Specifically, Kraft (NasdaqGS: KRFT), General Mills (NYSE: GIS), Procter & Gamble (NYSE: PG), Campbell Soup (NYSE: CPB), Coca-Cola (NYSE: KO) and Costco (NasdaqGS: COST) show an average price-to-earnings ratio of 21.5. Meanwhile, these companies’ earnings growth over the past year averaged 0%, which suggests that investors are not jumping in on growing businesses but as a defensive play. [ETFs for a Buffett Acquisition]
“This is a fear-based kind of a behavior, and it comes to an end more often than not,” Worth said.
XLP’s stock portfolio shows a P/E of 18.8, compared to the S&P 500’s P/E of 16.7. XLP includes positions in KRFT 2.1%, GIS 2.2%, PG 13.4%, KO 9.3% and COST 3.2%.
Consumer Staples Select Sector SPDR
For more information on the consumer staples sector, visit our consumer staples category.