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The best performing stocks in the market are usually the highest growing stocks or the stocks with the highest expected growth rates. This doesn’t mean that one should be invested in growth stocks and stay away from the value stocks at all times.

Historically value stocks managed to beat the growth stocks hand over fist. The reason is simple. Value stocks are beaten down stocks with very low or negative growth expectations. Not surprisingly it is easier for these stocks to beat the expectations on the average. On the other hand, everybody is extremely bullish about growth stocks and expect them to have higher growth rates in the future. Their stock prices also reflect this fact. Not surprisingly, it is more difficult for these stocks to beat these challenging expectations.

We ranked consumer companies based on their expected five-year growth rates. These stocks are at least $3 Billion in market cap. The data source is Yahoo Finance. Contrarian investors should look into the stocks that are at the top of the table.

Company name

Symbol

Forward PE

Expected 5-Year Growth Rate

Stanley Black & Decker, Inc.

SWK

8.78

2.88

Magna International Inc.

MGA

7.39

9.60

NIKE, Inc.

NKE

15.38

10.05

Genuine Parts Company

GPC

13.68

10.13

Whirlpool Corporation

WHR

6.48

10.62

Lear Corporation

LEA

7.91

10.69

PVH Corp

PVH

10.52

10.73

Ralph Lauren Corp

RL

18.11

11.32

V.F. Corporation

VFC

13.98

11.46

Mattel, Inc.

MAT

11.29

11.76

Polaris Industries Inc.

PII

12.86

11.80

W.W. Grainger, Inc.

GWW

15.21

12.17

Hasbro, Inc.

HAS

9.55

13.26

Johnson Controls, Inc.

JCI

9.18

13.70

Williams-Sonoma, Inc.

WSM

12.52

13.91

Gildan Activewear Inc.

GIL

11.31

13.96

Harley-Davidson, Inc.

HOG

11.2

14.74

Gentex Corporation

GNTX

18.43

17.06

PACCAR Inc

PCAR

10.67

18.72

John W. Rogers held about 124 million in SWK. George Soros and Bill Miller both held more than $30 million position in SWK. Jim Simons increased his holding of COP by 3-fold during the second quarter. D.E Shaw initiated a brand new $0.7 million SWK position.

There are other consumer companies trading at lower prices because of low expected growth rates: MGA and NKE. One of the stocks hedge funds are extremely bullish about is MGA. Jim Simons held $12 million in MGA. George Soros increased his holdings in MGA shares during the second quarter.

Another stock that hedge funds heavily invested during the past few months is NKE. Jim Simons increased his holdings in NKE by 7-fold. D.E Shaw, Ken Griffin and Israel Englander held over $40 million in NKE and are among the hedge fund managers who are extremely bullish about NKE.

WHR is also a promising stock. John Paulson had $203 million in WHR shares. Louis Bacon also initiated $0.6 million in WHR. Steven Cohen and Ken Griffin also had WHR positions.

Usually stocks with higher expected growth rates trade at much higher multiples. Some of the stocks with higher expected growth rates in our list have very attractive multiples. PCAR, HOG, GIL, JCI and HAS deserve a closer look. Insiders are getting bullish about some of these stocks as well.

We like consumer stocks and believe that they are indeed trading at attractive multiples. However, if global economy significantly slows down or slips into recession these stocks will definitely get cheaper and that will be a better time to buy these stocks.

Source: Top Consumer Companies With The Highest Upside Potential