3 Top PowerRatings Food Stocks for Investors: K, CAG, GIS

Whether or not the markets are merely setting up for a test of the year-to-date lows - or are actually planning to plunge through them - investors know that some stocks have historically outperformed others in times of financial uncertainty. And it is from among these stocks that we encourage investors to choose when looking for stocks that are likely to outperform the average stock in a year's time.

The stocks I'm referring to are the so-called "recession beater" stocks. These stocks come from a variety of industry groups - from utilities to personal products to drug manufacturers. But what they all have in common is that recession beater stocks tend to provide goods or services that will remain in demand regardless of whether the economy is growing, in recession or somewhere in between.

To these industry groups we can add the Processed and Packaged Goods industry group, home of a number of well-known, prepared foods companies. Companies working in this industry are not the most glamorous stocks in the stock universe. But because investors can count on them to produce steady revenues and often healthy dividends, stocks from this group tend to be among those most sought after when investors become less concerned about making money and more concerned about keeping the money they have already made.

Kellogg (K@K | Quote | Chart | News | PowerRating) is among the best known stocks in this group, and features a Long Term PowerRating of 8. Kellogg's products include such familiar names as Special K, Nutri-Grain, and Frosted Flakes - among many others.

Kellogg has been trading below its 200-day moving average since late April, oscillating in a relatively wide band between $50 and $52. Throughout this time, the stock has maintained a Long Term PowerRating of 8.

Next up is ConAgra (CAG@CAG | Quote | Chart | News | PowerRating). And although not quite as well known as Kellogg, a number of ConAgra's products are as commonly found on kitchen shelves and cupboards as those of any other processed food company. Consider La Choy, Libby's, Hebrew National and Chef Boyardee - to name just a few.

Shares of ConAgra are only recently part of the high Long Term PowerRatings club - having earned their 8-rating in the first few days of June after spending the past several weeks with a Long Term PowerRating of 7.

Our last food stock for investors today is General Mills (GIS@GIS | Quote | Chart | News | PowerRating). Like Kellogg, General Mills had a Long Term PowerRatings downgrade in late April from 9 to 8. General Mills has

General Mills has been trading in a range between $61 and $64 since late April, during which time the stock's Long Term PowerRating has slipped from a 9 at the beginning of May to its current level of 8. Unlike both Kellogg and ConAgra, shares of General Mills are clearly trading above their 200-day moving average.

Note that all three stocks in today's report have Long Term PowerRatings of 8. Our research, involving thousands and thousands of simulated stock trades between 1995 and 2007, indicates that stocks with Long Term PowerRatings of 8 have been higher one year later more than 74% of the time. Compare that to the average stock, which has been higher one year later less than 68% of the time.

Looking for more long-term solutions to your investing problems? Don't let the volatility of this market lead you to miss out on stocks you'll be glad to have bought a year from now.

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

David Penn is Senior Editor of PowerRatings.net.