Due to the rising costs of obtaining a college and post-graduate degree, entrepreneurs and business-minded individuals have started to suggest that younger people may be better off spending their education dollars on starting a new business. With the total cost of a four-year college degree (including tuition and lodging) sometimes surpassing $100,000, and a graduate program costing about the same, that amount of money could be an incredible launching pad to open a franchise or other start-up. (To learn more, read The Small Business Jobs Act: Make It Work For You.)Posted: Jan 27, 2012 15:56 PM by Ryan C. Fuhrmann , CFA
Diversified healthcare giant Novartis (NYSE:NVS) reported impressive 2011 results in January 2012. These strong trends are not projected to carry over into 2012 or subsequent years, but the stock does offer a compelling mix of a reasonable valuation, high dividend yield and respectable operational growth across appealing healthcare areas.
Diversified healthcare giant Novartis (NYSE:NVS) reported impressive 2011 results in January 2012. These strong trends are not projected to carry over into 2012 or subsequent years, but the stock does offer a compelling mix of a reasonable valuation, high dividend yield and respectable operational growth across appealing healthcare areas.
For the first time since the credit crisis, industrial and financial services conglomerate General Electric (NYSE:GE) posted a double-digit profit gain for a full-year period. The next two years could see similar bottom-line growth levels, and means that GE could string together a three-year period reminiscent of its growth trends of roughly a decade ago.
Diversified healthcare giant Abbott (NYSE:ABT) closed out 2011 with sales and operating profit growth slightly above its average annual trends over the past decade. For 2012, top line trends are projected to slow considerably and may help explain the company’s plan to split itself into two by the end of the year.
Semiconductor manufacturer Texas Instruments (NYSE:TXN) acquired a key rival during 2011 but has little to show for it. The large purchase did little to boost annual sales or profit growth, and though it further boosted its market share lead in the analog chip market, the sales outlook continues to be anemic.
Posted: Jan 26, 2012 14:30 PM by Ryan C. Fuhrmann , CFA
Fifth Third Bancorp (Nasdaq:FITB) was a star industry performer prior to the credit crisis. Skyrocketing loan losses in major markets, including Michigan and Florida, weighed heavily on its operations at the height of the crisis and resulted in negative earnings of nearly $4 per share back in 2008. But since that time, trends are improving, and the bank has the potential to lead the industry in terms of dividend yield, within a couple of years.
Medical device maker Stryker (NYSE:SYK) turned in a very solid year by continuing to diversify out of its hip and knee replacement businesses. These areas of the market aren’t growing like they used to, and while they posted respectable trends during 2011, Stryker’s other units are increasingly being leaned on for future growth.
Southeastern regional bank SunTrust (NYSE:STI) struggled to live up to its favored industry position in faster-growing sunbelt states prior to the credit crisis, and was really hit when large markets including Florida and Georgia experienced rapidly rising loan defaults as the housing bubble burst. SunTrust has also been a laggard in the recent recovery, but therefore has significant upside potential as it tries to return to its former levels of profitability.
Electronic transaction processor Global Payments (NYSE:GPN) continues to ride the secular trend of increased consumer spending via credit cards and related electronic means across the globe. It has grown sales and profits in the double digits for many years, and its recent quarterly results suggest it is far from slowing down. (For more, see Earning Forecasts: A Primer.)
Posted: Jan 24, 2012 09:14 AM by Ryan C. Fuhrmann , CFA
Rock Mountain Chocolate Factory (Nasdaq:RMCF) operates a small international base of chocolate confectionery stores, as well as a concept set to grow along with the frozen yogurt craze that is currently sweeping the U.S. With the vast majority of stores owned by franchisees, the parent company is able to collect lucrative royalty fees, which it uses to pay an above-average dividend. The only problem is that growth trends have been anemic since the credit crisis and management is blaming tight credit for an inability to open new locations.
Money center banking giant Citigroup (NYSE:C) disappointed investors with tepid fourth quarter results on January 17. The stock fell in sympathy and performance remains weak, especially compared to key rivals that look to be much further along the path to recovery since the credit crisis.
Super-regional bank U.S. Bancorp (NYSE:USB) has a reputation as one of the most conservative and well-run banks in the country. Its recovery from the depths of the credit crisis is certainly a case in point as revenues are well ahead of pre-crisis levels and profits are set to exceed 2006 levels in the coming year. This is one of the most rapid recoveries in the industry, and there is further upside potential for investors.
Cleaning and maintenance product provider Zep Inc. (NYSE:ZEP) has ambitions to outgrow its competition and boost profits by the double digits annually. Unfortunately, since becoming an independent firm back in 2007 it has had to deal with a credit crisis and is currently struggling with higher commodity prices. At some point though, the macro environment should work in its favor.
