The unofficial closing bells put the DJIA up nearly 336 points to 12,101.92 (2.85%), the NASDAQ rose more than 80 points (3.19%) to 2,603.73, and the S&P 500 rose 2.98% or nearly 36 points to 1,241.22.

There were several analyst upgrades and downgrades today, including AT&T Inc. (NYSE: T) cut to ‘neutral’ at JPMorgan. Other ratings actions today include F5 Networks Inc. (NASDAQ: FFIV) cut from ‘perform’ to ‘underperform’ at Oppenheimer; Urban Outfitters Inc. (NASDAQ: URBN) raised from ‘outperform’ to ‘Top Pick’ at FBR Capital; Amgen Inc. (NASDAQ: AMGN) added to ‘Strong Buy List’ at Zacks; and Baxter International Inc. (NYSE: BAX) lowered from ‘Top Pick List’ to ‘outperform’ and target price lowered from $61 to $58 at RBC Capital Markets.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: ConAgra Foods Inc. (NYSE: CAG) is up 4% at $26.18; General Mills Inc. is down about -1% at $39.19; Navistar International Corp. (NYSE: NAV) is up nearly 7% at $39.05; Sanderson Farms Inc. (NASDAQ: SAFM) is down -4% at $48.66; and Jefferies Group Inc. (NYSE: JEF) is up more than 22% at $14.46. After markets close today we get earnings from Nike Inc. (NYSE: NKE) and Oracle Corp. (NASDAQ: ORCL). See our 360 coverage on Oracle here and coverage of the ConAgra and General Mills reports here.

Other standouts from today include the following stocks:

Targacept Inc. (NASDAQ: TRGT) is down more than -35% at $5.01, after posting a new 52-week low of $4.92 earlier in the day. The pharmaceutical maker’s anti-depressant drug, developed in conjunction with AstraZeneca plc (NYSE: AZN) has failed a late-stage trial.

Cobalt International Energy Inc. (NYSE: CIE) is up nearly 38% at $13.81. The oil & gas exploration company has signed a production-sharing agreement for a block offshore of Angola. Cobalt owns 40% of the project and is the operator.

Canadian Solar Inc. (NASDAQ: CSIQ) is up nearly 33% at $2.93. The solar panel maker has sold about 86 megawatts of generation to TransCanada Corp. (NYSE: TRP) for approximately $455 million.

Prestige Brand Holdings Inc. (NYSE: PBH) is up nearly 21% at $11.27. The drug and cleaning supplies company paid $660 million for a selection of nonprescription drugs from GlaxoSmithKline PLC (NYSE: GSK).

Hovnanian Enterprises Inc. (NYSE: HOV) is up more than 18% at $1.50. The home builder is riding the wave of good news about new housing starts.

CVS Caremark Corp. (NYSE: CVS) is up about 9% at $39.85, after posting a new 52-week high earlier of $39.86. The healthcare company raised fiscal year guidance and boosted its quarterly dividend by 30%, to $0.1625/share.

Stay tuned for Wednesday. The most widely anticipated report for tomorrow is due at 8:30 a.m. from the National Association of Realtors, which will be revising its new home sales data from 2007 forward. Lower sales of up to -13% are expected. Here are other noteworthy events on the schedule (all times Eastern):

• 7:00 a.m. – Mortgage Bankers Association purchase applications
• 10:30 a.m. – EIA weekly petroleum status report
• 1:00 p.m. – 7-year Treasury note auction

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Paul Ausick

ConAgra reported reported adjusted EPS of $0.47, compared with a consensus estimate of $0.43. Revenue came in at $3.4 billion, compared with an estimate of $3.34 billion. In the same period a year ago, ConAgra posted EPS of $0.46 on $3.15 billion in revenue.

General Mills reported adjusted EPS of $0.76, below estimates of $0.79. Revenue beat expectations of $4.6 billion, coming in at $4.62 billion. A year ago, General Mills posted adjusted EPS of $0.92 on revenue of $4.1 billion.

