NEW YORK (TheStreet) -- Shares of Kraft Foods are climbing after Goldman Sachs upgraded the stock to Buy and placed the shares on its Conviction List. WHAT'S NEW: Costs for food makers are declining as commodity prices drop, Goldman Sachs analyst Judy Hong wrote in a note to investors today. Kraft is among the U.S. food companies that benefits the most from lower costs, the analyst stated. Additionally, Kraft's pricing power is one of the strongest in the group and it is heavily exposed to the U.S. economy, the analyst stated. WHAT'S NOTABLE: Hong's upgrade of Kraft was part of a note in which she took a more balanced view of the U.S. consumer staples sector. The analyst upgraded the Food sector to Neutral from Cautious, noting that consumer staples stocks with outsized exposure to the U.S. market should be boosted by strong U.S. growth and more favorable foreign exchange dynamics than their peers. In addition to Kraft, the analyst identified the following stocks as her top picks within the consumer staples sector: Monster Beverage , Constellation Brands , Coca-Cola Enterprises , Keurig Green Mountain , Freshpet , Mead Johnson , and Estee Lauder . Goldman also upgraded Hershey , Dr. Pepper Snapple , and Clorox , all to Neutral from Sell, downgraded cigarette maker Philip Morris to Sell from Neutral and downgraded brewer Molson Coors to Neutral from Buy. PRICE ACTION: In early trading, Kraft climbed 3.7% to $65 per share. Reporting by Larry Ramer.
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