8. CONSUMER GOODS
Top Pick: Coca-Cola (KO), the maker of Coke soda-pop, sells concentrates and syrups worldwide. Second-quarter profit increased 16% to $2.4 billion, or 88 cents a share, as revenue ascended 4.9% to $8.7 billion. The operating margin extended from 30% to 33%. Coca-Cola has $10 billion of cash and $12 billion of debt, equal to a quick ratio of 1 and a debt-to-equity ratio of 0.5. Its stock trades at a forward earnings multiple of 16, a book value multiple of 5.4 and a sales multiple of 4.3 -- on par or at slight premiums to peer averages. Roughly 88% of researchers following Coke rate its stock "buy."
Bullish Scenario: Credit Suisse (CS) values Coke's stock at $70, suggesting an 18% return.
Three More Top-Ranked Consumer Goods Stocks:Snap-On (SNA) General Mills (GIS) Philip Morris International (PM)