rated Stocks by ETR

Ticker Name Price (24 Jun) Rating ETR

CELH Celsius Holdings Inc 28.52 1 111%

ACI Albertsons Cos Inc 14.13 1 61%

ELF elf Beauty Inc 64.54 1 34%

EL Estee Lauder Cos Inc/The 83.27 1 34%