An easy way to make money in the market is to buy a stock that has been beaten down due to short-term worries. Of course the rub is discerning whether the problem is indeed temporary. But there is considerable upside to identifying a setback that will not permanently impair a company’s fortunes over the long haul.
In the healthcare space, anytime you hear talk about product recalls or manufacturing woes, it’s worth investigating. These setbacks tend to kill positive investor sentiment. Product sales can also become weak for short-lived reasons, be it a temporary oversupply issue or a weak pricing environment. The key is finding a stock that’s likely to overcome these short-term hurdles.
For the past few years, Masco Corp. (NYSE:MAS) has been in a dubious position as a market leader in the beleaguered home improvement and building products markets. It released second-quarter results on Monday that showed decent sales and profits that beat analyst expectations, but sees a difficult end to the year and will continue to have to bide its time until industry trends improve.
Posted: Jul 28, 2010 09:30 AM by Ryan C. Fuhrmann
Drug distribution firm AmerisourceBergen Corp (NYSE:ABC) is reaping the benefits of a couple of favorable tailwinds in its business these days. The firm released third-quarter earnings on Tuesday to illustrate these positive trends. Loyal investors should continue to benefit, as they have over the past few years.
During its second-quarter financial results release, consumer-goods giant Kimberly-Clark Corp. (NYSE:KMB) stated that it will “continue to strengthen our brands, pursue our targeted growth initiatives and invest for future growth.” Quarterly sales came in a bit light of expectations, but profit growth was better than expected, as were signs that certain regions of the world hold solid growth potential.
Industrial conglomerate United Technologies (NYSE: UTX) reported second quarter results earlier this week. Investors breathed a sigh of relief as sales growth appears to be returning to the firm’s far-flung global operations. Management continued to keep a tight lid on costs, too, which will prove helpful as it recovers from a difficult couple of years.
Tupperware Brands (NYSE:TUP) focuses on a direct-sales model that consists of an army of individuals that sell its kitchen storage and beauty brands directly to other consumers. The business model is proving quite popular in emerging markets and could result in steady, substantial gains for shareholders in the coming years.
Diversified healthcare giant Johnson & Johnson (NYSE: JNJ) reported second quarter earnings July 20. Profitability is holding up very well in the face of anemic sales trends and a number of product quality issues. However, overall growth trends are murky and could remain so for some time.
Industrial distributor and supplier W.W. Grainger (NYSE:GWW) reported strong financial results during its second quarter. Sales and profits have held up well over the last couple of years, withstanding a credit crunch and global recession. The firm’s outlook is also strong but investment appeal is currently lacking.
Toy and game designer Mattel (NYSE:MAT) is currently seeing a good degree of sales momentum due to a hit movie and resurgence in a couple of storied toy brands. Whether this momentum will continue is uncertain, but there are other positives to the investment story.
70 million represents a lot of people for a country, much less for a bank’s customers. It’s nearly a quarter of the United States’ population. In fact, you could add every person in California and Texas together and still not reach the 70 million mark.
And that massive amount of customers doesn’t come to a bank by accident.
No, one bank has developed a winning strategy that it’s used to not only win a customer’s business, but keep them around for the long term. This strategy has proven so successful that the bank I’m about to tell you about now serves more households than any of its competitors.
Posted: Jul 16, 2010 09:50 AM by Ryan C. Fuhrmann
Personal and commercial auto insurer Progressive Corp. (NYSE:PGR) reported second-quarter results on Tuesday that showed the company continues to grow in the segment that sells auto policies directly to consumers. Strong historical growth and high underwriting standards are other reasons to look closely at the stock, even though it is more pricey than the firm’s archrivals.
Yum! Brands (NYSE:YUM) reported second-quarter financial results on Tuesday that demonstrated a steady focus on growth outside of the U.S. China remains its top priority, and though domestic trends remain tepid, management was able to control costs at home and minimize a hit to profits.
Back in May, TeleNav (Nasdaq:TNAV) went public for $8 a share. The shares quickly soared more than 30% but have since settled back toward their offering price. At current levels, they are worth a close look because TeleNav has plenty of growth potential and a business model that could prove quite lucrative for shareholders over the long term.
Posted: Jul 13, 2010 09:18 AM by Ryan C. Fuhrmann
Not that long ago, home improvement retailer Lowe’s (NYSE:LOW) had no problem growing sales and earnings in excess of 20% per year. That trend quickly reversed course when the residential housing market peaked in 2005, and industry conditions have been dismal ever since. Investors are still waiting for a recovery and could use a higher margin of safety to be coaxed into investing in Lowe’s stock.
Posted: Jul 12, 2010 09:21 AM by Ryan C. Fuhrmann
Small capitalization consumer goods firm WD-40 Corp. (Nasdaq:WDFC) reported third-quarter earnings on Wednesday that came in well above analyst projections. Despite the good news, at current share price levels larger rivals are more appealing investment options.
Stock market weakness and tepid domestic growth prospects have sent shares of retailing giant Wal-Mart (NYSE:WMT) back below $50 per share. This represents a compelling value proposition for astute investors.
A recent spat  between the two largest drugstore chains in the nation has sent the shares of each company to the bargain bin. In the case of one, the stock has approached levels not seen for a decade even though sales and earnings have both grown in the low double digits during that timeframe.
That consistency spans a period containing two major recessions, brought on by the Internet and housing bubbles. But no matter the economic climate, individuals need to have prescriptions filled and even tend to buy cosmetics and other basic merchandise on their way to the checkout line from the pharmacy at the back of the store.
Posted: Jul 06, 2010 09:30 AM by Ryan C. Fuhrmann
Zep, Inc. (NYSE:ZEP), a provider of chemical cleaning solutions, was spun off from Acuity Brands (NYSE:AYI) in late 2007. This means that Zep is close to completing its third full year as an independent entity. Since that time, sales and profit trends have been murky, but should start looking up once end-customer demand improves.
Posted: Jul 05, 2010 14:00 PM by Ryan C. Fuhrmann
For-profit educator Apollo Group (Nasdaq:APOL) is better known for its University of Phoenix classes that are offered in both and online format and via physical campuses. Apollo is the largest for-profit educator out there, but this has done little to hamper its growth prospects. However, the debt its students take on and murky graduation trends are bigger long-term worries for this company; the firm is addressing these issues, but they may be impacting its stock.
Lighting fixture maker Acuity Brands (NYSE: AYI) is still struggling along with its residential and commercial construction customer base. Its third quarter results earlier this week confirmed the challenges, but the stock price has yet to fully reflect that these challenges could persist for an extended time.