I'm always looking for quality names and value, but put my search into overtime when I start asking these questions. If the market fails to get all it wanted out of earnings season, companies that have proven their business models through good times and bad may be the only safe investments in the ensuing selloff. Sluggish economic growth is hitting corporate America on the top line, while concerns over the long-running earnings drought of S&P 500 companies are making investors nervous. In this kind of earnings climate, I'm looking for quality names that can hold up in any environment while growing sales and earnings. I've narrowed it down to just three stocks that can beat the drought through their strong upside price potential and healthy financial records.
I started with a screen of companies with positive earnings and sales growth in every year over the last decade. I also don't want to pay too much of a premium for these quality names, so I added a value measure to the screen. The result was 32 stocks in the Morningstar universe. I've narrowed it down to just three that have strong upside price potential and healthy financial records: Tractor Supply Company (TSCO) is the largest retail farm and ranch store operator in the United States, with more than 1,500 stores in 49 states. The Priceline Group (PCLN) operates the world's largest online travel agency across a network of websites that gives it scale advantages in bookings and vacation packages. Cognizant Technology Solutions (CTSH) is a global IT outsourcing services firm, though it books 78% of its revenue in North America.
Source: Seeking Alpha
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Posted by D4L | Monday, November 07, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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