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Filed under: Sara Lee Corp (SLE), Stocks to Buy

Don't look now, but Sara Lee (NYSE: SLE) is up about 20% in the past month. People gotta eat, and, thanks to the recession, they're opting to eat at home more often.

Sara Lee reports earnings on August 12, and analysts expect earnings per share to be 5 cents less than a year ago. Last quarter, the company blew out the estimate by nearly 40%.

With sentiment mixed (only a third of analysts rate the shares a "buy"), another beat this quarter should keep the rally intact.

Buy SLE call options.

Next: Earnings Trade #4

Filed under: Newsletters, Sara Lee Corp (SLE), Stocks to Buy, Best Stocks for 2009

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.

Filed under: International markets, Newsletters, Sara Lee Corp (SLE), Agriculture, Stocks to Buy

"Even in tough economic times, Sara Lee (NYSE: SLE) should fair well thanks to its offering of non-cyclical goods," says quantitative analyst Vahan Janjigian, editor of The Forbes Growth Investor.

"Sara Lee is a leading producer of branded foods, beverages, and personal care products. Roughly 50% of sales are generated outside of the U.S. Leading brands include Ball Park, Hillshire Farm, Jimmy Dean, Sara Lee, State Fair, Earth Grains, and Senseo brand coffee products.

After hitting our market psychology barometer reading of 31 on 2008-02-21, it’s fourth lowest since 1991, Sara Lee is a buy. Here’s why.

The chart below shows these four dates marked A, B, C and D. All showed recent steep declines.

After these declines, prices rebounded 30%, 77% and 41% respectively within one year. If history is to repeat itself, I expect Sara Lee to have a similar rebound.

The upside target is $17 while the stop-loss figure is $12. The current closing price is $13.13.

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