ConAgra expects EPS growth in the low- to mid-single digit range for the 2012 fiscal year. The current consensus EPS estimate is $1.80 for the full year ending in May, compared with EPS of $1.75 last year. ConAgra, which failed in a hostile takeover attempt on Ralcorp Holdings Inc. (NYSE: RAH), has been making small acquisitions to boost its revenues.

General Mills forecasts full-year EPS of $2.59-$2.61, while the consensus estimate is $2.61, up from $2.48 last year. The company is looking to its recently acquired controlling stake in yogurt maker Yoplait to help boost earnings.

In the early afternoon today, ConAgra shares are up more than 3.5% at $26.10, after posting a new 52-week high this earlier of $26.38. Trading volume is heavy, with 4.8 million already having trading hands today, compared with a daily average of 4 million.

General Mills shares are down about -1.5% at $39.00 in a 52-week range of $34.54-$40.72. Volume is also heavy in the shares, with more than 5 million traded so far today compared with a daily average of about 4.6 million.

Paul Ausick

Large farm products companies like Archer Daniels Midland Co. (NYSE: ADM) and Bunge Ltd. (NYSE: BG) have watch corn and wheat prices decline by about -20% and -29% since peaks earlier this year. Fertilizer prices have risen and so have fuel prices. All have an impact on revenues and earnings.

Processing companies like Tyson Foods Inc. (NYSE: TSN), Smithfield Foods, Inc. (NYSE: SFD), Corn Products International Inc. (NYSE: CPO), and ConAgra Foods, Inc. (NYSE: CAG) package private label foods, provide commercial food, and even offer some branded products. The diversity of their customers gives them a bit of a barrier against a collapse in one or another of their markets.

Packaged food giants like Kraft Inc. (NYSE: KFT), Sara Lee Corp. (NYSE: SLE), General Mills, Inc. (NYSE: GIS), and Kellogg Company (NYSE: K) are all household names and depend on strong brands to carry them through slow economic times.

Data from Yahoo! Finance, and current share prices gathered about noon today.

Archer Daniels Midland Co. (NYSE: ADM) has a median target price of $35.00 from 13 brokers. Shares are trading today at $28.88, for an implied gain of $6.12, or 21%. ADM’s forward P/E is 8.52 and the company pays a dividend yield of 2.3%. The stock’s 52-week trading range is $23.69-$38.02, and at today’s price that’s about 22% above its 52-week low and 24% below the 52-week high. This year’s wheat harvest looks to be on a near-record pace, and wheat prices are expected to fall to below $6/bushel by the end of the year from a current price of around $6.36.

Rising corn prices hit ADM hard in its most recent quarter, lowering profit in its biofuel (ethanol) division by -23% and in its sweetener and starches division by -81%. Corn prices are currently expected to remain about the same into next year, which won’t help ADM’s processing revenue. Fortunately for the company its trading profits will get a boost from the higher corn prices.

Bunge Ltd. (NYSE: BG) has a median target price of $74.00 from 11 brokers. Shares are trading today at $61.38, for an implied gain of $12.62, or 21%. Bunge’s forward P/E is 9.32 and the company pays a dividend yield of 1.6%. The stock’s 52-week trading range is $54.03-$76.13, and at today’s price that’s about 14% above its 52-week low and 19% below the 52-week high.

Bunge missed EPS estimates badly in its third quarter as the company ran afoul of volatility in the grain markets. The company painted a brighter picture for its fourth quarter, basing its view on the tightness of supply and the rising demand for food.

Tyson Foods Inc. (NYSE: TSN) has a median target price of $23.00 from 15 brokers. Shares are trading today at $19.27, for an implied gain of $3.73, or 19%. Tyson’s forward P/E is 9.53 and the company pays a dividend yield of 0.8%. The stock’s 52-week trading range is $14.79-$20.12, and at today’s price that’s about 30% above its 52-week low and 4% below the 52-week high.

