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The CAPS Screen: 10 Mouth-Watering Consumer Stocks

By Ilan Moscovitz May 20, 2008 Comments (0)

3 Recommendations

In Korea, diners enjoy a fermented stingray delicacy known as hongeo. This dish is also eaten in Iceland, where it is known as kaest skata. I am told it tastes like retching dipped in paraffin.

The way the market has been treating consumer stocks lately, you would think Wall Street is gazing at a supersized plate of hongeo. To see what I mean, look no further than the Consumer Discretionary SPDR index, which is down nearly 15% over the past year. Because of the mistake everyone's making now, this might be a good time to fish for consumer stocks.

With that in mind, I used our new CAPS screening tool to find out which solid consumer-goods companies the CAPS investing community is the most bullish on.

They have:

  • Market caps greater than $1 billion
  • Trailing three-year revenue growth of more than 5%
  • Price-to-earnings multiples below 25
  • Five-star ratings, the highest possible, from our CAPS community

Remember, in the first year for which we have data, five-star companies outperformed with an average gain of nearly 28%.

Company

Share Price

Market Cap (in billions)

Canon

$53.81

$67.9

Colgate-Palmolive (NYSE: CL)

$72.08

$36.6

Darling Industries (NYSE: DAR)

$14.46

$1.2

Greif

$66.48

$3.1

Industrias Bachoco

$27.85

$1.4

Johnson Controls (NYSE: JCI)

$35.89

$21.3

Paccar (Nasdaq: PCAR)

$49.99

$18.3

PepsiCo (NYSE: PEP)

$68.03

$107.9

Sadia (NYSE: SDA)

$23.27

$1.6

Tata Motors (NYSE: TTM)

$15.96

$6.2

Data from Motley Fool CAPS and Yahoo! Finance as of May 19.

Of course, true Fools know stock fishing doesn't end with just a screen. Come and join us on Motley Fool CAPS to let the collective wisdom of our 105,000-strong (and growing!) CAPS community help you make your investment decisions.

If you're looking for additional investment ideas, you can also click here to check out our Foolish Inside Value newsletter. You can read all our past recommendations, as well our top 5 ideas for new money, free for 30 days.

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Related Tickers

Colgate-Palmolive Company

CL Up! $69.88 +0.32 (+0.46%) 4:02 PM
CAPS Rating:
689 Outperforms
36 Underperforms
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Major Indices

S&P 5001,267.34+1.20%
DJIA11,384.21+1.36%
RSL 2K674.34+2.44%
NASD2,276.34+1.47%
Updated: 4:04:12 PM
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