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Hunting For Value in Consumer Staples Stocks

Thursday, 8 Jan 2009 | 10:56 AM ET

Will Nasgovitz, portfolio manager of Hartland Advisors told CNBC he sees a few consumer staples stocks that will help boost portfolios.

Value Plays vs. Value Traps
Whether investors should start hunting for value in this market, with David Goerz, Highmark Capital and Will Nasgovitz, Heartland Advisors

“The discretionaries have been dismal,” said Nasgovitz. “The consumer is pulling back, people are eating out less, we’re dusting off our cookbooks, we’re asking relatives for new recipes and that’s good for [consumer staples stocks’] top-line.” (See the video clip for the full interview...)

Recommendations:

Safeway Grocery Store —“They’re trading at 10 times earnings…and are going to be a cash flow machine next year. They’re going to have a growth of $700 million of free cash flow versus [over] $500 million this year, and maybe a billion in 2010…”

Hormel Foods —“We think there’s a real margin opportunity...It’s a company with a great balance sheet, a nice dividend, a leader in the space.”

Disclosures:

Disclosure information was not available for Nasgovitzor or his company.

Disclaimer

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