Consumers shifted to more efficient cars in the '70s as gas soared, but drivers moved to gas-guzzling SUVs as fuel prices fell. Average car/truck MPG this year-21-is unchanged from the early '80s. Record gas prices again could change consumer demand and reshape the market.
Focus on: Wyeth (WYE)
Wyeth hit a two-year high this month as it delivers solid growth in revenue and profits. Wyeth last year generated 80% of sales from pharameuticals, 15% from consumer brands (including Advil, Centrum, Robitussin and Chapstick) and 5% from animal health. Three drugs (neuroscience therapy Effexor, gastroenterology drug Protonix, vaccine Prevnar) accounted for more than half of its U.S. pharma sales in the first half of 2005.
1. Currrent price/estimated '05 earnings per share. 2. Market cap plus debt minus cash. 3. 2004
Source: Bloomberg, company reports, Ad Age analysis
Last week's score
Stocks recovered some early week losses as falling oil prices and optimism on corporate profits overshadowed a sharp drop in consumer confidence.
AdMarket 50 1,472.36 +0.7%
DJ Wilshire 5000 12,356.01 -0.5%
Advertising Age and Bloomberg's AdMarket 50 tracks 50 top marketer, media and agency companies. Bloomberg symbol: BAAX