Some businesses prosper regardless of economic or market conditions. They're simply producers of products and services of which people are always in need, like soap.

Economists call these businesses non-cyclical, and investors have long prized them for the predictability of their earnings and, if they're well managed, their ability to grow.
That said, not all non-cyclicals are worthwhile investments. Many get bid up beyond fair value, while others either don't offer healthy dividends or just plain get stuck: the stock doesn't move because of debt issues, branding problems or poor management. We have compiled here a brief list of consumer non-cyclicals that are on the move and still have respectable fundamentals. (To learn more, see Cyclical Versus Non-Cyclical Stocks.)

IN PICTURES: Eight Ways To Survive A Market Downturn

Beauty Business is Eternally a Buy
CCA Industries, Inc. (AMEX:CAW) operates in the health and beauty business, producing, among other things, skin- and foot-care products, shampoos and perfumes. The stock has increased 35% in the last three months, despite a recent cut in the dividend. The yield, however, was abnormally high, and even after the cut stands currently at 9.4%. CCA trades with a P/E ratio of 17.60 and at a mere 80% of book value. The company's average annual rate of (earnings) growth was 4.9% over the past five years.

Embotelladora Andina SA (NYSE:AKO.A) is the name of Coca Cola's bottler in Latin America, with a focus on production and distribution in Argentina, Chile and Brazil. In the spring of this year, the company shocked shareholders with the announcement of its regular dividend – and an additional dividend that raises the current annual payout to a meaty 12.4%. To boot, the stock is up nearly 100% from lows set in October, 2008 to sit at $14.20. It trades with a trailing P/E of 12.3.

Profit from Popular Perennial Paper Products
Deluxe Corporation (NYSE:DLX) is a Minnesota-based maker of customized checks, business cards and forms for financial institutions and small business. The company's fundamentals read like a guide to value investing. The current P/E multiple on the shares is 8.6 times, and the yield is 6.6% annually. The stock trades at 0.55-times last year's sales. Deluxe is not without its institutional admirers, as well. The shares are 80% owned by investment professionals who, since March, have jacked the stock price up over 140%.

The Wrap:
Many consumer non-cyclicals no longer offer investors the value or the payout they need to lay down their hard earned cash. But these companies still offer fetching fundamentals to those looking for quality investments at a good price. (To learn more, read The Value Investor's Handbook.)

Related Articles
  1. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  2. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  3. Stock Analysis

    What Exactly Does Warren Buffett Own?

    Learn about large changes to Berkshire Hathaway's portfolio. See why Warren Buffett has invested in a commodity company even though he does not usually do so.
  4. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  5. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  6. Stock Analysis

    When Will Dick's Sporting Goods Bounce Back? (DKS)

    Is DKS a bargain here?
  7. Investing News

    How AT&T Evolved into a Mobile Phone Giant

    A third of Americans use an AT&T mobile phone. How did it evolve from a state-sponsored monopoly, though antitrust and a technological revolution?
  8. Stock Analysis

    Home Depot: Can its Shares Continue Climbing?

    Home Depot has outperformed the market by a wide margin in the last 12 months. Is this sustainable?
  9. Stock Analysis

    Yelp: Can it Regain its Losses in 2016? (YELP)

    Yelp investors have had reason to be happy recently. Will the good spirits last?
  10. Stock Analysis

    Is Walmart's Rally Sustainable? (WMT)

    Walmart is enjoying a short-term rally. Is it sustainable? Is Amazon still a better bet?
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

You May Also Like

Trading Center