3 Powerhouse Stocks That Investors Should Consider

PepsiCo, Honeywell and Kraft Heinz have made sound, strategic decisions that should lead to long-term growth.
By Thomas Scarlett ,

America got some good economic news Friday morning.

The U.S. Labor Department reported that U.S. employers added 287,000 workers in June. Wall Street analysts had predicted a gain of around 170,000, so this could cause some substantial revisions in the projections of where the economy is headed.

A grim jobs number for May had prompted many analysts to turn gloomy. Meanwhile, there have been encouraging signs in manufacturing and consumer spending, and Brexit-induced concern in U.S. markets has diminished over the past couple days.

Good economic news is a boon for markets, although investors' particular interest depends largely on companies' recent performance, prudent decisions and strategy. PepsiCo, Honeywell and Kraft Heinz have all helped themselves in recent months through strong performances, and in the case of Honeywell, a smart acquisition. In addition, these high-profile brands have a history of success. They provide products and services that are in demand in good economic times and bad. 

1. PepsiCo (PEP) - Get Report

The share price of PepsiCo, which we have recommended before, jumped on Friday after the company released a better-than-expected earnings report for the second quarter. Its flavored waters and pressed juices helped drive sales. As the public has become more health conscious, Pepsi and its main rival, Coca-Cola, have had to expand their menus. New product lines now account for nearly 10% of Pepsi's revenues, nearly double that of just a few years ago.

The stock is a good long-term investment, although you might want to wait a bit before buying shares in case the stock price comes back down.

PepsiCo is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stocks here. Want to be alerted before Cramer buys or sells PEP? Learn more now.

2. Honeywell (HON) - Get Report

Honeywell has gained steam due to its acquisition of Intelligrated, a privately held supplier of automation systems. The purchase will enhance Honeywell's ability to serve e-commerce businesses and other companies that require efficient logistics systems. Intelligrated designs and produces warehouse automation systems. Meanwhile, Honeywell's China business has picked up in recent months. That region was a concern a year ago.

3. Kraft Heinz (KHC) - Get Report

Another good choice is Kraft Heinz, the world's fifth-largest food and beverage company. In addition to Kraft and Heinz themselves, the company's iconic brands include Jell-O, Kool-Aid, Lunchables, Maxwell House, Oscar Mayer, Philadelphia Cream Cheese, Planters, and Velveeta.

Kraft and Heinz merged one year ago. In its first quarter, the company increased sales while cutting costs, a byproduct of eliminating redundancies in operations and other changes related to the merger.

Kraft Heinz is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stocks here. Want to be alerted before Cramer buys or sells KHC? Learn more now.

"Our savings are coming in faster than anticipated and we're performing better where it matters most, with our customers and consumers in the marketplace," said Kraft Heinz CEO Bernardo Hees. "Consumption trends in a number of our core categories remain challenging and we're entering a critical phase in our North American supply chain integration. As we implement our plans, we will keep our focus on profitable growth while continuing to put our consumers first."

Revenues declined slightly in the first quarter, but much of that drop was related to currency fluctuations in the company's many global markets. The more important number was earnings: They jumped almost 33%. Management attributed the increase not only to cost savings but declining prices for some commodities that Kraft Heinz uses to make its foods.

The company's next earnings report will come in early August. If Kraft Heinz beats expectations, there should be a substantial bump in the stock price.

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Kraft Heinz products have been around long enough to engender strong brand loyalty, but it is also sufficiently diversified to withstand the decline of any one product's popularity. That's the key to guaranteed returns: companies with strong track records that are also forward-thinking enough to navigate today's rough seas. Our top analyst has a system that will enable you to win on at least 85% of your trades-guaranteed. To get his special report, just click here now.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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