In our recent report on five undervalued consumer goods stocks, we found Altria ( MO), Procter & Gamble ( PG), Johnson & Johnson ( JNJ), J.M. Smucker ( SJM) and Scotts Miracle-Gro ( SMG) to be the current favorites of the professional stock-picking community. Altria, with a market cap exceeding $42 billion and trailing twelve-month revenue of $24.79 billion, is currently rated a buy by UBS analysts. It's worth noting that "U.S. tobacco companies have no exposure to the euro and euro-zone and should benefit in an environment with heightened risk aversion," UBS analyst Nik Modi said in an investor note. He thinks tobacco stocks still has legs. P&G has its own buy rating from Stifel Nicolaus. With a market cap exceeding $170 billion, the company has trailing twelve-month revenue $80.43 billion. Stifel Nicolaus analyst Mark Astrachan initiated coverage on shares of P&G in June with this favorable rating. Astrachan noted in the equity research report that a negative impact on P&G's profit growth from currency headwinds and less favorable commodity prices has already been factored into the stock. Wells Fargo analyst Larry Biegelsen noted in a recent equity research report that four drugs J&J launched in the U.S. last year continue to make good progress. J&J has an outperform recommendation from Wells Fargo, along with a market cap of more than $162 billion and trailing twelve-month revenue of $62.5 billion. Biegelsen said he believes that J&J is entering a period of accelerating top and bottom line growth, largely due to new product launches. J.M. Smucker, for its part, is rated a buy at Jefferies. J.M. Smucker's fourth quarter earnings per share report handily beat Jefferies' and the Street's estimates, prompting Jefferies analyst Scott Mushkin to say in a report that "Smucker's proved once again it can drive share and volume gains and better profit even against a difficult backdrop."
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