Conor Swift-Christian

Bus 110-32
September 19 2017

STOCK MARKET PROJECT PART 1

INDUSTRY A: Consumer Staples

1. Consumer staples products include essential products people use everyday like food,
beverages, and household items. These are goods people wont cut because of the
need and demand for them everyday. Companies in this industry are trusted because
they are known to be defensive and normally dont be affected negatively during times
of economic downturn.

2. A strong economy would impact consumer staple industry positively as the industrys
performance is good and its still growing. In a weak economy it would hurt the industry
because of food deflation and oversupplies of products which would impact the stocks
negatively.

3. The Consumer Staples Industry is expected to do well considering the current state of
the economy, and it can grow in the upcoming days. Plus it is also expected that this
industry will rarely face market bumps from a steep in the market. It is expected to
continue having high consumer spending in the upcoming months considering the
current state of economy. It looks also that there will be no major decline as well

4. In the upcoming months, economists predict that the Consumer Staples industry to
continue in strength from confidence from consumers and expect it to rise in the third
quarter which means it would be a good time for consumers to invest into this industrys
stock. Thus meaning high consumer spending which also translates to the economys
growth. Overall, the outlook is looking positive as Consumer Staples industry is
predicted to grow as it looks like it is a very attractive industry for consumers to invest in.

INDUSTRY B: Utilities

1. The utilities industry consists of products from electric, gas and water companies and is
known for generating consistent recurring income by charging its consumers and
businesses that have higher than average dividend yields.

2. This industry would be impacted heavily in a weak economy as it is a very demanding

industry in this advanced world now. The stocks would decrease if it cant generate
enough revenue and keep up with the consumers and high demand with new products,
which would impact the volume and make it slower. In a strong economy it would sky
 rocket as this industry is demanding and would be stable since many consumers need
utilities such as gas and water. A big impact, however, is definitely from natural
disasters. A recent disaster, caused by hurricane Harvey, struck Texas which hurts the
utilities industry in earnings in that region.

3. The Utilities Industry is expected to decline in the upcoming months as interest rates
have climbed and made it expensive. This is said to limit the industrys ability to pay
dividend and buyback shares.Thus lowering attractiveness to consumers who would
want to invest, which may lead consumers/investors into doing bonds instead.

4. Despite the expectations of decline, economists believe the outlook will be positive in the
upcoming months. Despite the mild weather which lowered demand for the utilities and
attractiveness, factors like cost control, new electric rates, and a growth with consumers
has helped so far with really good earnings for the industry from the second-quarter
period. For the third quarter, earnings are predicted to increase 4% for the S&P 500.
Revenues are also predicted to be improved by .7% compared to a 4.8% improvement
in the S&P 500. Earnings are also planned to increase 2.1% from the 4.4% improvement
in total revenues in 2017.

INDUSTRY C: Health Insurance

1. Types of products in the Healthcare Industry include biotechnology companies, hospital

management firms, medical device manufacturers, etc. This stock is considered to have
opportunities for growth and carry a defensive strategy as no matter the trend, people
will require medical aid someway or another.

2. The impact the Health Care industry has on the economy is huge. It makes up for about
one sixth of the economy in this country; the most out of any other industry/sector.
Spending costs us a lot especially for consumers not knowing how much they put in, all
they care for is getting covered. Although it is also growing, the higher the price and
spending, the more limited the federal government and business owners become in
investing in something else since most of spending is in health care. Another issue is
that the taxes raise on the price for those insured because it covers those not insured
used from the federal government. Thus also limiting them with the tax money they
receive to invest it on something else big and growing like energy.

3. The Health Care Industry is expected to struggle with growth, especially within the
process of repealing the current health care plan Affordable Care Act and unless the
federal government increases interest rates, it will continue to struggle with growth for
this year. Thus most stocks are expected to trend downhill, however there are some in
which one can invest in that could possibly help on the positive growth for health
insurance stocks.
4. The Health Care Industry is predicted to struggle in the upcoming month since of the
slow growth and with a decline in most stocks in this industry. Despite the contrary, there
 are some stocks with some upside in them people can invest in, but it is very risky
considering the process of repealing ACA (Affordable Care Act) which can drastically
impact the industry considering about 23 million people are currently insured through
the ACA ,but there are claims it will lower the deficit and spending in this industry.
Regardless of what happens to the act, the industry in its current state will still have to
battle with the spending and interest rates as well as the decline and slow positive
growth for these upcoming months.

COMPANY A: McCormick & Company (Food Industry/Consumer Staples)

1. McCormick & Co was founded in 1889 by Willoughby McCormick in Baltimore, Maryland

2. The headquarters for McCormick & Co is currently located in Sparks, Maryland

3. The number of employees McCormick & Co has is over 10,000 and growing.

4. The current CEO of McCormick & Co is Lawrence E. Kurzius.

5. The initial public offering (IPO) from McCormick & Co was made in 1999

6. As of now McCormick & Co is considered pretty pricey and steep according to some
economists. The company has had constant and consistent growth before and could end
up going up. The revenue has gone up but very slowly. It can invested but not sold right
away as it has been inclining slowly along with a few drops. Thestreet.com has given the
stock an A- which means and mostly recommends on buying, but not selling. MKC is
considered a low growth stock. MKC operates under the Processed & Packaged goods
segment from consumer staples sector, and it is considered a top player amongst its
peers, being more profitable among the average in this segment. It is relatively
expensive amongst its group as its P/E is 26 (the average is 12.62). The
recommendation for MKC is 2.80. If its not that low, then it isnt worth it and its better to
hold off until it drastically declines. Furthermore, incorporated insiders have bought a net
of over 3,000 shares during the past three months which translates to a more bull look,
meaning they believe it will only increase from here on out. Zacks.com gives it a 3, which
is hold. What you want from a site like zacks is a 1, which means buy. MKC hasnt had
any eye popping trends in the exchange recently as its been slow and steady, but
nothing dramatic. Right now its valued at 98 USD and had a .28% decline this past day.
MKC has had a steady and consistent trend on the stock market, but again nothing to
quite invest in yet as you wouldnt be getting any gains out of it. MKC has rarely
dropped very low and climbed very high in the past year. Its value has stayed around
90-99 in USD. The only peaks happening this past summer at 105 USD. MKC is also not
in a rapidly growing industry so as of now it has not peaked much attractiveness nor
attention for investments.
COMPANY B: Eversource Energy (Utilities=Electric Power)

