This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"To paraphrase its marketing slogan: 'Nobody shouldn't like Sara Lee (NYSE: SLE),'" says Steve Ralston, consumer products sector expert at Zacks Investment Research.
"From the sales of staple products, consumer non-durable companies generate solid cash flow, with which management can enhance shareholder value through share repurchases and dividend increases.
"Recently restructured consumer non-durable companies are especially attractive, particularly if they are well-managed, trade at a single-digit P/E, and yield more than 4%.
"My favorite stock for 2009 is Sara Lee. Sara Lee announced a 5-year restructuring plan (the Transformation Plan) 3-1/2 years ago. The company has been right-sized, having divested unprofitable and low margin businesses.
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