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S&P 500 leaders and losers + Two companies defying inflation

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S&P 500 leaders and losers + Two companies defying inflation

A quick fix of the latest financial happenings.

Carter Kilmann
Oct 28, 2022
4
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S&P 500 leaders and losers + Two companies defying inflation

www.stockduediligence.com

Good morning, investors!

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Without further ado…


Your S&P 500 Leaders and Losers

With the holiday season ahead of us, let’s take a look at the leaders and laggards within the S&P 500, who collectively represent our beloved “market.” 

There’s not much to garner from the leaders other than it’s clearly been a good year for energy, specifically oil and gas. (Shocker.)

Dredging the gutters of the market, we find an eclectic group of companies. Here are a few highlights:

  • Facebook continues its descent, potentially into the social media catacombs? For their sake, the metaverse better pay off. 

  • Two of the biggest names in semiconductors have endured a drubbing (Nvidia and AMD). Point at any of the usual suspects: high inflation, rising interest rates, lower demand, and ongoing supply chain constraints. 

  • Dating is overrated — or, at least, from an investing standpoint. Match Group has shed two-thirds of its value this year.


Two Companies Defying Inflation: Coca-Cola and PepsiCo

Coupling inflationary pressures with circulating fears of a lengthy global recession, it’s only natural for people to tighten their belts and cut back on discretionary purchases. Apparently, that doesn’t apply to soft drinks. 

While the S&P 500 has slumped 20.1%, Coca-Cola and PepsiCo have generated positive returns in 2022 — a surprise considering the consumer discretionary sector as a whole has been walloped. (The Consumer Discretionary Select Sector SPDR Fund is down 31.1%.) 

Both beverage behemoths padded their product pricing this year, leading to strong year-over-year growth in Q3 — PepsiCo revenue was up 7%, while Coca-Cola revenue was up 10%. Although both expect costs to continue trending upward, they raised their revenue and profit guidance for Q4. 

“The investment we've made in the brands in the last few years are paying off in the sense that our brands are being stretched to higher price points and consumers are following us in Europe and in other parts of the world.” — PepsiCo CEO Ramon Laguarta


Three Eye-Opening Tweets

And finally, we close with three eye-opening tweets. 

Companies hit the brakes on advertising.
Twitter avatar for @MT_Capital1
MT Capital @MT_Capital1
The YoY change in Advertising Spend by medium:
Image
12:49 PM ∙ Oct 27, 2022
20Likes3Retweets
Facebook investors are crying too, Jim.
Twitter avatar for @buccocapital
Bucco Capital @buccocapital
Facebook threw up such a bad quarter it made Jim Cramer tear up and apologize to his viewers for being so wrong. That’s something. This video is a modern classic
4:22 PM ∙ Oct 27, 2022
2,655Likes358Retweets

Not even Amazon is safe.

Twitter avatar for @unusual_whales
unusual_whales @unusual_whales
This isn’t a cryptocurrency or a pennystock. This is one of the world’s most nearly trillion dollar companies, Amazon, $AMZN, down nearly 20% in after hours:
Image
8:15 PM ∙ Oct 27, 2022
1,714Likes341Retweets

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