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Enjoy Alcohol Stocks -- In Moderation

Topics:Earnings | Nasdaq | NYSE | Stock Picks | Stock Market

By Greg Levine | 01 Apr 2008 | 10:21 AM ET

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Ann Gilpin, beverage analyst at Morningstar, isn't afraid of soaring commodity prices or tepid consumer spending.

"As we go into any kind of consumer slowdown, [alcohol] stocks should hold up relatively well," she maintains.

More CNBC Investment Ideas:

Gilpin explained her confidence to CNBC -- and offered her top stock picks.

Outlook

Throughout economic see-sawing of the last 50 years, "Alcohol consumption per capita in the U.S. has remained relatively flat," Gilpin said.

"Alcohol stocks are classically counter-cyclical."

Recommendations

The analyst suggests sticking with companies that have broad product reach and very deep pockets. Her No. 1 pick: Diageo [DEO Loading... () ], a "behemoth" that "dominates distribution in the U.S." and has "left rivals in the dust in developing markets."