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Are Defensive Sectors Still Defensive?

It's no secret that defensive industry sectors like consumer staples and utilities have been leading major U.S. stock market benchmarks to all-time new highs. But have stocks in these sectors become overvalued?The Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) tracks 42 companies within the S&P 500 involved in food and beverage, drug retailing,  household, and personal consumer products.Among the stocks within XLP that have valuations exceeding the broader market include Hershey (NYSE:HSY) with a P/E ratio of 29, Colgate-Palmolive (NYSE:CL) at 23, and Kellogg Co. (NYSE:K) at 23. By comparison, the SPDR S&P 500 ETF (NYSEARCA:SPY) carries a P/E ratio of around 15.The list of boring consumer stocks selling at a premium to the market has pushed the entire staples sector to a P/E level over 17, according to Alta Vista Research. That makes XLP the richest valued sector among the SPDR ETFs tracking the other eight S&P 500 sectors.The P/E or price earnings ratio measures stock valuatio...

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  1. Clorox 3rd-Quarter Net Rose 0.8%; Weak Charcoal Sales

    Clorox Co.'s (CLX) fiscal third-quarter earnings rose 0.8% but sales growth slowed, as the coldest March weather in more than a decade sent Kingsford charcoal sales ...

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  4. Colgate Net Falls 22% on Venezuela Devaluation

    Colgate-Palmolive Co.'s (CL) first-quarter earnings fell 22% despite higher sales as results were hurt by the Venezuelan government's devaluation of its currency.In ...

  5. Colgate-Palmolive 1st-Quarter Sales Up on Higher Volume

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  6. Colgate-Palmolive 1st-Quarter Profit Off 22% on Venezuela Devaluation

    Colgate-Palmolive Co.'s (CL) first-quarter earnings fell 22% despite higher sales as results were hurt by the Venezuelan government's devaluation of its currency.In ...

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