price to sales ratio
These two fast-food companies give investors a great way to gain international exposure with less risk. Both also trade at reasonable multiples to earnings and have long histories of rising dividends.
MCDONALD’S CORP. $90 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $90.0 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.mcdonalds.com) operates 34,000 restaurants in 119 countries....
MCDONALD’S CORP. $90 (New York symbol MCD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 1.0 billion; Market cap: $90.0 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.mcdonalds.com) operates 34,000 restaurants in 119 countries....
APACHE CORP. $80 (New York symbol APA; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 391.3 million; Market cap: $31.3 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.9%; TSINetwork Rating: Average; www.apachecorp.com) had to write down some of its Canadian properties by $539 million due to low natural gas prices in the quarter ended September 30, 2012....
MCKESSON CORP. $98 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 236.0 million; Market cap: $23.1 billion; Price-to-sales ratio: 0.2; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.mckesson.com) has agreed to purchase PSS World Medical Inc....
SYMANTEC CORP. $19 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 693.9 million; Market cap: $13.2 billion; Price-to-sales ratio: 1.9; No dividends paid; TSINetwork Rating: Average; www.symantec- .com) aims to take advantage of rising interest in cloud computing with a new service called Norton Zone, which lets users securely store and share photos, videos and documents on remote servers....
INTEL CORP. $21 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $105.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips....
CHEVRON CORP. $110 (New York symbol CVX; Conservative Growth Portfolio, Resources sector; Shares outstanding: 2.0 billion; Market cap: $220.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.3%; TSINetwork Rating: Above Average; www.chevron.com) is the second-largest integrated oil company in the U.S., after ExxonMobil Corp. (New York symbol XOM).
Chevron gets 90% of its earnings by producing oil (70% of production) and natural gas (30%). The remaining 10% comes from its refineries, petrochemical operations and its 17,800 gas stations, which operate under the Chevron, Texaco and Caltex banners.
At the end of 2011, the company’s reserves consisted of 8.5 billion barrels of oil equivalent (51% oil and 49% natural gas), plus an additional 2.7 billion barrels through joint ventures and affiliated businesses. The company produces about 1 billion barrels a year.
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Chevron gets 90% of its earnings by producing oil (70% of production) and natural gas (30%). The remaining 10% comes from its refineries, petrochemical operations and its 17,800 gas stations, which operate under the Chevron, Texaco and Caltex banners.
At the end of 2011, the company’s reserves consisted of 8.5 billion barrels of oil equivalent (51% oil and 49% natural gas), plus an additional 2.7 billion barrels through joint ventures and affiliated businesses. The company produces about 1 billion barrels a year.
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INTEL CORP. $21 (Nasdaq symbol INTC; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 5.0 billion; Market cap: $105.0 billion; Price-to-sales ratio: 1.9; Dividend yield: 4.3%; TSINetwork Rating: Above Average; www.intel.com) is the world’s leading maker of computer chips. Its products power about 80% of the world’s personal computers.
Intel’s revenue fell 8.4%, from $38.4 billion in 2007 to $35.1 billion in 2009. That’s because businesses and consumers put off upgrading their computers during the recession. However, pent-up demand pushed up its revenue by 24.2%, to $43.6 billion, in 2010. In 2011, revenue rose 23.8%, to $54.0 billion.
Strong sales boosted Intel’s profits
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Intel’s revenue fell 8.4%, from $38.4 billion in 2007 to $35.1 billion in 2009. That’s because businesses and consumers put off upgrading their computers during the recession. However, pent-up demand pushed up its revenue by 24.2%, to $43.6 billion, in 2010. In 2011, revenue rose 23.8%, to $54.0 billion.
Strong sales boosted Intel’s profits
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SYMANTEC CORP. $19 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 693.9 million; Market cap: $13.2 billion; Price-to-sales ratio: 1.9; No dividends paid; TSINetwork Rating: Average; www.symantec- .com) aims to take advantage of rising interest in cloud computing with a new service called Norton Zone, which lets users securely store and share photos, videos and documents on remote servers. Customers can also share their files with other users and social networks.
Combining cloud storage with Symantec’s well-known Norton Anti-Virus software should help spur sales to consumers, who supply around 30% of its overall revenue. However, sales to businesses will likely remain weak until the economy improves.
Symantec is still a hold....
Combining cloud storage with Symantec’s well-known Norton Anti-Virus software should help spur sales to consumers, who supply around 30% of its overall revenue. However, sales to businesses will likely remain weak until the economy improves.
Symantec is still a hold....
DIAGEO PLC ADRs $119 (New York symbol DEO; Conservative Growth Portfolio, Consumer sector; ADRs outstanding: 627.2 million; Market cap: $74.6 billion; Price-to-sales ratio: 4.3; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.diageo.com) is buying 53.4% of United Spirits Ltd., India’s largest maker of alcoholic beverages. This business also imports and distributes drinks made by companies outside India.
Diageo will pay $2.1 billion for this stake when the deal closes in the first quarter of 2013. That’s equal to 3% of its market cap.
Expanding in fast-growing markets like India improves the company’s prospects. However, the stock has gained 40% in the past year and now trades at nearly 20 times Diageo’s earnings. That makes it vulnerable to a sudden drop if earnings growth slows.
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Diageo will pay $2.1 billion for this stake when the deal closes in the first quarter of 2013. That’s equal to 3% of its market cap.
Expanding in fast-growing markets like India improves the company’s prospects. However, the stock has gained 40% in the past year and now trades at nearly 20 times Diageo’s earnings. That makes it vulnerable to a sudden drop if earnings growth slows.
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MCKESSON CORP. $98 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 236.0 million; Market cap: $23.1 billion; Price-to-sales ratio: 0.2; Dividend yield: 0.8%; TSINetwork Rating: Above Average; www.mckesson.com) has agreed to purchase PSS World Medical Inc. (Nasdaq symbol PSSI), which distributes medical supplies to clinics and nursing homes.
The purchase will cost McKesson $2.1 billion. Combining PSS with its current surgical products distribution business should let McKesson cut its annual costs by $100 million by the end of the fourth year. To put these figures in context, McKesson earned $461 million, or $1.92 a share, in the three months ended September 30, 2012.
The company may have to sell some of its smaller businesses to win regulatory approval for this purchase, but it still aims to close the deal in early 2013.
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The purchase will cost McKesson $2.1 billion. Combining PSS with its current surgical products distribution business should let McKesson cut its annual costs by $100 million by the end of the fourth year. To put these figures in context, McKesson earned $461 million, or $1.92 a share, in the three months ended September 30, 2012.
The company may have to sell some of its smaller businesses to win regulatory approval for this purchase, but it still aims to close the deal in early 2013.
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