1. Eversource Energy was founded on July 1st, 1966

2. Eversource Energys headquarters are located in Hartford, Connecticut and Boston,

Massachusetts

3. Eversource Energy currently has about 8,000+ employees employed.

4. The current CEO of Eversource Energy is James J. Judge

5. There is no record I could find for the IPO of Eversource Energy

6. The stock value was 61.77 USD today for ES, which was raised up 13 percent today.
However, ES is not known for steep climbs as over the years it's had only about 11%
increase and despite its decent climb over the past 5 years, it has never truly captured
anyones attention as its growth has been consistently slow. Analysts say it may rise a
little but do not invest as it has not had any tremendous peaks, and no peaks of interest
for consumers. ES has had an average gradual incline. Its not like its going straight
downhill, so it holds potential, just not a lot of value and attractiveness at the moment.
Considering this company is and operates in connecticut, massachusetts, and New
Hampshire, it doesnt have as many customers as other electric and gas companies do.
There are not many analysts speaking much about this stock despite dividend changes.
Zacks.com even ranked ES in its industry rank in the bottom 40% of 265 companies.
According to Zacks.coms style scores, ES is scored a C in value, D in growth, and A in
momentum. The value is pretty good considering how many people really know this
company exists outside of the regions it operates in. Zacks.com has also given the
company a 3 which means hold. It wouldnt be smart to invest in a still company, at least
not for now. Despite ESs gain today, it is nothing good enough for people to hook on
and invest. For ES to do that they would need a steeper and faster climb providing better
values as well. This stock is also relatively expensive for being a hold stock as its just
about the same trend with McCormick. Unlike McCormick, in a seven month span, ES
has risen from 51 USD back in December 1st of 2016 to 61 USD now. That is not a huge
change in matter of 7 months but at least ES is on an incline. This incline could have
potential to skyrocket soon, but as of now there is no bull nor bear views for this stock as
it remains being left on hold.

COMPANY C: Aetna Incorporation

1. Aetna Life Insurance is founded in 1853 in Hartford, CT.

2. The current headquarters for Aetna is located in Hartford, CT.

 3. There are more than 47,000 people currently employed at Aetna

4. The current CEO of Aetna is Mark T Bertolini

5. The IPO of Aetna was made in 1899 and became one of the first stock companies to
enter the health insurance business. It was only offered to those who had Aetnas life or
accident policy or were looking to purchase one.

6. Aetna currently is recommended to be bought as it has had a upward trend over the past
2 months. With the companys investments in improving their health insurance and
making it more based around the consumer. In the last four quarters, Aetna surpassed
the estimates and came up with an average in positive earnings of 19%. AET also has
been ranked a 2 on zacks.com which means to buy. It also has been given a value score
of B which is pretty good. Aetnas share price has also done very well this past year,.
Having currently a 31.6% which is over the average in the industrys growth of 27%.
Aetna has grown very attractive to consumers and investors as everything has climbed
dramatically. AETs earnings of share has grown over the years. AET has also taken
grip of cost control. AET themselves predict for the rest of 2017 that the expense ratio
will also increase AETs ROE (return on equity) has increased over the years and only
has boosted AETs potential. AETs EPS (earnings per share) annually is about 4.51,
which shows how profitable it is on a share owners. and currently a ROA (return of
assets) of 3.71, and a high ROA means more profits out of their assets. It also has a
ROE (return on equity) of 13.36 which is very good for the company as it shows it has
kept well with management. There is also a high ROIC (Return on Invested capital)
which is 7.46. Although it is considered a 2 on zacks.com, there is much to consider
before investing. For one the growth is ranked an F currently and the momentum is a D.
The stock has been dropping recently, which could mean a cheaper buy for investors. It
is a risk but if it gets any cheaper it could be a good investment since it has a record of
rebounding from drops and over this year it is still on an incline, just very slow.

SOURCES:

www.Zacks.com

Aetna Inc (AET) Shares Moving on Volume. Stock Talker, . Published

September 19.2017. Accessed on September 20. 2017.
 Why Aetna (AET) Could Be a Top Value Pick. Yahoo! Finance, Yahoo!. Published
August 21. 2017. Accessed 20 September.2017.

www.aetna.com

5 Reasons Why You Should Buy Aetnas (AET) Stock Right Now. NASDAQ, Published
18 September.2017. Accessed 20 September 2017.

Speights, Keith. These Health Insurance Stocks Just Hit All Time Highs: Buy, Sell, or
Hold? The Motley Fool. Published 6 June. 2017. Accessed 19 September. 2017.

Gomez, Annette. These Stocks are Flying High, But Dont Go Contrarian Yet:
Hanesbrand Inc. (HBI), Eversource Energy (ES). The Stock Journal. Published 19 September.
2017. Accessed 20 September 2017.

Www.eversource.com

www. Thestreet.com

www.mccormickcorporation.com

www.nasdaq.com

Salazar, Jennifer. Financial Analysis: McCormick & Company, (MKC) and Bunge
Limited (BG). The Ledger Gazette. Published 18 September. 2017. Accessed 19 September.
2017.