Compelling Comparisons:
As we examine the consumer staples sector there are some names that are often compared to each other that are interesting. KO and PEP have been spoken of in the same sentence, and KO was in a nice uptrend against PEP from last October to this February but has since formed a bear flag formation. Others names in the beverage group that are often put up against one another would be MNST and CELH. That ratio chart would should a solid uptrend for Monster since last December, and it is now just 5% off its most recent 52-week highs while CELH is 32% off its own annual peak. PM is showing a bear flag against rival MO. TAP was in a steep downtrend for the entirety of Q4 ’22 against BUD but is trying to put that to rest. Below is the MONTHLY ratio chart contrasting COST and BJ. Looking at how they have performed over the last one-year period one would see BJ is up 24%, and COST is lower by 12%. Over the last 3 months, BJ is higher by 6%, and COST is down 2%. Does that make either of these a buy? I think in this environment patience is imperative. BJ needs to clear the round 80 number which has been a thorn in its side since last September.