Tyson will report earnings for its fourth fiscal quarter on November 21st. The consensus EPS estimate is $0.32, half as much as the same period a year ago. Rising feed costs have hammered revenues and earnings this year, and Tyson and other chicken producers are trying to get its customers to share commodity price risk by taking shorter term contracts tied to the cost of feed grains.

AMR Corp. (NYSE: AMR) has received a rating of ‘A-’ on its series 2011-2 class A pass-through certificates that are expected to mature on October 15, 2021. The company plans to issue $726 million of equipment notes secured by 43 aircraft to refinance airplanes already owned by AMR.

According to S&P, the pass-through certificates are protected under US bankruptcy law and liquidity facilities through Morgan Stanley Bank. The liquidity facilities are intended to pay up to three semi-annual interest payments and re-marketed by certificate holders following any default by AMR. The liquidity facilities also maintain continuity of interest payments when/if AMR enters negotiations with certificate holders in a bankruptcy proceeding.

The certificates were registered under a shelf registration in September and will be purchased by a newly formed trust as each aircraft is purchased. The notes carry an interest rate of 8.625%.

S&P referred to yesterday’s reports of AMR’s possible bankruptcy and said that the agency believes that AMR’s current liquidity combined with the sale of the certificates was “still adequate.” However, if the company’s cash and short term investments fall below $3 billion, S&P said it “could lower our ratings.”

General Motors Co. (NYSE: GM) received an upgraded issuer default rating from ‘BB-’ to ‘BB’ at Fitch Ratings. The company’s rating outlook was also upgraded from ‘Stable’ to ‘Positive’. The ratings also apply to GM Holdings LLC, and GM Financial Co., Inc., both subsidiaries of GM. Fitch noted, among other things contributing to the upgrade, that the new contract with the United Auto Workers “appears to provide the company with sufficient financial and operational flexibility to allow a continuation of the positive progress it has made since emerging from bankruptcy in 2009.”

Level 3 Communications Inc. (NASDAQ: LVLT) received an upgrade to its corporate family and probability of default ratings from ‘Caa1′ to ‘B3′ from Moody’s. The agency said that the now-closed transaction with Global Crossing Ltd. should allow the company to become “modestly cash flow positive on a sustained basis with two years.” The new rating was also applied to a new $650 million senior secured term loan at Level 3′s financing subsidiary and the company’s assumption of senior unsecured debt originally issued to another Level 3 subsidiary.

ConAgra Foods Inc. (NYSE: CAG) received a preliminary ‘BBB’/'BBB-’ rating from S&P on a shelf registration of senior unsecured/subordinated debt that does not include a total offering amount or a number of debt securities. The company’s corporate rating is ‘BBB’ with a stable outlook.

Thomson Reuters Inc. (NYSE: TRI) received a ‘A-’ rating from S&P on $350 million in senior unsecured notes due 2021. The company plans to use the proceeds to repay borrowing from it commercial paper program. Thomson Reuters carries a corporate credit rating ‘A-’ with a ‘Stable’ outlook.

Paul Ausick

Anheuser-Busch Inbev SA (NYSE: BUD) is up 0.25% at $52.84 and the 52-week range is $49.05 to $64.77.

Altria Group, Inc. (NYSE: MO) is FLAT at $26.81 and the 52-week range is $23.20 to $28.13; Reynolds American Inc, (NYSE: RAI) is up 0.3% at $37.60 and the 52-week range is $29.05 to $39.87.

Campbell Soup Company (NYSE: CPB) is up 0.7% at $32.59; 52-week range is $29.69 to $36.99.  ConAgra Foods, Inc. (NYSE: CAG) is down “only” 0.4% at $24.12; 52-week range is $21.02 to $26.60.

Kimberly-Clark Corporation (NYSE: KMB) is up $0.03 at $71.04; 52-week range is $61.00 to $71.78.  Procter & Gamble Company (NYSE: PG) is up $0.05 at $63.23; 52-week range is $57.56 to $67.72.

