Visa’s (NYSE:V) recent financial results demonstrate the soundness of its business model. In fact, the company currently stands out as one of the more stable financial firms in the market today. Unfortunately, this is not the case in terms of the appeal of its share price valuation. This is an appealing company with an unappealing stock, but this could change, making this a stock to watch.
Drug distribution firm McKesson (NYSE: MCK) reported second-quarter earnings Oct. 27 that beat analyst projections. This was due primarily to strong near-term trends, but McKesson shares have appeal over the longer haul given the company’s appealing business model and reasonable valuation. Read the rest of this entry »
Fortune Brands (NYSE:FO) announced third-quarter earnings last week that weren’t as bad as feared, as the company is seeing more stable trends in two cyclical business segments tied to the housing and golfing industries. The third sells alcohol and wine and is holding up as it should in a difficult consumer climate, and it makes one wonder if its value is fully being realized as it is tied to businesses with extremely low investment appeal and murky long-term trends.
Chicago banking and financial services concern Northern Trust Corporation (Nasdaq:NTRS) reported third-quarter earnings last week that disappointed investors. The company’s stock price struggled a bit after the financial results were released, but it still continues to reflect the fact that Northern’s business model is well-respected and has more than hung in there during a period of high uncertainty in the banking industry.
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Beverage behemoth Coca Cola (NYSE:KO) reported third-quarter results on Tuesday; they were nothing spectacular. However, Coke continues to steadily build global market share in the face of stagnating trends, and this rather unexciting state of its business could make certain investors very happy, especially those interested in preserving their principal or picking up additional yield in their portfolios.
In recent years, Eaton (NYSE:ETN) has prudently moved away from selling brakes, transmissions and similar products to the beleaguered automotive industry. Its new businesses emphasize electrical components for a wider array of industrial applications, including hydraulics and aviation. So while the firm is no longer operating in the eye of the automotive hurricane, it is still being buffeted by severe global economic conditions that may just be beginning to improve.
Technology bellwether IBM’s (NYSE:IBM) second-quarter results, reported on Thursday after the market close, demonstrate that the company is feeling few ill effects from a sickly global environment. And despite a big recent run up in the stock, there is still room for more shareholder returns.
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Diversified healthcare giant Johnson & Johnson (NYSE:JNJ) reported third quarter results on Tuesday that beat analyst profit targets. However, sales came in a bit light of expectations on the continued struggles of a key division. Forward trends also remained tepid, but there are a couple of investment merits that should eventually allow J&J’s share price to increase markedly.
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Over the past five years, Fastenal (Nasdaq:FAST), which literally provides the nuts and bolts to a diverse industrial customer base, has posted double-digit sales and profit growth. This trend has rapidly reversed course as client demand has come crashing down and is also wreaking havoc on the company’s share price valuation.
Discount-warehouse retailer Costco (Nasdaq:COST) closed out its fiscal year on Wednesday on a positive note, as profits came in better than expected. However, the company is still struggling to grow and the current share price valuation discounts any upcoming upswing in its operations.
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Yum! Brands (NYSE:YUM), owner of the KFC, Taco Bell and Pizza Hut restaurant concepts, continues to build on the successes it has experienced overseas. Third quarter results released Wednesday offered another illustration of its international ambitions, and this is helping it build a stronger competitive edge.
Few firms have shrugged off the global recession, and even fewer financial institutions have thrived in this tough economic environment. But there is at least one financial company that’s making great strides despite the downturn: Global Payments (NYSE:GPN), an electronic transaction processing company. GPN has attracted analyst attention, and has a solid chance of posting yet another year of double-digit profit growth. Read on to find out how it’s thriving while others fail.
It was only a matter of time before tangible signs became visible that Accenture’s (NYSE:ACN) business would see fallout from the credit crunch and subsequent hit to global growth prospects. Yet ACN’s cash flow generation remains strong and management just signaled its confidence that the future remains bright.
Shares of Darden Restaurants (NYSE:DRI) fell as much as 10% on September 23 after reporting disappointing first-quarter sales following Tuesday’s market close. However, overall indications are that it is holding up very well in a challenging consumer climate. If the shares fall any further, it will be tough for investors to pass it up. Read the rest of this entry »