Gavekal Capital: Drug Retail On A Roll

Thursday, February 27, 2014

Drug Retail On A Roll

While the MSCI World consumer staples sector is not the source of scorching growth, there are some decent growth opportunities. Let's start by calibrating the drug retail industry within the consumer staples sector. We calculate the average year over year growth rate embedded in analyst estimates for all companies in the MSCI World drug retail industry. On, average over the next four years, the drug retail industry possess the highest top-line growth estimates of all industries.

Analyst revisions have also been on the upswing for the drug retail industry. Here we show the 3-month change in the level of growth estimates for each of the next four years.

Revisions breadth has also been strong in the drug retail industry, with 67% of the companies experiencing rising top-line estimates over the last three months.

Top line improvements have no doubt contributed to the drug retail industry turning in the second best performance within the consumer staples sector for the last three months.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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