Defensive stocks - 2 buy and 1 sell

Wednesday, Nov 14 2018 by
4

The last couple of weeks have been choppy for most of the international stock markets, with UK FTSE 100 swinging between 7140 and 6940 points, US index S&P 500 shuffling between 2815 and 2640 points and India based Nifty 50 index trading between 10600 and 10000 points.

Consequently, in the shorter term, it is not easy to determine which direction world indices may go, but most of them have broken below their uptrend channels in the medium term charts and are waiting for the next course of action which will eventually be first reflected in the short term chart.

To bring down uncertainty in the market, companies like FMCG, Pharma and Logistics help tide over market volatility. They are considered defensives, as traders and investors use them as a hedge to safeguard their portfolios from major downside. But company internals are equally important. If a company is not doing very well from inside, it may turn out to be a poor investment irrespective of market direction.

We look at three international stocks today, two FMCG and one Pharma and Health Care.

Astrazeneca Plc (AZN.L) Close: 6311.00

5bec03a52d3f020181114_AZN.PNG

Headquartered in UK, listed on both US and UK stock exchanges, the Anglo–Swedish multinational pharmaceutical company ASTRAZENECA PLC is inside a rising trend channelin the medium term. This signals increasing optimism among investors and that the company's prospects continue to be promising in the coming future. Further rise in stock price is suggested.

The stock price has given a new buy signal from a rectangle formationand a break up through the resistaneat 6058 pence and now is at all time high. Further rise to 6614 or more is signaled. The stock has support at 6090 and 5730 pence respectively in the short term chart.
Investtech's outlook (one to six months): Buy

RECKITT BENCKISER GROU (RB.L) Close: 6236.005bec04af472f020181114_RB.PNG

RECKITT BENCKISER GROUP PLC has broken the floor of the rising trend channelin the medium term, which indicates a weaker initial rising rate. It also gave a negative signal from a head and shoulders formationand broke the support at 6400. Further fall to 5815 or lower is signaled. The Consumer Defensive stock chart shows that the next support is around 5600 pence.

RSI below 30 shows that the momentum of the stock is strongly negative in…

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Disclaimer:  

Disclaimer: All analyses used herin are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading.

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Reckitt Benckiser Group plc is a manufacturer and marketer of health, hygiene, post-natal and home products. The Company's segments include ENA and DvM. The ENA segment consists of Europe, Russia/Commonwealth of Independent States (CIS), Israel, North America, Australia and New Zealand. The DvM segment consists of North Africa, Middle East (excluding Israel) and Turkey, Africa, South Asia, North Asia, Latin America, Japan, Korea and the Association of Southeast Asian Nations (ASEAN). Health, Hygiene, Home and Portfolio Brands categories are split across the geographical segments of ENA and DVM. Its range of hygiene products includes disinfectant cleaners, automatic dishwashing detergents, pest control, depilatory products and acne treatments. The Company's portfolio of brands includes Durex, Mucinex, Scholl, Strepsils, Cillit Bang, Clearasil, Dettol, Harpic, Lysol, Mortein, Veet, Air Wick, Calgon, Vanish and Woolite. more »

LSE Price
6170p
Change
1.5%
Mkt Cap (£m)
43,749
P/E (fwd)
17.4
Yield (fwd)
2.9

AstraZeneca PLC (AstraZeneca) is a biopharmaceutical company. The Company focuses on discovery and development of products, which are then manufactured, marketed and sold. The Company focuses on three main therapy areas: Oncology, Cardiovascular & Metabolic Disease (CVMD) and Respiratory, while selectively pursuing therapies in Autoimmunity, Infection and Neuroscience. In CVMD, it is expanding its portfolio into the cardiovascular-renal area with late-stage assets, such as ZS-9 and roxadustat, as well as investing to explore the benefits of its SGLT2 and GLP-1 franchises in chronic kidney disease (CKD) and heart failure (HF). The Company has approximately 40 projects in Phase I, including 29 new molecular entities (NMEs), and 11 oncology combination projects. It has approximately 40 projects in Phase II, including 25 NMEs; four significant additional indications for projects that have reached phase II, and seven oncology combination projects. more »

LSE Price
7256p
Change
0.4%
Mkt Cap (£m)
95,190
P/E (fwd)
22.1
Yield (fwd)
3.2

The Procter & Gamble Company is focused on providing branded consumer packaged goods to the consumers across the world. The Company operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care, and Baby, Feminine & Family Care. The Company sells its products in approximately 180 countries and territories primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores and pharmacies. It offers products under the brands, such as Olay, Old Spice, Safeguard, Head & Shoulders, Pantene, Rejoice, Mach3, Prestobarba, Venus, Cascade, Dawn, Febreze, Mr. Clean, Bounty and Charmin. more »

NYQ Price
$119.18
Change
1.5%
Mkt Cap (£m)
245,468
P/E (fwd)
24.4
Yield (fwd)
2.6



  Is LON:RB. fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

lightningtiger 14th Nov '18 1 of 1

I like the graphs and this is a big improvement from your previous post in that these 2 companies are much better shares as can be seen with the StockRanks. Personally I like to use the Stoco charts to compare what is going up or down over the same time span.
Consider putting all 3 above and compare them. Then add BMN and see what you think? I would welcome your view.

It is easier to compare shares with the % scale on the Stoco chart which is on the top right of the chart screen and then check the time frames  1 year,6 mths 3 mths 1mth.

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