Q: Why is this stock classified as Consumer Discretionary as opposed to a staple? There seems to be a disconnect sometimes. For example, Molson Coors is classified as a staple yet PLC is discretionary. Obviously thought is put into these topics by experts but the service offered by PLC seems to be for a pretty non-discretionary matter!
5i Research Answer:
There are two recognized global sector classification systems, and they don't always make sense. PLC's business is not exactly discretionary, but the amount customers pay for services can and does vary with the economy. This is likely the reason for its current sector classification. It is interesting that beer is seen as a necessity and yet funerals are not. But, it is what it is. For investors who do not agree, they can always adjust their own sector weightings accordingly.