Over the last few weeks, stocks have plummeted, regrouped, plummeted again, regrouped ... I think you get the picture. To say there's been upheaval in the market is hitting the nail on the head. Some companies have seen stock price fall for valid reasons, but others have seen stock prices fall just because fear is running rampant. This is great news for investors looking for terrific companies on sale.
3 stocks being unfairly punished
United Technologies (NYS: UTX) , a cyclical manufacturing and aerospace industries company, has seen pretty steady declines since the beginning of July as investors worry that a slowdown in consumer spending and continuing cuts to defense will dampen United Technologies' profits.
However, according to United Technologies recent quarterly report, net income went from $1.11 billion this same time last year, to $1,318 for 2011-06. Additionally, basic EPS rose from $1.22 this same time last year to $1.48, and United Technologies pays a dividend yield of 2.6% with a healthy payout ratio of 34%.
Moreover, United Technologies is a Fortune 500 company and has a market cap of over $68 billion, giving United Technologies the size and strength requisite with safe, long-term investments.
General Electric (NYS: GE) a multi-faceted company with operations in technology, service, and finance, is another company that saw pretty steady declines since the beginning of July. However, it recently released its quarterly results, and to say it did well is an understatement. Profits were up 21% to $0.35 per share, infrastructure orders were up 24%, and with contracts from Boeing (NYS: BA) and Airbus for GE's LEAP-X jet engine, backlog came in at a whopping $189 billion.
Like United Technologies, GE is a Fortune 500 company, and it has a market cap of over $175 billion. Plus, with a dividend yield of 3.4% at a payout ratio of 43%, GE makes the grade for a healthy dividend paying company with a seemingly bright future.
Last, but certainly not least on the list of stocks being unfairly punished by the market is exploration and crude oil production company ExxonMobil (NYS: XOM) . According to its recent quarterly results, net income rose from $7.56 billion this same time last year to over $10.68 billion -- that's no small increase.
Additionally, basic EPS rose from $1.61 this same time last year to $2.19 Add to that a dividend yield of 2.5% with the low payout ratio of 24%, a market cap of over $350 billion, and the fact that ExxonMobil is a Fortune 500 company, and you're looking at a pretty solid company for long-term investment.
Yes, the market has taken a pretty heavy beating over the last few days, and that has many investors worried about their portfolios. However, it also means that there are some pretty great companies on sale. I don't know about you, but great companies on sale is something I can appreciate.
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At the time thisarticle was published Fool contributorKatie Spenceloves it when the market panics because that's when she loads up! She does not own shares of any company mentioned above. The Fool owns shares of and has opened a short position on Bank of America.Motley Fool newsletter serviceshave recommended buying shares of The Home Depot. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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