Thu, 22nd Mar 2018
The consumer goods sector is showing some strength at the moment, meaning that old staples such as Tesco and Diageo are looking like attractive buys, while comparative upstarts such as Just Eat are also showing a lot of promise.
Tesco is expected to report an increase in EPS over the coming months, and the company’s decision to acquire Booker - something which managed to earn regulatory approval –looks set to help the company to improve its overall performance as well.
Tesco is focusing on its core business to consolidate itself after it went through some tough times thanks to competition from out of town discounters, and so far those decisions seem to be paying off.
Meanwhile, Diageo has managed to perform well even since the result of the Brexit vote became known. Brexit could put the UK economy under pressure - and has already caused issues for long-standing high street staples such as Toys R Us and Maplin, but Diageo’s move to focus on margins has helpd the company a lot.
Just Eat’s disruptive focus has catapulted the company into a strong position. The online takeaway ordering company has seen a strong interest in its services. Just Eat is investing in both new services, and making acquisitions, and there is a lot of room for the company to grow, in a sector which as some - but limited - competition at this time. This makes it a great opportunity for investors looking to ride the wave of increased online ordering.