Top 5 Consumer Stocks To Buy Right Now

The tobacco industry is one of the most profitable markets for investors, given its large margins and shareholder returns. However, these past few years governments all over the world have been tightening up on regulatory laws and raising taxes, therefore reducing consumer volume of cigarettes. But the largest tobacco company worldwide, supported by investment gurus Joel Greenblatt (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio), has successfully sustained its product demand and steadily increased revenue. So, let�� take a look at its business model and what the future holds in store.

A Powerful Brand Portfolio and Emerging Market Presence

Phillip Morris International Inc. (PM) is the world�� largest tobacco manufacturer in the world, after China National Tobacco, and holds 29% of the entire industry�� market, outside the U.S and China. Most commonly known for its flagship brand, Marlboro (accounts for one-third of total volume), this firm also owns seven of the 15 international leading cigarette brands. Its supporting brands ���&M, Phillip Morris, Bond Street, Parliament, Chesterfield and Lark ���ave allowed the company to attain consistent growth margins over the past decade. Given its addictive product and global manufacturing and distribution system, this comes as little surprise.

Top Services Companies To Buy Right Now: Green Mountain Coffee Roasters Inc.(GMCR)

Green Mountain Coffee Roasters, Inc. engages in the specialty coffee and coffee maker business. The company sources, produces, and sells approximately 200 varieties of coffee, cocoa, teas, and other beverages in K-Cup portion packs and coffee in traditional packaging, including whole bean and ground coffee selections in bags and ground coffee in fractional packs for use in at-home (AH) and away-from-home (AFH). It sells its products primarily in North America through supermarkets, club stores, and convenience stores; in restaurants and hospitality; and to office coffee distributors, as well as directly to consumers through its Website. The company also manufactures gourmet single-cup brewing systems and brewing equipment. In addition, it sells AH single-cup brewers; accessories; and coffee, tea, hot cocoa, and other beverages in K-Cup portion packs, as well as offers other licensed roasters to retailers, department stores, and mass merchandisers. Further, the company sells AFH single-cup brewers to distributors for use in offices. It provides its products under the Van Houtte, Br�erie St. Denis, Br�erie Mont-Royal, and Orient Express brands, as well as licensed Bigelow and Wolfgang Puck brands. The company was founded in 1981 and is based in Waterbury, Vermont.

Advisors' Opinion:

• [By Jack Kramer and Nick Martell] What's the best way to share your enthusiasm for stocks reaching new records? "Primp" your dog to look like a panda. (It's the cool thing to do in China right now, according to the New York Post. Seriously.) The Dow Jones Industrial Average (DJINDICES: ^DJI  ) (DJINDICES: ^DJI  ) gained 20 points Tuesday, touching a new all-time high midday.
  1. Cosmetics giant Elizabeth Arden delivers ugly earnings
  It's too bad you can't put some foundation and blush on a corporate earnings report to make it look better. That's what the cosmetics chemists over at makeup giant Elizabeth Arden (NASDAQ: RDEN  ) wish they had done after the stock fell 22.8% Tuesday following its unattractive earnings report -- revenue fell 20% last quarter to $210.8 million, well below the $256.9 million Wall Street expected.
  
  Unlike everyone's favorite model, Heidi Klum, Elizabeth Arden struggled all across Planet Earth to kick off 2014. In North America, sales fell 23% as the company launched fewer fragrances than usual and dealt with the brutal winter weather deterring beauty-seeking consumers. And despite Arden's presence in 120 countries worldwide, international sales fell 16% after management "strategically decides" to reduce its shipments to avoid giving out brand-hurting discounts at the end of the season.
  
  The takeaway is that Elizabeth Arden is trying to get picked up like it's on a corporate date. Just last month, Household Health & Care announced that it was interested in purchasing Arden. So during the earnings report, the company tried to please investors by mentioning that it's working with Goldman Sachs, as if the bank is a matchmaker, to explore "strategic options" for its future.
  2. Green Mountain Coffee Roasters enjoys some Coke love
  It was a caffeine surge for Keurig Green Mountain (NASDAQ: GMCR  ) after soda giant Coca-Cola (NYSE: KO  ) announced Tuesday it will buy millions more share
• [By Ben Levisohn]

  Nordstrom (JWN) gained 15% this week after beating earnings and announcing that it would try to sell its credit card receivables, while Fossil Group (FOSL) plunged 7.8% to $101.90 after offering disappointing guidance, making it the benchmark’s biggest loser. Keurig Green Mountain (GMCR) gained 5.5% after Coca-Cola (KO) upped its stake in the company.

