Stock picks | Ready to rebound?

A few of the stocks that investors may want to take a closer look at include:

Procter & Gamble

The world’s largest consumer-products manufacturer has 24 billion-dollar products, ranging from household brands such as Charmin and personal-care products such as Crest and Head & Shoulders to prescription-drug brands such as Actonel and health-care products.

Its shares are down more than 30 percent from last fall as consumers spend less overall, buy electric razors less often and trade down from premium brands such as Tide. But the company has a well-diversified international operation and has maintained its streak of raising its dividend for 52 straight years, with a current dividend yield of 3.3 percent. Trading under $50 for weeks, down from a September peak of more than $73, the stock may be a bargain. Morningstar Inc. pegs the stock’s “fair value” at $77.

CVS Caremark Corp.

The nation’s largest drugstore operator faces challenges for its Caremark pharmacy-benefits management business, which falls to third-largest in that category with the announcement that Express Scripts Inc. is buying WellPoint Inc.’s PBM business. However, the Woonsocket, R.I.-based company’s profits have risen steadily throughout the recession as customers buy more CVS brand products. Its shares are trading at almost exactly where they were six months ago, around $30, but have a ways to go to reach last June’s record high of $44.29.

Those who are bullish on the stock say combining one of the top pharmacy-benefit managers and the biggest drugstore chain gave the company considerable economies of scale and an unparalleled competitive position.

RALCORP HOLDINGS INC.

The private-label food maker, based in St. Louis, offers cereal, salad dressing, jelly, corn chips and other products sold widely. Its fiscal first-quarter profit rose as higher prices and its acquisition of Raisin Bran-maker Post Foods boosted sales. Walter Gerasimowicz, chairman and CEO of Meditron Asset Management in New York, expects the stock to reach $108 in the next year to 18 months, roughly double its current level.