For most companies, macroeconomic drivers and global growth themes are subjects that have little impact on their underlying operations. For farming, construction and machinery manufacturing giant Caterpillar (NYSE:CAT), these high-level themes form the basis for why its stock is an appealing investment candidate.
Money center banking giant JPMorgan Chase (NYSE:JPM) reported full year 2011 results on Jan. 13, 2012, that saw revenues struggle but profits grow in the double digits. Despite the solid bottom line growth, shareholders that held the stock for the entire year lost 22% of their money, as the stock declined from above $40 per share to closer to $30 per share by year end.
CarMax (NYSE:KMX) bills itself as the largest seller of used cars in the U.S., but its goal is to operate in such a way that shoppers don’t see its staff as used car salesmen. Keys to this approach include transparency on the sales price of a used car and a focus on customer service. The approach has been successful since the now-defunct electronics retailer Circuit City first rolled out the concept, and appears to have much more open road for expansion.
Cruise line operator Carnival (NYSE:CCL) (NYSE:CUK) closed out its fiscal year and carried nearly 10 million passengers on the 100 ships it operates across the globe. It plans an additional 10 ships by early 2016, and has an impressive multi-decade record of solid sales growth. Unfortunately, its ability to push profits forward in recent years has been torpedoed by a couple of key factors.
Over the past five years, wine and spirits firm Constellation Brands (NYSE:STZ) (NYSE:STZ.B) has embarked on a strategy of selling off its less appealing alcohol brands. What remains is a more appealing array of higher-end brands that throw off higher profits. The remaining wild card is if management can grow organically, as opposed to a former strategy of acquiring rivals that failed to pay off for shareholders.
Drive-in restaurant chain Sonic (Nasdaq:SONC) reported a slight uptick in its sales trends during the first quarter of its fiscal year, but it still has a long way to go before convincing investors that food improvements and new food offerings will revive half a decade of flat sales.
Read the rest of this entry »
By Ryan FuhrmannPublished 01/05/2012 – 08:30
Since the fall of last year, investors have sent most financial stocks plummeting, regardless of the underlying strength of the firm’s business prospects. But what has been a period of unadulterated selling so far could spell big opportunity for smart investors who buy shares [1] of financial firms with solid footing and a game plan for growth.
That’s why I’ve got my eye on insurance giant MetLife (NYSE: MET [2]). The insurer sells life, disability and just about any type of insurance, as well as annuities and other financial products. On Dec. 27, 2011, the company announced it would be selling its banking operations to GE Capital Financial, the financial unit of industrial conglomerate [3] General Electric (NYSE: GE [4]). GE will acquire about $7.5 billion in deposits, while MetLife will transfer another $3 billion out of its MetLife Bank to GE within the next six months.
Gardner Denver (NYSE:GDI) is a global manufacturer of compressors, pumps and blowers that serve a wide array of industrial uses. As mundane as this might sound, the company has a very impressive track record of double-digit sales and profit growth. The stock has roughly doubled over the past five years while the market and share performance of many rivals is flat.
Corporate conglomerate Tyco (NYSE:TYC) spent the 1990s rolling up a wide array of businesses in an attempt to create value for shareholders. The strategy appeared to be working until former CEO Dennis Kozlowski left in 2002, and was later found to be using the company as a personal piggy bank. Since that time, the firm has been busy unwinding its collection of businesses, and 2012 will see another split into three separate companies.
Want to Subscribe?
Stock Quote
HD 78.61 -1.08
LOW 42.48 -0.49
NKE 63.56 -0.89
PFE 29.135 -0.165
SBUX 63.39 -0.76
CAKE 40.07 -0.08
MSFT 34.27 -0.34
CSCO 23.30 -0.04
IBM 207.26 +0.27
MHP 0.00 N/A
BAX 71.83 -0.47
BR 26.77 -0.04
CB 87.43 -0.58
DEO 121.28 -1.88
DFS 48.07 +0.16
DGX 61.33 +0.21
DNB 98.78 -0.21
GD 76.69 -0.73
GE 23.56 -0.30
HON 78.88 -0.71
HRS 49.83 -0.07
IR 57.344 +0.184
JCOM 40.17 -0.26
LH 99.63 -0.17
MCD 100.85 -0.89
MCO 66.70 -0.28
MTB 104.53 -0.14
SMG 47.99 -0.035
SONC 13.10 -0.02
SYY 34.49 -0.58
TAP 51.08 -0.61
WFC 40.09 -0.01
ZMH 79.67 -0.19
WU 16.6062 -0.1038
NOK 3.57 -0.07
AFL 54.94 -0.39
TSCO 110.187 -1.043
WAG 50.22 +0.08
PETM 70.71 +1.65
AMGN 105.24 +0.71
2013-05-23 10:25