• [By Paul Ausick]

  Among heavily traded Nasdaq stocks Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) posted a gain of 7.65% to close at $119.40 after posting a new 52-week high of $120.24. The stock�� 52-week low is $42.25. The company�� deal with The Coca-Cola Co. (NYSE: KO) continues to boost. Trading volume was nearly double the daily average of around 4 million shares traded.

• [By Ben Levisohn]

  Last night, Coca-Cola’s (KO) partnership with Green Mountain Coffee Roasters (GMCR) was the pop heard round the world, as Coke placed a big bet on home carbonation. Today, investors are trying to figure out what it means for SodaStream International (SODA) and its own home carbonation business.

Top 5 Consumer Stocks To Buy Right Now: Dr Pepper Snapple Group Inc (DPS)

Dr Pepper Snapple Group, Inc. (DPS), incorporated on October 24, 2007, is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico with a diverse portfolio of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks and mixers. The Company operates in three segments: Beverage Concentrates, Packaged Beverages and Latin America Beverages. The Company primarily serves two groups of customers: bottlers and distributors and retailers. As of December 31, 2011, it operated 20 manufacturing facilities across the United States and Mexico, excluding its manufacturing facility for its joint venture with Acqua Minerale San Benedetto. Effective March 1, 2013, it acquired Dr. Pepper/7-UP Bottling Co of the West, a producer and wholesaler of bottled soft drinks.

Beverage Concentrates

The Company�� Beverage Concentrates segment is principally a brand ownership business. In this segment the Company manufactures and sells beverage concentrates in the United States and Canada. Most of the brands in this segment are CSD brands. Its brand portfolio includes CSD brands, such as Dr Pepper, Sunkist soda, 7UP, A&W, Canada Dry, Crush, Squirt, Penafiel and Schweppes. Beverage concentrates are shipped to third party bottlers, as well as to its own manufacturing systems, who combine them with carbonation, water, sweeteners and other ingredients, package it in PET containers, glass bottles and aluminum cans, and sell it as a finished beverage to retailers. Beverage concentrates are also manufactured into syrup, which is shipped to fountain customers, such as fast food restaurants, who mix the syrup with water and carbonation to create a finished beverage at the point of sale to consumers. Its Beverage Concentrates brands are sold by its bottlers, including its own Packaged Beverages segment, through all retail channels, including supermarkets, fountains, mas! s merchandisers, club stores, vending machines, convenience stores, gas stations, small groceries, drug chains and dollar stores.

Packaged Beverages

The Company�� Packaged Beverages segment is principally a brand ownership, manufacturing and distribution business. In this segment, it primarily manufacture and distribute packaged beverages and other products, including its brands, third party owned brands and certain private label beverages, in the United States and Canada. Key NCB brands in this segment include Hawaiian Punch, Snapple, Mott's, Yoo-Hoo, Clamato, Deja Blue, AriZona, FIJI, Mistic, Nantucket Nectars, ReaLemon, Mr and Mrs T, Rose's and Country Time. Key CSD brands in this segment include 7UP, Dr Pepper, A&W, Sunkist soda, Canada Dry, Squirt, RC Cola, Big Red, Sun Drop, Diet Rite, IBC and Vernors. Approximately 87% of its 2011 Packaged Beverages net sales of branded products come from its own brands, with the remaining from the distribution of third party brands, such as Big Red, AriZona tea, FIJI mineral water, Neuro beverages, Vita Coco coconut water and Hydrive energy drinks. A portion of its sales also comes from bottling beverages and other products for private label owners or others, which is also referred to as contract manufacturing. Its Packaged Beverages��products are manufactured in multiple facilities across the United States and are sold or distributed to retailers and their warehouses by itsown distribution network or by third party distributors. The Company sells its Packaged Beverages��products both through its Direct Store Delivery system (DSD), supported by a fleet of approximately 6,000 vehicles and 12,000 employees, including sales representatives, merchandisers, drivers and warehouse workers, as well as through its Warehouse Direct delivery system (WD), both of which include the sales to retail channels, including supermarkets, fountain channel, mass merchandisers, club stores, vending machines, convenience stores, gas stations, small groce! ries, dru! g chains and dollar stores.

Latin America Beverages

The Company�� Latin America Beverages segment is a brand ownership, manufacturing and distribution business. This segment participates mainly in the carbonated mineral water, flavored CSD, bottled water and vegetable juice categories, with particular strength in carbonated mineral water, vegetable juice categories and grapefruit flavored CSDs. Its brands include Squirt, Penafiel, Aguafiel, Crush and Clamato.

