Sector StockRanks: Homewares & Retailers show promise

Friday, Jul 11 2014 by
Sector StockRanks  Homewares amp Retailers show promise

This week we took a look at how every sector in the market currently stacks up against Stockopedia StockRanks. StockRanks are the multi-factor calculations we use to establish where in the market every company ranks for financial and business quality, valuation, and price and earnings momentum. You can read much more about how StockRanks work here.

Comparing sectors using StockRanks is fascinating because it can highlight hotspots in the market where pockets of broadly similar companies show high or low potential as investments. But it’s worth remembering that because some sectors contain many more stocks than others, further investigation is always needed.

Consumer cyclical sectors like household goods and speciality retailers came under huge pressure during the recession as sales fell away and investors turned to defensive plays. But evidence that growing consumer confidence is getting the tills ringing again means that these sectors are gaining appeal. But how do you decide which shares are worth a closer look?

Household goods bounce back

With an average StockRank of 82/100 (100 being best) the unpopular household goods industry tops the list of high ranking StockRank sectors. Here, shares like tableware manufacturers Churchill China and Portmeirion, and carpet and floor covering companies Victoria and Headlam all have StockRanks over 95.

Churchill China, which supplies both the hospitality and household markets worldwide, reported recently that trading in the year to July had been very encouraging against strong comparatives. Its QualityRank has jumped from 64 to 95 since January and you can see from the broker chart that analysts have been upgrading their EPS forecasts all year (to 26.5p).

Floorcovering distributor Headlam has seen its share price fall from 478p to 410p since early May but the impact has been to bump up its ValueRank from 62 to 73. Over the same period,  analysts have upped their EPS forecasts for 2014 by 4p to 27.8p. Another consequence of the share price correction is that the company’s forward dividend yield has edged up from 3.2% to 3.9%.

Retailers cash in on confidence

With a median StockRank of 71/100, speciality retail also ranks highly among market sectors. There are some very wide variations in individual ranking scores among the stocks but no shortage of very high achievers. With a rank…

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Churchill China plc is a United Kingdom-based manufacturer and distributor of tabletop products to the hospitality and retail sectors across the world. The Company's customers include pub, restaurant and hotel chains, sports and conference venues, health and education establishments, and contract caterers. The Company's segments include Hospitality and Retail. The Company primarily offers ceramic tableware. The Company also manufactures and sources product sold through Retail customers for consumer use in the home, in various markets across the world. The Company offers Churchill branded manufactured products. The Company offers various types of products, such as accessories, beverage pots, bowls and dishes, cake stands, cookware, cups, mugs, cutlery, dip pots and sauce dishes, glassware, jugs, melamine items, plate towers, plates, saucers and wooden items. Its collections include Alchemy Fine China, Churchill Super Vitrified, Art de Cuisine, Sola Cutlery and Lucaris Glassware. more »

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Headlam Group Plc is a United Kingdom-based company, which is engaged in the marketing, supply and distribution of a range of floorcovering products. The Company's operations are focused on providing customers, principally independent floorcovering retailers and contractors, with a range of floorcovering products supported by a next day delivery service. The Company operates through 56 operating segments in the United Kingdom and five operating segments in Continental Europe. Each operating segment is a trading operation aligned to the sales, marketing, supply and distribution of floorcovering products. The Company's activities and facilities are located throughout the United Kingdom, France, Switzerland and the Netherlands. Its business in France operates from approximately two distribution centers and over 20 service centers, and the businesses in Switzerland and the Netherlands each operate from a single distribution center. more »

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JD Sports Fashion Plc is a multichannel retailer of sports fashion and outdoor brands. The Company's segments are Sports Fashion and Outdoor. The Company's sports fashion brands include JD, Size?, Chausport, Sprinter,, Kooga, Kukri Sports, Source Lab, Scotts, Tessuti, Cloggs, JD Gyms and Nicholas Deakins. Its outdoor brands include Blacks, Millets, Tiso and Ultimate Outdoors. Chausport operates throughout France retailing international footwear brands, such as Nike, adidas and Le Coq Sportif together with brands specific to the local market, such as Redskins. Sprinter is a sports retailer in Spain selling footwear, apparel, accessories and equipment for a range of sports, as well as lifestyle casual wear and childrenswear. Kooga designs and sources rugby apparel and equipment. Cloggs is an online retailer of branded footwear. Blacks is a retailer of specialist outdoor apparel, footwear and equipment. It has over 900 stores across a range of retail fascias. more »

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

2 Comments on this Article show/hide all

Edward Croft 11th Jul '14 1 of 2

For anyone who's been frustrated at the pace of our old Sectors page, we've just rushed out an upgrade.

There are some real issues with using single data points for sectors - like PE ratios - averages (means) get terribly skewed by outlier data points - medians are better but still suffer from noise. We have found that using averages of the blended composite ranks (StockRanks) gives a much broader sense of a sector's value/quality/momentum & growth than taking a single data point.

We've not got room for too much data at the moment so we've focused on some essential fields and added the StockRanks averages. Hopefully it's another source of useful stock ideas.

We are keeping time series of this data, so over time an interesting picture will emerge.

Personally I find this a much more useful page. Do give feedback.

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Hutch_Pod 15th Jul '14 2 of 2

This is great, thank you.

Over time will be really useful indeed. Is it possible to go back in time and select sectors to chart over a number of years?

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