Cheap Pickings in Energy

The start of May trading got off to a rocky start Wednesday as the indices ended near session lows and lost just under 1% across the board. One theme that remains prevalent is the lack of revenue growth in the earnings reports that are deluging the market right now. Overall sales results are down slightly from a year earlier, and the reports are on pace to put in only the second negative quarter here, on average, since 2009.

One sector that seems like a perennial disappointer this quarter has been consumer staples. Unilever (UL), Proctor & Gamble (PG) and Clorox (CLX) have missed on revenue expectations and offered punk guidance. P&G and Clorox also seem to have taken decent currency hits within their reports for the quarter. I am avoiding the sector, especially given its large run-up over the first four months of the year. It seems a bit rich to pay 15x to 18x forward earnings for a sector that appears to be growing sales by 1% to 2% annually....430 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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