In Mexico, it manufactures and distributes its products through its bottling operations and third party bottlers and distributors. In the Caribbean, it distributes its products through third party bottlers and distributors. In Mexico, it also participate in a joint venture to manufacture Aguafiel brand water with Acqua Minerale San Benedetto. The Company sells its finished beverages through Mexican retail channels, including mom and pop stores, supermarkets, hypermarkets, and on premise channels.

The Company competes with The Coca-Cola Company (Coca-Cola), PepsiCo, Inc. (PepsiCo), Nestle, S.A. (Nestle), Kraft Foods Inc. (Kraft) and The Cott Corporation (Cott).

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of PepsiCo have gained 1.6% to $81.89, while Coca-Cola (KO), which released earnings yesterday, has risen 0.6% to $37.88 and Dr. Pepper Snapple (DPS) has advanced 2.1% to $44.68.

• [By Ben Levisohn]

  Shares of Dr. Pepper (DPS) have been trouncing those of Coca-Cola (KO), PepsiCo (PEP) and even Monster Beverage (MNST) this year–but today it’s getting pounded thanks to a Citigroup downgrade.

  Sure, it’s been a great year for Dr. Pepper Snapple. It’s gained 21% so far this year, easily besting PepsiCo’s 6.5% rise, Monster Beverages 6.9% advance and Coca-Cola’s 1.4 % increase. Now, however, it’s time for Dr. Pepper’s shares to “take a breather,” explain Citigroup’s Wendy Nicholson and Peter Chun:

  Dr. Pepper Snapple has appreciated 22% year-to-date, far outpacing Coca-Cola, PepsiCo, Monster Beverage and the S&P500. This relative outperformance comes despite Dr. Pepper Snapple’s outlook for only 0%-1% top line growth (with volumes expected to be down more than 1%) and 6%-8% EPS growth in 2014. With this big move in the stock now behind us, we downgrade�Dr. Pepper Snapple to a Neutral rating. Our reasons for the downgrade are as follows:

  ��U.S. CSD category growth has improved, but not by much;
  ���r. Pepper Snapple intends to reduce ad spending while its big competitors intend to increase it, and we fear that this could pressure�Dr. Pepper Snapple’s market shares;
  ��Snapple has historically been an iconic brand, but it is too small to really move the needle for Dr. Pepper Snapple , and overall,�Dr. Pepper Snapple’s stills portfolio is struggling;
  ���r. Pepper Snapple’s RCI initiatives are impressive and ongoing, but despite lower advertising spending this year, we don�� expect much margin expansion, and we wonder if the balance sheet improvements are largely behind us;
  ��From a stock market perspective, investor rotation away from EM�� (which has benefitted Dr. Pepper Snapple) has probably largely played out;
  ��DPS�� cash flow has been terrific for a while ��but an extra ��iss��from either Coca-Cola or Pep

Top 5 Consumer Stocks To Buy Right Now: Latteno Food Corp (LATF)

Latteno Food Corp. (Latteno), incorporated on August 24, 1994, is engaged in acquiring, organizing, developing and upgrading companies in the international food and beverage market. Latteno is specializing in the dairy industry and coffee industry. The Company operates through its subsidiary in Brazil. On February 10, 2010 Latteno acquired Global Milk Businesses and Administration of Private Properties Ltda. (Global Milk). Global Milk holds the rights of certain intellectual property of the brand name products manufactured and sold under the brand name Teixeira. In March 2013, the Company acquired Green Cannabis Collective Inc.

Latteno is leasing an instant and roasted coffee factory located in Cruzeiro, Sao-Paulo, which was property the Company previously owned under its BDFC Brasil Alimentos Ltda (BDFC) subsidiary. In addition to the lease, the Company has maintained ownership of four brand names, Samba Cafe, Vivenda, Torino and Brazilian Best, used in the past by Latteno to sell its instant and roasted coffee across the world. The Company engaged the service companies to assist with its operations, such as Log-Frio Ltda, SigaSolutions Ltda, Microsiga Ltda and Varistao Transportes Ltda.

The Company competes with Nestle, Companhia Cacique de Cafe Soluvel, Cafe Soluvel Brasilia and Companhia lguacu de Cafe Soluvel.

