CAMPBELL SOUP CO. $33 (New York symbol CPB; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 342.9 million; Market cap: $11.3 billion; Price-to-sales ratio: 1.5; Dividend yield: 3.3%; WSSF Rating: Above Average) is the world’s largest maker of canned soups. It also makes Prego canned pasta and sauces, Pepperidge Farm cookies and V8 vegetable juices.

Like Heinz, Campbell aims to spur long-term growth by increasing sales in emerging markets, such as China and Russia. The company now gets 30% of its overall sales from international markets.

Campbell is also doing a good job of developing new products. For example, it now sells low-sodium soups and baked goods made from whole grains. These premium products should appeal to health-conscious consumers. These foods also generate higher profit margins than Campbell’s regular products.

In its first quarter, which ended November 1, 2009, Campbell’s sales fell 2.1%, to $2.2 billion from $2.25 billion a year earlier. Higher prices and foreign-currency gains helped offset a 4% drop in sales volumes. As well, the year-earlier sales benefited from the launch of several new products.

Despite the lower sales, earnings per share rose 14.5%, to $0.87 from $0.76. The year-earlier figure excludes a gain on a commodity hedge and other unusual items. As well, a recent restructuring helped Campbell improve productivity. And the company spent less on advertising during the most recent quarter. That’s because it shifted to in-store promotions.

The stock trades at 13.4 times the $2.46 a share that Campbell will probably earn in fiscal 2010.

Campbell Soup is a buy.