The press has been reporting that actress Denise Richards wants ex-husband Charlie Sheen to father her next baby, according to Sheen. There were rumors circulating in the news that Angelina Jolie may be pregnant with Brad Pitt's baby. TV actress Jill Hennessy of Crossing Jordan is six months pregnant with her second child. Actress Helena Bonham Carter, who starred in Harry Potter, is pregnant with her second child. Actress Samantha Morton, the Minority Report star, is pregnant with her second child. Actress Sara Gilbert, who starred on the 'Roseanne' TV show, just gave birth to a baby girl. Spice Girl Emma Bunton just had a baby. Actress Jennifer Garner recently had a baby. Is having a baby the 'in thing' now?
Is there a way to play the Baby Sector? Here is a list of several companies which generate revenues from babies to some degree.
Target (TGT) is the fifth largest retailer in the United States, the fifth largest retailer of music, and the largest seller of gift cards. For babies, it sells toys, clothing, health products and bedding. The stock has a price earnings to growth ratio of 19 and a PEG of 1.17, with a yield of 0.9%.
Wal-Mart (WMT) is the largest toy seller in the world, and is the largest private sector employer in the world. It controls approximately 45% of the retail toy business in the United States. It also sells numerous products for babies. The stock has a P/E of 16.7 and a PEG of 1.17, with a yield of 1.9%.
Mattel's (MAT) is the world's largest toy company based on revenues. Their Fischer Price division makes Babygear Products, including baby monitors, booster seats, bouncers, car seats, high chairs, play yards, strollers, baby swings, tubs, and potties. It also sells various Disney (DIS) Winnie the Pooh products, and various Sesame Street products. The stock has a P/E of 16.5 and a PEG of 1.48, with a yield of 2.9%.
Kimberly-Clark Corporation (KMB) is the manufacturer and distributor of Huggies disposable diaper, along with other paper products, such a Cottonelle toilet paper and Kleenex tissues. The stock has a P/E of 18.24 and a PEG of 2.14, with a yield of 3.1%.
Procter & Gamble Co. (PG) sells Pampers, the most popular brand of disposable diaper in the world, Dreft, a popular brand of baby laundry detergent, Luvs, a budget brand of disposable diapers, along with numerous other personal care products. The stock has a P/E of 21.13 and a PEG of 1.61, with a yield of 2.2%.
Nestlé (NSRGY.PK), the Swiss company, owns Gerber Products Company, a major producer of baby food. They also are the largest producer of baby formula in the world, as the manufacturer of Good Start.
Bristol-Myers Squibb (BMY) is one of the Top 100 companies for working mothers according to Working Mother Media. Their division, Mead Johnson, manufactures Enfamil baby formulas and Tri-Vi-Sol and ConvaTec infant vitamin supplements. BMY also makes numerous other pharmaceuticals and health care products. The stock has a P/E of 35.58 and a PEG of 1.46, with a yield of 4%.
Abbott Laboratories (ABT) division, Ross Pediatrics, makes Similac-LF (lactose free), Similac Advance, Isomil Advance and NeoSure Advance infant formulas. Abbott also makes numerous other health care products and pharmaceuticals. The stock has a P/E of 43.35 and a PEG of 1.63, with a yield of 2.4%.
Wyeth (WYE) makes Prevenar, the first and only pneumococcal conjugate vaccine for infants and one of Wyeth's top revenue producers. It also has various brands of infant formulas, along with various types of pharmaceutical products. The stock has a P/E of 14.23 and a PEG of 1.9, with a yield of 2.1%.
Johnson & Johnson (JNJ) is well known for its JOHNSON'S Baby products division. J&J owns the Baby.com website and the BabyCenter.com website. They also make AVEENO Baby wash and cream, Johnson's Baby Bath, Baby Wash, and Baby Bar, NO MORE RASH™ Diaper Rash Cream, Johnson's Baby Lotion, Baby Oil, Baby Powder, and Baby Shampoo. They even make a Baby Cologne! The stock has a P/E of 17.02 and a PEG of 1.98, with a yield of 2.7%.
Author owns MAT and PG.
By Fred Fuld at Stockerblog.com.
Picture courtesy U.S. Government CDC.