Advisors' Opinion:

• [By James E. Brumley]

  A week and a half ago when I suggested Latteno Food Corp. (OTCMKTS:LATF) was an effective way of getting into the medical marijuana craze for anyone who missed the big runups (the first or the second time) from names like Medical Marijuana Inc. (OTCMKTS:MJNA) or Hemp, Inc. (OTCMKTS:HEMP), not many people agreed with my assessment. That's the nice way of saying I received some "colorful counter-opinions" to my bullishness on LATF. Indeed, some readers were downright enraged I would dare compare the company to stocks like MJNA or HEMP, citing reasons ranging from the possibility that it's a complete scam to the possibility that the capital structure as amazingly unfair to current shareholders.

• [By James E. Brumley]

  What do you get when you cross a Coffee Holding Co., Inc. (NASDAQ:JVA) with a Medical Marijuana Inc. (OTCMKTS:MJNA) and a Kraft Foods Group Inc. (NASDAQ:KRFT)? No, it's not a setup for a punch line - there's a legitimate answer. And that answer is, Latteno Food Corp. (OTCMKTS:LATF).

• [By James E. Brumley]

  What do you get when you cross a Coffee Holding Co., Inc. (NASDAQ:JVA) with a Medical Marijuana Inc. (OTCMKTS:MJNA) and a Kraft Foods Group Inc. (NASDAQ:KRFT)? No, it's not a setup for a punch line - there's a legitimate answer. And that answer is, Latteno Food Corp. (OTCMKTS:LATF).

Top 5 Consumer Stocks To Buy Right Now: Nestle SA (NSRGY)

Nestle SA is a company engaged in the nutrition, health and wellness sectors. It is the holding company of the Nestle Group, which comprises subsidiaries, associated companies and joint ventures throughout the world. The Company has such business units as Food and Beverage, Nestle Waters and Nestle Nutrition. Nestle is also active in the pharmaceutical sector. It divides its products into nine categories: Prepared dishes and cooking aids, Beverages, Confectionery, Ice cream, Water, PetCare, Milk products, Nutrition and Pharma. It has numerous subsidiaries engaged in various areas of activity, including Alcon Ophthalmika GmbH (Austria), Alcon Bulgaria EOOD (Bulgaria) and Galderma Laboratorium GmbH (Germany) for pharmaceuticals; Novartis Nutrition GmbH (Austria) and Hjem-IS A/S (Denmark) for food and beverages, and Galderma International SAS (France) and Galderma Laboratorium GmbH (Germany) for health and beauty activities. The Company is headquartered in Vevey, Switzerland. In July 2008, Novartis AG acquired a 25% stake in Alcon, Inc. from Nestle SA. In March 2010, the Company acquired Kraft Foods Inc' frozen pizza business.

In April 2008, L'Oreal and Nestle SA's joint venture, Galderma Pharma S.A., announced that its United States holding company, Galderma Laboratories, Inc., had acquired approximately 97% interest in CollaGenex Pharmaceuticals, Inc. During the year ended December 31, 2004, Nestle had 500 factories in 83 countries around the world. In 2004, 15 factories were acquired or opened and 29 closed or divested.

Advisors' Opinion:

• [By Rich Duprey]

  Analysts at Rabobank concur. Where�Nestle (NASDAQOTH: NSRGY  ) owns half the single-serve brewer market (Green Mountain's Keurig and Vue has almost a quarter of the market share), it says coffee pods represent 14% of all at-home consumption.

• [By Holly LaFon]

  HL: And you��e held Nestle (NSRGY) for a long time.

  TR: I first bought Nestle in 1987, and it was at that time it was very difficult to buy, and it�� probably compounded at close to 15% every year since then, total return. And it�� partly because it was so unloved at the start that the returns have been so strong. But I��e held it for 30 years, and it�� grown in large measure because of that capacity to reinvest, and we have this beautiful portfolio of brands. And they have the capacity to suffer. So for example they had global leadership in coffee, in Nescafe. On top of that they identified the single-serve coffee business as very on-trend because of the increasing number of people who live alone and who also want to have choice and variety. So it�� no longer enough to brew a pot of Maxwell House for 10 people because you have a big family. You��e living alone you want to have variety, you want to have just enough so you don�� waste. Single serve plays a big role in that. And they were willing to invest so heavily behind the development of Nespresso that they didn�� break even for 15 years. So I admired them. They have great domain expertise in coffee. And they have the capacity to suffer, through 15 years of not breaking even, to perfect the product so that by the time it came out it was a true winner. And so with that careful background, today the business does close to $5 billion. And it�� a very solid important franchise. That culture, of being able to take your domain expertise and move from one product to the next and then invest behind it to try to get it right, without rushing to try to show early profits, is at the heart of what I��e learned from these businesses that do it right, as things required to have permanent excellence.