Polo Ralph Lauren and Unilever to Open Near 52-Week Highs

Having recovered from the recent market volatility, Polo Ralph Lauren RL and Unilever UL reached new 52-week highs of $141.71 and $33.74 per share, respectively, in yesterday's trading session. Polo Ralph Lauren easily beat EPS estimates for the most recent quarter, bought back shares and offered a strong outlook for revenue for the current quarter, as well as an operating margin outlook below the consensus. The New York-based company designs and markets apparel and accessories, as well as housewares, that can be found in department stores and online. This S&P 500 member has a market cap of $12.6 billion. The long-term earnings per share growth forecast is 13.4% and the return on equity is 20.5%. Its dividend yield is 0.6%. The P/E ratio and the PEG ratio are higher than the industry average, though. Shares are trading more than 24% higher than at the beginning of the year. The stock has outperformed competitor Liz Claiborne LIZ, as well as the broader markets, year to date. Unilever's CEO recently stated that emerging markets will make up three-quarters of its sales within a decade. Both profits and sales rose in the second quarter despite pressure on margins from rising materials costs. Unilever PLC is a subsidiary of London-based Unilever Group. Among its many offerings are Ragu, Wish-Bone, Popsicle, Lipton, Slim Fast, Dove and Vaseline. The consumer goods giant has a market cap of $96.0 billion. Unilever has a long-term EPS growth forecast of 10.8%. Its dividend yield is 3.6% and its return on equity is 32.1%. It also has P/E and PEG ratios higher than the industry average. Shares are trading more than 12% higher year to date. Over that time, the stock has outperformed competitor Procter & Gamble PG and the broader markets. Action Items: Bullish: Traders interested in consumer goods exchange traded funds might want to consider the following trades:

• Consumer Discretionary Select Sector SPDR Fund XLY: up more than 18% in the past year
• First Trust Consumer Staples AlphaDEX Fund FXG: up more than 24% in the past year
• iShares S&P Global Consumer Staples Index Fund KXI: up almost 16% in the past year

Bearish: Or traders might want to consider these alternative positions:

• ProShares UltraShort Consumer Goods SZK: up more than 8% in the past month
• ProShares UltraShort MSCI Emerging Markets EEV: up about 14% in the past month

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