Sometimes a little win or a small loss feels like a big victory.  With just under an hour until the market close, the DJIA is down almost 200 points at 10,720 and the closest handle on the S&P 500 down almost 2.1% is 1,108.  Another day, another bunch of lost dollars for the public.

JON C. OGG

The maker of Chef Boyardee, Healthy Choice, PAM no-stick cooking spray and other food products, has made several unsuccessful bids for Ralcorp since March, culminating in a recent $94.00 per share offer in cash. St. Louis-based Ralcorp has repeatedly spurned the offers, opining it could best unlock shareholder value by spinning off its Post Foods division, which includes brands Honey Bunches of Oats, Grape Nuts and Fruity Pebbles, from its private label (store brand) and ready-to-eat foodstuffs (like cereals, cookies and pasta).

Golden Parachutes for Key Executives

Considering the purchase price was higher than Ralcorp has ever traded at, it is hard to fathom why senior management failed to endorse ConAgra’s offer, especially given the personal payday that awaited each of them under “change-in-control” clauses contained in their respective employee agreements. In a buyout, co-chief executives Kevin Hunt and David Skarie each stood to pocket, at a minimum, $15 million (including $3.7 million in accrued salaries and cash bonuses, and in excess of $6 million in stock awards). Chief financial officer Thomas Granneman left more than $5 million on the table, too (including $3 million in three-years worth of salary and average annual cash bonuses, and more than $2 million in stock awards). Furthermore, actual payouts to named executives would have been significantly higher, as these severance packages were based on the closing price of Ralcorp on September 30, 2010 ($58.48 a share), according to the 2011 proxy statement.

Post Brand Cereals Were the Future — Back in 2008

That management and the board of directors now believe that a spin-off of Post brands is the better option to boost value for its shareholders — as opposed to an acquisition by ConAgra — is odd, considering the same guys were the cheerleaders behind the $2.6 billion purchase of the same ready-to-eat brands from Kraft Foods (NYSE:KFT) in 2008.

“A transforming event for Ralcorp — the addition of Post cereals gives Ralcorp a truly distinctive line of branded cereal products plus a branded infrastructure and platform that we can build on through organic growth and acquisitions,” David P. Skarie said in November 2007.

For the nine-months ended June 30, segment profit for Post brands contributed 33.3%, or $160.6 million, of $481 million in total segment profits. By comparison, Ralcorp derived just $64.4 million, or 13.3% of income from the manufacturing of third-party cereals. In addition, branded profit margins of 22% almost doubled those of its private-label operations.

Though Post-branded cereals remain the profit cow for the company, the Kraft purchase did not exactly shake up the cereal category or propel Ralcorp above also-ran status. The brand remains mired in third place and, looking ahead, management is acutely aware that growing margins will be difficult, given competitive obstacles, the incessant promotional and bidding wars with industry leaders Kellogg (NYSE: K) and General Mills (NYSE: GIS) for slotting space on the shelves of supermarket chains and discount retailers such as Walmart (NYSE:WMT).

Management has admitted, too, on recent quarterly conference calls that operating efficiency gains will unlikely be significant enough to offset the adverse effect of $200 million in cost inflation, from increases in packaging and freight to primary ingredients (such as durum wheat, cashews and peanuts).

Ralcorp is the nation’s largest supplier of private label cereal, including copycats of more than 30 of the top national brands and (20 hot cereals). Ergo, looking ahead, management believes manufacturing higher unit volumes of store brand products could better insulate forward profitability from the aforementioned competitive headwinds.

Some on Wall St., disagree with Ralcorp’s internal optimism. Morningstar analyst Erin Lash argues that spinning off Post would prove to be a “value-destroying investment for Ralcorp’s shareholders,” as Post trails rivals Kellogg and General Mills in the “highly-competitive’’ cereal category.

It is unlikely that a Post spin-off would improve Ralcorp’s financial flexibility. On June 30, trailing twelve-month total debt stood at 3.2 times operating EBITDA and more than 70% of total assets on the balance sheet was fluff: some $4.8 billion of goodwill and other intangibles.

