Which stocks to explore amid record-low consumer confidence?

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Which stocks to explore amid record-low consumer confidence?

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 Which stocks to explore amid record-low consumer confidence?
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Highlights:

  • Soaring prices and rising interest rates pushed consumer confidence to record-low levels in September.
  • The consumer confidence barometer slipped to -49 this month from -44 in August, hitting the lowest level since records began in 1974.

Soaring inflation has been piling up pressure on the Brits, forcing them to cut back on their spending. On Thursday, the Bank of England (BoE) hinted that Britain economy might be in recession. Soaring prices and rising interest rates have led to consumer pessimism, even as the government tries hard to ease the cost-of-living crisis through various measures.

Despite the government's efforts, consumer confidence in September fell to a record low amid growing concerns that personal finances may rise in the coming months. The consumer confidence barometer, compiled by research group GfK, slipped to -49 this month from -44 in August, hitting the lowest level since records began in 1974.

consumer confidence decline in september

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This is also the fourth new low in the past five months, defying expectations that the government's £150 billion support package would lead to some improvement in consumer confidence this month.

The latest figures comes after the BoE announced the rise in the interest rates by half a percentage point to 2.25%. This means that borrowing for businesses and households will get more expensive, which are already struggling with the high prices. The bank is also treading a difficult path between curbing inflation, hovering around double digits now and halting economic growth.

Amid this latest data on consumer confidence, Kalkine Media® explores a few stocks on their 52-week performance.

British American Tobacco plc (LON: BATS)

The British tobacco company manufactures and sells cigarettes and other nicotine products. With a market cap of £77,825.29 million, BATS’ share price has witnessed a rise of over 28% in the past 52 weeks. On a YTD basis, its price has spiked over 26%. Shares of the company traded 0.36% lower at GBX 3,451.00 as of 8:36 am GMT+1 on Friday. The stock has an EPS of 2.97.

Imperial Brands plc (LON: IMB)

Another British FTSE 100-listed tobacco firm is Imperial Brands, among the world's largest tobacco companies. It holds a market cap of £18,148.04 million, and its EPS currently stands at 3.00. The stock price increased by 22% in the past 52 weeks and by over 17% yearly. As of 8:41 am GMT+1 on Friday, the stock was trading at GBX 1900.00, down 0.50%.

Compass Group Plc (LON: CPG)

Compass Group is a UK-based contract foodservice firm listed on the FTSE 100 index. It presently holds a market cap of £32,006.51 million and a positive EPS of 0.20. Over the past 52 weeks, the stock price has jumped over 23%, while it has increased by over 9% on a year-to-date basis. Shares of Compass Group were trading at GBX 1,806.00, down 0.58% at 8:48 am GMT+1 on Friday.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

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