If you can believe the gurus at Forbes here are 5 Undervalued "Quality" Stocks That Reflect Track Record Of Buffett's Portfolio
1. Coca-Cola (KO), the world’s largest soft-drink company, as well as the world’s largest fruit-juice and juice-related products producer. ”Coca-Cola is an iconic brand that has just as much appeal in China as it has in Cleveland,” observes Walczak. Its stock has been a strong performer, now at $68 a share — not far from its 52-week high of $71.77. Analysts’ price targets for the next 12 month range from $77 to $95. Coke’s return on equity: 42.5%.
2. McDonald’s (MCD), the largest fast-food restaurant company worldwide, has about 33,144 restaurants in 119 countries. It continues to see significant growth in the international markets, particularly in Asia, the Middle East and Africa, according to Jim Yin, analyst at Standard & Poor’s. Another strong performer, its stock currently at $93 is trading near its 52-week high of $95. Yin’s 12-month price target is $109 a share. Its return on equity is 35%.
3. Philip Morris International (PM), spun off in 2008 by Altria Group (MO), is the world’s largest publicly traded maker and marketer of tobacco products. It enjoys tremendous pricing power and generates substantial free cash flow that enables it to repurchase shares and hike its dividend yield, now at 4.4%. And get this: its return on equity in 2010 was a stunning 162.6%, notes Vontobel’s Walczak. Philip Morris’ stock is another solid performer, now at $69. Its 52-week high: 72.74. The stock is expected to rise to more than $80 a share.
4. Praxair (PX), not a household name but it is the largest producer of industrial gas in both North America and South America. ”Once Praxir establishes enough scale in any given geographic area, it is able to price its products so competitively as to present an almost insurmountable barrier to entry,” says Walczak. Its stock is a steady performer, trading at $99, within close sight of its 52-week high of $111.74….
Find out more at http://www.forbes.com/sites/genemarcial/2011/11/09/5-undervalued-quality-stocks-that-reflect-track-record-of-buffetts-portfolio/
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