According to regulatory filings, as part of the split, Post is expected to generate approximately $1 billion in net cash for the company. However, $545 million of these proceeds will go towards the company’s August 2011 purchase of Sara Lee’s (NYSE: SLE) refrigerated dough business, leaving little left over to make a dent in the $2.4 billion in long-term debt.

In addition, the 10Q Detective notes that post-split, private-label Ralcorp will lose the cash flow contribution from the higher-margin branded cereal business!

Break-Up Value?

Ralcorp appears fairly valued based on sector comparisons: 18.6 times trailing twelve-month (TTM) price-earnings, which is 16.2% and 28.7% higher than the TTM of Kellogg and General Mills, respectively.

Wall St. itself is divided on much additional market value a Post cereal spin-off would generate longer-term to existing shareholders, with post-split capitalizations ranging from the mid $70-range up to $90 a share. BB&T Capital Markets analyst Heather Jones estimates the private label part of Ralcorp could fetch an estimated 9 to 9.5 times EBITDA, and Post about 8 times, suggesting a total post-split value of $85 to $90 a share — lower still than ConAgra’s $94 per share (all cash) offer!

“Cuckoo” — but Not for Cocoa Pebbles

Even with a mouthful of cereal and milk, the audible sounds of fiduciary irresponsibility by the board cannot be muffled. One is left to ask, did the board fear losing more than complimentary boxes of Cocoa Pebbles in a ConAgra takeover — such as the cushy $200,000 (+) annual stipend for showing up eight to 13 times a year for board meetings?

While frustrated Ralcorp shareholders are left pondering what possessed the board to ignore ConAgra’s more-than generous merger bid, they might also want to question management on the following potential conflict, too: How come this “independent board” still sits three members with common ties to Energizer Holdings (NYSE: ENR), including William P. Stiritz, who chairs Ralcorp’s board, and J. Patrick Mulcahy, Energizer’s current chairman? It has been 17 and 11 years, respectively, since the food and battery companies were sent packing from the Ralston Purina (NYSE: RAL) family.

Since when does selling batteries make one an expert on food goods? Unfortunately, it is unlikely the Energizer bunny can do much to keep Ralcorp’s stock price “going and going.”

David Phillips

Other rating actions were announced for General Motors Co. (NYSE: GM), Liberty Media LLC, Lubrizol Corp., now wholly-owned by Berkshire-Hathaway Inc. (NYSE: BRK-A; BRK-B), ConAgra Foods Inc. (NYSE: CAG), Orbitz Worldwide Inc. (NYSE: OWW), Web.com Group Inc. (NASDAQ: WWWW), and Cummins Inc. (NYSE: CMI)

General Motors Co. (NYSE: GM) is having its ‘Ba2′ corporate family rating and its ‘Baa3′ secured credit facility ratings reviewed for possible upgrade at Moody’s. The company’s new union contract and its improved operating and financial performance are the drivers of the review. Global economic uncertainty and the cyclic nature of the automaking business are the agency’s biggest concern. Also today, S&P assigned ‘AAA’ ratings to $500 million in asset-backed notes for Ally Bank. The funds are primarily intended to finance purchases of new cars from GM and Chrysler.

Liberty Media LLC and its Liberty Starz Group (NASDAQ: LSTZA; LSTZB) and Liberty Capital Group (NASDAQ: LCAPA; LCAPB) have received a ratings downgrade from Moody’s on senior unsecured bonds from ‘B1′ to ‘B3′ and the probability of default rating was downgraded from ‘Ba3′ to ‘B1′. The downgrades follow a court ruling that allows Liberty Media to split-off certain assets. The agency noted that 18% of Liberty Media’s revenues and 37% its enterprise value are being removed, which “disproportionately and negatively affect Liberty Media’s bondholders.”

