A 5% premarket rally in Avon (NYSE: AVP) following upbeat quarterly results provided a bit of a tailwind for consumer exchange traded funds (ETFs) as investors plowed through more earnings reports Tuesday.
The company “beat low expectations with decent performance in its key markets,” said Deutsche Bank analysts in a note on Avon earnings.
The seller of beauty products said first-quarter total revenue rose 7% from the year-ago period to $2.6 billion. Foreign exchange also helped in the latest quarter.
“With strong underlying category growth given geographic exposure, [the]company is privileged relative to peers with a compelling margin recovery opportunity … but needs to show sustained improvement from here to keep the stock working especially on the cash flow front,” Deutsche Bank said.
Avon accounts for 2.5% of Rydex S&P 500 Equal Weight Consumer Staples ETF (NYSEArca: RHS).
Rydex S&P 500 Equal Weight Consumer Staples ETF
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