The Top 10 Consumer-Goods Stocks

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Oh, how things change. Two months ago, Mexican beverage behemoth Fomento Economico (NYSE: FMX) was rated as the best consumer-goods stock, according to a consensus of more than 30,000 rated participants in our Motley Fool CAPS community.

As for this month? Fomento gets the big old boot, failing to even crack the top 10. Instead, Motley Fool Hidden Gems selection Sadia (NYSE: SDA), a Brazilian-based poultry producer, of all things, takes this edition's No. 1 spot.

And while Greif (NYSE: GEF) remains in the top three, half of this month's list is composed of entirely new companies:

Company	Market Cap*
Sadia	$3,170
Greif	$2,800
Gildan Activewear (NYSE: GIL)	$4,270
Warnaco Group (Nasdaq: WRNC)	$1,710
Loews Carolina Group (NYSE: CG)	$8,310
American Dairy	$330
Tefron	$197
Miller Industries	$292
Aracruz Celulose (NYSE: ARA)	$7,130
Knoll	$1,260

*In millions.

You Sadia what?
It might come as a surprise that a South American meat processor could actually be the best of anything, let alone the top consumer-goods stock. After all, shouldn't household names like Altria or Coca-Cola always be in a conversation about the very best in this space? Well, when you consider that our CAPS community works together to find the most attractive stocks, rather than the most popular companies, it's understandable how a little chicken could scratch its way to the top.  

Though the avian flu epidemic continues to haunt the chicken business, Sadia's dominant market position (both domestically and internationally) gives our CAPS players a healthy feeling. Sadia's strong growth in revenues, earnings, and dividend rates is also quite appetizing. Throw in a slightly improving poultry picture, overall, and you've got a consumer-goods champ with some skills.

Also, with a P/E significantly lower than the industry average, it seems that our community is using the dark clouds of bird flu as cover to pick up points on the cheap. Shrewd Fools, I tell you.  

Some things never change
Now, even though Sadia has ousted Fomento from the top spot, and our list has five completely new faces, some important things remain the same.

All of the companies have positive earnings, the average return on equity is well above the mid-teens, and the median EV/EBITDA ratio is below 10. In other words, our CAPS community continues to favor profitable businesses selling at a discount, versus speculative ones selling at nosebleed levels. Shrewd, shrewd, Fools, I tell you.

But what do you think? Does Sadia deserve its place atop our list? How about the rest of the stocks? To get your voice heard, join Motley Fool CAPS today. Make a strong enough argument for your favorite stock, and maybe we'll have another new consumer-goods champ next time.

Sadia is a Hidden Gems pick, and Coca-Cola is an Inside Value selection. You can try either of these newsletters for free with a 30-day trial.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool has a disclosure policy.