Berkshire Hathaway Inc. (NYSE: BRK-A; BRK-B) subsidiary Lubrizol Corp. received a ratings upgrade from Moody’s following its acquistion by Warren Buffett’s company. The agency raised Lubrizol’s debt ratings from ‘Baa1′ to ‘Aa2′ with a stable outlook. There’s no substitute for having access to really deep pockets, or as Moody’s says, Berkshire-Hathaway “now guarantees Lubrizol’s public debt.”

ConAgra Foods Inc. (NYSE: CAG) has had its ‘BBB’ corporate credit and its ‘A-2′ short-term and commercial paper rating, among others, re-affirmed by S&P following ConAgra’s decision to give up its attempts to acquire Ralcorp Holdings Inc. (NYSE: RAH). All the company’s ratings have been removed from CreditWatch and the ratings outlook has been declared stable.

Orbitz Worldwide Inc. (NYSE: OWW) has had its ‘B’ corporate credit rating put on CreditWatch with negative implications by S&P. The agency downgraded debt for Travelport Holdings Ltd. yesterday, which together with The Blackstone Group (NYSE: BX) owns 55% of Orbitz.

Web.com Group Inc. (NASDAQ: WWWW) received a preliminary rating of ‘B’ with a stable outlook from S&P on its corporate credit.

Cummins Inc. (NYSE: CMI) received a corporate credit upgrade from ‘BBB+’ to ‘A’ from S&P. Cummins is an engine and parts maker and has been performing above expectations for the past three quarters. Analysts have raised EPS estimates for the current quarter by 10%.

Paul Ausick

ConAgra’s offer for Ralcorp, maker of Post cereals, came in at about $94/share in cash, a level Ralcorp stock had not reached in its entire history. Ralcorp, though has a plan to spin-off the Post cereal business as a separate company, and has been bulking up the other part of its business by making acquisitions of its own.

Ralcorp’s stock dipped below $74/share yesterday before closing at $75.23. The company’s 52-week high is $91.35.

The packaged food business has not exactly been on fire lately. Kraft Foods Inc. (NYSE: KFT) shares are up about 10% since the January, while General Mills Inc. (NYSE: GIS), H.J. Heinz Co. (NYSE: HNZ) and ConAgra are up about half that. Sara Lee Corp. (NYSE: SLE) shares are down slightly since January, as the company pieces itself off. Ralcorp purchased one of Sara Lee’s products earlier this year for $545 million.

Packaged food processors face rising energy costs and wary consumers for their branded products. Many customers are now satisfied to buy private-label products, and not pay the premium for Peter Pan peanut butter. Profits get hit by rising costs which force producers to raise prices which then have to be passed on to consumers. The attraction of Ralcorp for ConAgra was its substantial private-label business, which is more profitable than the branded business, particularly as consumers are looking for ways to save money.

Once Ralcorp spins-off its Post cereal brands, ConAgra or another buyer is likely to return for another go at acquiring Ralcorp. At least that’s what the company’s board is banking on. If a bidding war doesn’t materialize, shareholders could get a bit fiesty over the rejection of ConAgra’s bid.

ConAgra’s shares are down about -2.25% in the pre-market this morning. The stock’s 52-week range is $21.02-$26.60. Ralcorp shares are also down in the pre-market, at $74.74, in a 52-week range of $57.10-$91.35.

Paul Ausick

We have broken these out by day and included consensus earnings and revenue estimates from Thomson Reuters.  We have also added in a price and recent trading activity and even added in the consensus analyst price targets.  Many of these also have some added color for traders to consider about the earnings reports.

Monday

Lennar Corporation (NYSE: LEN) has estimates of $0.10 EPS and $810.2 million in revenues; next quarter estimates are $0.19 EPS and $908.35 million in revenues.  Shares are trading around $13.90, the 52-week trading range is $12.39 to $21.54.  Wait a minute… EARNINGS rather than losses?  Go figure.

Tuesday

Adobe Systems Inc. (NASDAQ: ADBE) has estimates of $0.54 EPS and $1.03 billion in revenues; next quarter estimates are $0.59 EPS and $1.07 billion in revenues.  Shares are trading around $25.50, the 52-week trading range is $22.67 to $35.99.  Analysts still have a consensus target above $34.00, which seems a bit optimistic in the new normal where Apple’s mobility service is still crimping Flash.

