J&J Will Rule Consumer Goods Sector: Poll

We presented users of TheStreet with a platter of consumer goods stocks -- from J&J to Pepsi, Coca-Cola, Kimberly-Clarke, Procter & Gamble and Colgate-Palmolive -- and asked which they thought were worth watching. The results follow.
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(Consumer goods poll results updated with additional details on Colgate stock and share-price movements.)
NEW YORK (TheStreet) -- In mid-April we presented you with a platter of consumer goods stocks that we thought were worth watching, as the consumer community continues to show signs of rebounding.

Professor Jeremy Siegel from the University of Pennsylvania's Wharton School, a token bull on the economy, for example, recently noted on

CNBC

that there's been a 3.5% increase in consumption with no stimulus in the last quarter. (Granted, his counterpart, Yale University's Robert Shiller, on the same show, told

CNBC

viewers that he was worried about

a recessionary double dip.

)

Regardless, consumer staples

TheStreet

recently overviewed amid the growing evidence of an economic rebound were

PepsiCo

(PEP) - Get Report

,

Coca-Cola

(KO) - Get Report

,

Kimberly-Clark

(KMB) - Get Report

,

Procter & Gamble

(PG) - Get Report

,

Colgate-Palmolive

(CL) - Get Report

and

Johnson & Johnson

(JNJ) - Get Report

.

We wanted to know which consumer goods stocks you,

TheStreet

readers

, think will outperform the sector in the coming quarter

.

> > Bull or Bear? Vote in Our Poll

The poll results show that you think most highly of Johnson & Johnson, which garnered 28.2% of the votes. The company recently lowered its full-year guidance, even as it reported a better-than-expected first quarter; but many market observers still believe that

J&J is a good investment thesis

.

"The stock is trading at 13 times 2010 earnings and 12 times 2011 earnings for single-digit growth, so

something has to give

," Brian Gilmartin, founder and portfolio manager at Trinity Asset Management, wrote last Tuesday on

RealMoney.com

.

Meanwhile, on Thursday,

J&J raised its quarterly dividend rate

by 10.2%. Jan Wald of Noble Financial Capital Markets later pointed out that J&J's steady dividend payout is "an important component of the investment thesis people have for Johnson & Johnson."

Johnson & Johnson is trading flat at $65.03 Monday morning.

Trailing J&J in the poll was P&G, which garnered 20.3% of the votes. The stock is up 0.1% at $63.62 Monday morning.

Ahead of P&G's next earnings release on April 29,

Bank of America Merrill Lynch

analysts expect P&G's third quarter outcome and guidance to be "a positive event," with organic sales at the high end of the company's 4% to 6% range and earnings per share to meet or slightly beat the average estimate of 82 cents a share.

"PG is our top pick," B of A analyst Christopher Ferrara asserted in a investor note. "We expect accelerating sales growth and commitment to reinvestment to drive valuation higher, especially as PG regains lost share and demonstrates that competition is more rational than the market currently fears."

Meanwhile, Colgate, took 17.2% of the votes.

In an April 16 report, Jensen Portfolio manager Rob McIver told

TheStreet's

Gregg Greenberg that Colgate Palmolive is one of his top emerging market plays.

McIver said that Colgate "dominates the global market place for toothpaste," accounting for 45% for the global market in toothpaste; taking the number one position in the U.S. and Latin America. He added that the company has 80% market share and strong brands in Mexico, and that he's impressed that the company is "very careful" to reinvest in those brands.

McIver noted that 70% of Colgate's revenues are currently coming from overseas, which gives it an edge, given that the U.S. and Western Europe economies will take longer to recover from the recession. Meanwhile, the emerging markets are bursting with opportunities.

Colgate stock is up 0.6% at $83.76 in Monday morning trading.

Kimberly-Clark and Pepsi were tied at 12.6%, and Coke came in last, with 9.1% of the votes, as it buys the North American bottling business of its bottler

Coca-Cola Enterprises

(CCE)

. This, as

rival Pepsi

announced recently the company's completed acquisition of Pepsi Bottling and PepsiAmericas -- its two largest bottlers.

Kimberly-Clark shares have fallen 0.1% to $60.85, PepsiCo share have risen 0.6% to $65.12, and Coke stock has risen 0.9% at $54.34.

-- Reported by Andrea Tse in New York

RELATED STORIES:

>> Do These Six Consumer Goods Stocks Have the Goods?

>> Which Consumer Stock Will Outperform the Sector?

>>J&J: Still a Good Investment Thesis

>>J&J: Something's Gotta Give

>>J&J Ups Its Dividend

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