The analysts at Morningstar combed through 330 consumer sector companies and came up with a list of 10 names that comprise the firm’s new “Consumers’ Choice List.
Inclusion on the select group topped by Amazon was determined by a company’s ability to outperform Morningstar’s broader consumer sector coverage list during the next 12 to 24 months. In Amazon’s case, the company Target partnered with for a decade until last fall when it went its own way with online operations, Morningstar expects the online retailer to end 2011 with annual revenues of slightly more than $49 billion. Thanks to a 28% compound annual growth rate, within three years Amazon’s revenues are expected to double by 2014. After Amazon, other companies topping the list included Disney, eBay, Kellog, MGM Chian, PepsiCo, Sysco, Tencent, Time Warner and VF Corp.
“When selecting names for this list, we are not only focused on current and future trends, but also structural competitive advantages which can ultimately translate into long-term outsized economic returns,” according to Morningstar. “Within this large-cap sector-driven portfolio, we attempt to strike a balance between cyclical and defensive categories, while also layering in our top-down macroeconomic views.”