The CAPS Screen: 10 Mouth-Watering Consumer Stocks

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.

Copyright © 2008 Universal Press Syndicate.