Why Shares of Consumer-Facing Companies Are Down Today
Wall Street was in sell mode again on Thursday, sparked by a new wave of COVID-19 coronavirus travel restrictions and uncertainty about the U.S. plan to steady the economy during this crisis.
The sell-off was broad based. Anheuser-Busch Inbev (NYSE: BUD) is down 16%, while a number of other consumer-facing companies including Walt Disney (NYSE: DIS), Twitter (NYSE: TWTR), Chipotle Mexican Grill (NYSE: CMG), and Hasbro (NASDAQ: HAS) were all down 10% to 12% each.
Anheuser-Busch Inbev is actually down despite an analyst upgrade, with RBC Capital analyst James Jones upping the company to outperform from sector perform. In a note, Jones said that while 2019 results were "underwhelming," the shares are now undervalued. The note echoed comments made by Argus analyst John Eade on Wednesday, who said the recent weakness in the shares is a buying opportunity.
Source Fool.com
