These 5 Large Cap Consumer Stocks Are Set For Growth

Includes: DEO, GM, HMC, HOG, IP
by: ZetaKap

Do you prefer investing in the large cap stocks that still have room for growth? Are you interested in gaining exposure to consumer companies with products you know and recognize? If so, here is a list you might be interested in.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for large cap consumer stocks. We then looked for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3).

Do you think these large-cap stocks will go up in valuation? Please use our list to assist with your own analysis.

1) Harley-Davidson, Inc. (NYSE:HOG)

Sector: Consumer Goods
Industry: Recreational Vehicles
Market Cap: $11.27B
Beta: 2.19
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Harley-Davidson, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 27.40%, and a Analysts' Rating of 1.80. The short interest was 3.47% as of 06/10/2012. Harley-Davidson, Inc. engages in the production and sale of heavyweight motorcycles. It operates in two segments, Motorcycles and Related Products, and Financial Services. The Motorcycles and Related Products segment designs, manufactures, and sells cruiser and touring motorcycles for the heavyweight market.

2) Honda Motor Co., Ltd. (NYSE:HMC)

Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Market Cap: $57.28B
Beta: 0.84
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Honda Motor Co., Ltd. has a 1-Year Projected Earnings Per Share Growth Rate of 144.22%, and a Analysts' Rating of 1.50. The short interest was 0.02% as of 06/10/2012. Honda Motor Co., Ltd., together with its subsidiaries, engages in the development, manufacture, and distribution of motorcycles, automobiles, and power products primarily in North America, Europe, and Asia. Its motorcycle line consists of business and commuter models, as well as sports models, including trial and moto-cross racing; allterrain vehicles; personal watercrafts; and multi utility vehicles. The company also produces various automobile products, including passenger cars, minivans, multi-wagons, sport utility vehicles, and mini cars; and power products comprising tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors, home-use cogeneration units, and thin film solar cells for home, public, and industrial uses.

3) International Paper Co. (NYSE:IP)

Sector: Consumer Goods
Industry: Paper & Paper Products
Market Cap: $12.80B
Beta: 2.22
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International Paper Co. has a 1-Year Projected Earnings Per Share Growth Rate of 30.45%, and a Analysts' Rating of 1.90. The short interest was 2.07% as of 06/10/2012. International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and north Africa. The company's Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Its Printing Papers segment produces printing and writing papers, such as uncoated and coated papers used in copiers, desktop and laser printers, and digital imaging; market pulp for use in the manufacture of printing, writing, and specialty papers, as well as towel and tissue products, and filtration products; and uncoated bristols. The company's Consumer Packaging segment offers coated paperboard for various packaging and commercial printing end uses, such as food, cosmetics, pharmaceuticals, computer software, tobacco products, greeting cards, paperback book covers, lottery tickets, direct mail, and point-of-purchase advertising.

4) General Motors Company (NYSE:GM)

Sector: Consumer Goods
Industry: Auto Manufacturers - Major
Market Cap: $34.53B
Beta: -
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General Motors Company has a 1-Year Projected Earnings Per Share Growth Rate of 25.41%, and a Analysts' Rating of 1.90. The short interest was 7.36% as of 06/10/2012. General Motors Company designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Daewoo, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It also sells cars and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.

5) Diageo plc (NYSE:DEO)

Sector: Consumer Goods
Industry: Beverages - Wineries & Distillers
Market Cap: $61.78B
Beta: 0.77
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Diageo plc has a 1-Year Projected Earnings Per Share Growth Rate of 25.57%, and a Analysts' Rating of 2.50. The short interest was 0.11% as of 06/10/2012. Diageo plc engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and wine products worldwide. It offers a range of brands, including Johnnie Walker scotch whiskies, Smirnoff vodka and Smirnoff ready to drink products, Baileys Original Irish Cream liqueur, Crown Royal Canadian whisky, Captain Morgan rum and rum based products, Jose Cuervo tequila, JeB scotch whisky, Buchanan's scotch whisky, Windsor Premier scotch whisky, Ketel One vodka, Ciroc vodka, Tanqueray gin, Bushmills Irish whiskey, and Guinness stout. The company also provides other spirits brands that comprise Gordon's gin and vodka, Old Parr scotch whisky, Bell's scotch whisky, The Classic Malts scotch whiskies, Seagram's 7 Crown whiskey and Seagram's VO whisky, Cacique rum, White Horse scotch whisky, Don Julio tequila, and Bundaberg rum.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.