Carnival Corporation (NYSE: CCL) will show the cruise industry who is boss, maybe.  The estimates are $1.63 EPS and $4.91 billion in revenues; next quarter estimates are $0.36 EPS and $3.89 billion in revenues.  Shares are trading around $33.50, the 52-week trading range is $28.96 to $48.14.  Keep in mind that this report is the King-Maker quarter that dictates the earnings for the full year due to the summer travel months.  With an estimate of $1.63 EPS for the quarter, the full year is expected to be $2.46 EPS.  Analysts have a consensus target of $almost $44.75.

ConAgra Foods Inc. (NYSE: CAG) has estimates of $0.31 EPS and $2.96 billion in revenues; next quarter estimates are $0.46 EPS and $3.3 billion in revenues.  Shares are trading around $24.00, the 52-week trading range is $21.02 to $26.60, and the consensus analyst target is $28.13.

Jefferies Group Inc. (NYSE: JEF) has estimates of $0.26 EPS and $665.6 million in revenues; next quarter estimates are $0.36 EPS and $746.1 million in revenues.  Shares are trading around $14.65, the 52-week trading range is $13.85 to $27.12, and the consensus target is $22.22.  Jefferies has not been immune from the market’s pounding of banks and brokerage firms, but this is one broker and i-banker expected to grow.

We have been searching for deep value stocks of late now that the market sell-off has taken out a large bite from the value of many major companies.  Some analysts group food differently than beverages, but our screen includes all of the following to identify the best value: Campbell Soup Co. (NYSE: CPB); The Coca-Cola Company (NYSE: KO); ConAgra Foods, Inc. (NYSE: CAG); Dr. Pepper Snapple Group, Inc. (NYSE: DPS); General Mills, Inc. (NYSE: GIS); Hormel Foods Corporation (NYSE: HRL); Kellogg Company (NYSE: K); Kraft Foods Inc. (NYSE: KFT); Pepsico, Inc. (NYSE: PEP); Tyson Foods, Inc. (NYSE: TSN); and Smithfield Foods Inc. (NYSE: SFD).

We are looking at food and beverages separately today in identifying the best value for investors looking for safe havens in the storm.  This sector is already very defensive in nature, and we found that the defensive sector of consumer products actually has a market premium due to investors seeking safety.  The good news is that the food and beverage sector has a few differences.

Campbell Soup Co. (NYSE: CPB) recently traded at $30.85 and its market cap is $10 billion.  The stock’s 52-week trading range is $29.69 to $36.99.  The current value is trading at a price-to-book ratio of about 9 to 1.  Its forward price earnings multiple is 12.2 and its return on equity is 78.8%.  The canned soup company currently pays a dividend yield of about 3.8% to investors.  Thomson Reuters has a consensus price target of $34.00, implying roughly 10.2% upside to the most recent price.  Campbell is under a new CEO and undergoing some change.  It is hard to imagine that this is a luxury good or a health food group stock, but the company has been under fire from private-label soups in the past and it is now going to add more salt and flavors to regain some market share.  Due to the correction, there is almost a turnaround element here.

The Coca-Cola Company (NYSE: KO) recently traded at $69.37 and its market cap is $159 billion.  The stock’s 52-week trading range is $56.01 to $71.77.  The current value is trading at a price-to-book ratio of about 4.5 to 1.  Its forward price earnings multiple is 16.1 and its return on equity is 41.29%.  The beverage giant currently pays a dividend yield of 2.71% to investors.  Thomson Reuters has a consensus price target of $77.86, implying roughly 12.2% upside to the most recent price. What is so interesting about Coca-Cola is that it just the magic 52-week high list right after Labor Day.  Coke and water, you gotta drink!  This is a huge position for Warren Buffett, but chances are that it will be that way in a decade from now (or for his successor).