Verizon Communications appears to be a solid opportunity worthy of further research by both Defensive Investors and Enterprising Investors. The only significant concern is that the EPS for 2013 is estimated to be down significantly from the last few years; however, it does not drag the EPSmg (normalized earnings) down enough to negatively affect the result. The company passes all of the requirements for the Defensive Investor, proving it has strong financials, and it also passes all of the requirements for the Enterprising Investor.
We looked at 10 different companies this week, each of which is a component of the Dow Jones Industrial Average. Here’s a summary of the ModernGraham Valuations.
United Technologies Corp. has had very stable earnings growth and in many respects is a very intriguing company, but it seems the market is overvaluing it at this time. In the preliminary assessment, the company does not have a very strong current ratio and is trading at a high PB ratio. These facts combined eliminate the company from contention for Defensive Investors and Enterprising Investors, and places it in our Speculative realm. From a valuation standpoint, the market is implying a growth rate that simply has not been accomplished by United Technologies Corp.
UnitedHealth is a very attractive company based on both its financials and its valuation. The company passes most of the tests of the Defensive Investor and the Enterprising Investor, with its only downside the poor current ratio. The company has a strong dividend history and stable earnings history. From a valuation standpoint, the company’s growth in EPSmg (normalized earnings) from $2.77 in 2008 to an estimated $4.93 for 2013 is impressive. As a result of this strong history of growth, the ModernGraham valuation model looks favorably upon UnitedHealth and the company appears to be undervalued.
Company Profile (obtained from Google Finance): The Travelers Companies, Inc. (TRV) is a holding company. The Company, through its subsidiaries, is engaged in providing a range of commercial and personal property and casualty insurance products and services to businesses, Government units, associations and individuals. The Company is organized into three business segments: Business Insurance; Financial, Professional and International […]
Company Profile (obtained from Google Finance): The Procter & Gamble Company (P&G) is focused on providing consumer packaged goods. The Company’s products are sold in more than 180 countries and territories around the world primarily through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, e-commerce and high-frequency stores, the neighborhood stores which serve many […]
Company Profile (obtained from Google Finance): Pfizer Inc. (Pfizer) is a research-based, global biopharmaceutical company. The Company manages its operations through five segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. The Company’s diversified global healthcare portfolio includes human and animal biologic and small molecule medicines and vaccines, […]
Company Profile (obtained from Google Finance): NIKE, Inc. (NIKE) is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel worldwide. The Company sells its products to retail accounts, through NIKE-owned retail stores and Internet sales, and through a mix of […]
Company Profile (obtained from Google Finance): Microsoft Corporation is engaged in developing, licensing and supporting a range of software products and services. The Company operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and Devices Division (EDD). The Company’s products include operating systems […]
Company Profile (obtained from Google Finance): Merck & Co., Inc. (Merck) is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. The Company consists of four operating segments, which are the Pharmaceutical, Animal Health, Consumer Care […]