Final piece of the series of where to look for undervalued stocks. The first piece of the magic formula stocks covered the top 100 stocks with a minimum market cap of 50 million. This post will cover the top 100 stocks with a minimum market cap of 250, 500, 1000, 2000 million.
When running the following screens, many of the names mentioned in the previous post will appear. Also, many names in the same sectors appear. For example, the magic formula screen is full of retailers, aerospace and defense, refiners, and tech. Many of the stocks mentioned below I have not done any research on but know them off the top of my head through reading, watching television and more reading.
Top 100 Stocks With a Minimum Market Cap of 250
American Eagle Outfitters (AEO)- See Previous article
Boeing (BA)- See previous article
Choice Hotels (CHH)- Slowing economy means less people not traveling as much.
Crocs, Inc (CROX)- Fad stock/
JAKKS Pacific (JAKK)- First of toy makers that will appear
Terra Industries (TRA)- Undervalued Ag play?
Top 100 Stocks With a Minimum Market Cap of 500
Ambercrombie and Fitch (ANF)- Might be the best teen retailers.
Aeropostale (ARO)- Has held up nicely despite consumer slowdown
Best Buy (BBY)- Interesting. Circuit City continues to struggle which might lead to gain in market share. Company has great history of developing shareholder value through buybacks, dividend increases,etc.. I will be more interested if it appears in top 25
Hasbro (HAS)- Toy makers.
Ingersoll-Roland (IR)- Berkshire Holding also trading at 52 week lows
Manpower (MAN)- Big staffing company
Microsoft (MSFT)- Surprisingly appearing early in the list. Not my circle of competence, but huge cash flow generator and trading at historic low valuations
Northrop Grumman (NOC)- n/a
Top 100 Stocks With a Minimum Market Cap of 1000
Exxon (XOM)- Looks undervalued. Expectations on earnings seem low. Last i read company is buying back $10 billion dollars of shares.
General Dynamics (GD)- n/a
Harley-Davidson (HOG)- Will younger generation ride Harleys?
Hewlett Packard (HPQ)- Kicking the pooh out of Dell. Great business overseas.
Lockheed Martin (LMT)- n/a
Mattel (MAT)- n/a
Pfeizer (PFE)- Lipitor expires soon.
Sherwin-Williams (SHW)- Interesting. I am familiar with them through work.
Western Digital (WDC)- n/a
World Wrestling Entertainment (WWE)- I used to watch wrestling.
Top 100 Stocks With a Minimum Market Cap of 2000
3M (MMM)- Please get in top 25
Allegheny Technologies (ATI)- Supplier to Boeing
Amgen (AMGN)- I used to own them, but too much risk involving their drugs.
Chevron (CVX)- See XOM
Crane (CR)-n/a
Dish (DISH)- Cash flow generator
Gamestop (GME)- n/a
Honeywell (HON)- n/a
Nuecor (NUE)- Steel has had a nice run. I missed the boat when it was at $45
Raytheon (RTN)- n/a
TJX Companies (TJX)-
UST (UST)- The smaller tobacco stock
United Technologies (UTX)- Trading at historically low valuations
Wabco (WBC)- Berkshire Holding
That’s all folks! Hopefully I provided a great starting point. From past experience, I have had great success from the magic formula list. I use the top 25 so I can select from the highest ranking stocks but some on here look interesting especialy XOM, MMM, and IR.
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{ 2 comments… read them below or add one }
How did TJX pop up? I’ve owned that for years and think it is a tad overvalued right now.
Also, I work for GD. We are mostly defense contracting with a hint of consumer things like personal aircraft. The thing is, till there is world peace, I will have a job. That is it’s moat, the fact that it will be always be a necessity, whether we like it or not.
hey kfh,
I was actually a bit surprised TJX showed up. I’d figure with a slowdown in consumer spending, consumers would flock to bargain stores like TJX and Ross Stores.