A top pick for growth & income

Article Excerpt

Consumer stocks tend to add stability to a portfolio. That’s because these firms sell items, like food, that consumers must buy, regardless of the direction of the economy. General Mills is a top choice in the Consumer sector. The company has been cutting expenses and raising prices in response to higher ingredient costs. This should spur long-term earnings growth, especially now that commodity prices have fallen. Lower costs will also free up cash for expansion and dividends. Moreover, General Mills should benefit from its growing international presence, as some countries may well see a faster recovery (and corresponding rise in consumer spending) than others. GENERAL MILLS INC. $65 (New York symbol GIS; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 326.6 million; Market cap: $21.2 billion; Price-to-sales ratio: 1.5; WSSF Rating: Above Average) is the second-largest cereal maker in the U.S., after Kellogg. Its main brands include Cheerios, Wheaties, Lucky Charms, Total and Chex. The company also makes a wide variety of other foods…