Top Consumer Staples Picks for 2010: TRLG, ICON, NWL, HANS, BARE

Consumer brands Bare Escentuals, True Religion Apparel, Newell Rubbermaid, Iconix Brand Group, and Hansen Natural Corporation are 2010's best investment prospects.

They may be the boring segment of the market in terms of industry, but the consumer staples stocks can frequently turn in far bigger gains than most investors imagine... which is very exciting. And, since a balanced portfolio requires their presence anyway, investors should consider adding Iconix Brand Group, Inc. (NASDAQ:ICON), Hansen Natural Corporation (NASDAQ:HANS), Bare Escentuals, Inc. (NASDAQ:BARE), True Religion Apparel, Inc. (NASDAQ:TRLG), and Newell Rubbermaid Inc. (NYSE:NWL) to their portfolio to satisfy the 'consumer brands' piece of the pie chart. Here's a closer look at why.

f you like strong margins, you'll love Bare Escentuals, Inc. (NASDAQ:BARE). The company cleared a net of 15.5% over the past year, which was near the top of the consumer staples pile. Moreover, Bare Escentuals' forecasted EPS growth of 7.9% next year may be too timid given that the company grew earnings by 11.0% this year. If 2010 is nothing more than a repeat of 2009, BARE may still be underestimated with its forward-looking P/E of 12.9.

Hansen Natural Corporation (NASDAQ:HANS) got rocked in the second quarter of this year - and deservedly so - when the stock fell from a high of $44 to a low of $28. The improvements since then though, on a technical as well as a fundamental basis, indicate a rebound is on the way. In the bigger picture, Hansen Natural Corporation may be the ultimate economic-recovery play; shares were at $68 in late 2007.

Slow and steady wins the race, which is just fine with Newell Rubbermaid Inc. (NYSE:NWL). NWL shares have quietly gained 222% since March's low, and the recent consolidation between $14 and $15 from September until now is on the verge of turning into the next leg of the long-term rally. 2009 results aren't much to look at, but decent EPS growth (+11%) and a forward-looking price multiple of around 10.2 packs in some decent value.

Slow and steady wins the race, which is just fine with Newell Rubbermaid Inc. (NYSE:NWL). NWL shares have quietly gained 222% since March's low, and the recent consolidation between $14 and $15 from September until now is on the verge of turning into the next leg of the long-term rally. 2009 results aren't much to look at, but decent EPS growth (+11%) and a forward-looking price multiple of around 10.2 packs in some decent value.

We actually went bullish on the obscure footwear group back on July 21st, includingIconix Brand Group, Inc. (NASDAQ:ICON). As it turns out, you would have scored big on every footwear stocks we suggested except for Iconix Brand Group. Figures. Nevertheless, after a drastic September pullback (maybe partially because of the pullback) we like ICON even more as we head into 2010. What's not to like?It's got a projected P/E of 9.9, and margins - - have been consistently and insanely high.

Yes, True Religion Apparel, Inc. (NASDAQ:TRLG) qualifies as a consumer staples name even with its fashion bent. More importantly, like Iconix Brands, True Religion Apparel's margins are almost too strong to be true... a net of 15.6%, and an operating margin of 25.2%. That's why the current and future P/E ratio is hovering around 10.0. The most attractive part about TRLG, however, is the chart. The stock took a major tumble in early November, but now appears to be in recovery mode after making a higher high (and close to making another one today).

We didn't include charts for all our consumer staples picks simply because the charts didn't mean as much for some as it did for others. Where it was the crux of the call though, it was added.

The underlying fundamentals matter for all five stocks though, so here's a performance snapshot and prediction for Bare Escentuals, True Religion Apparel, Newell Rubbermaid, Iconix Brand Group, and Hansen Natural Corporation.... our 2010 consumer brands picks.