Consumer Stocks Poised to Rise as Economy Improves: The Clorox Company (CLX), Dean Foods Co (DF), Diamond Foods, Inc. (DMND)

Revenues also jumped nearly 4 percent to $3.04 billion in the fourth quarter of 2012. After dropping considerably after issuing poor guidance, shares of the dairy products company are on a comeback trial. The company (and possibly the stock) will be a natural beneficiary of the US economy gaining traction.

Meanwhile, The Clorox Company (NYSE:CLX) which makes household consumer products, continues to dazzle the markets with its stellar performance. In what can be described as an upward slanting trendline, the stock has gained 8 percent over the last month.

It is also one of the few consistent performers and just repeated the feat with an 8.5 percent growth in quarterly revenues to $1.32 billion and a 17 percent jump in net income to $123 million in the latest quarter. Being one of the largest players in its operating segment will likely help the company in extracting the best from the improving economic picture.

Overall, the next few months could very well be net positive for consumer stocks even as the federal spending cuts may bring about some weaking in the wider economic recovery. The fact that these businesses are largely driven by the underlying strength and are lagging indicators of any economy’s wellbeing is likely to fuel the rally in the coming quarters. If the economy takes a hit in coming quarters, it could take some time before the impact is felt by the companies or their shareholders.

The article Consumer Stocks Poised to Rise as Economy Improves originally appeared on Fool.com and is written by Jacob Wolinsky.

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