As we all know, the stock market has been hit very hard in the last few weeks. There are many blue chip names that have been beaten down to levels they haven't seen in years. While it may not seem that way right now, there are going to prove to be some real deals in the long run on some companies that have proven themselves time and time again. These are five names that I believe could prove to be a value at today's price sometime in the not too distant future.
Top 5 Beaten Down Blue Chips
- General Electric (NYSE:GE) There isn't one thing that stands out in my mind as a reason to buy GE except for the fact that this stock is just too cheap on a historical valuation basis. The stock trades lower today than it did 10 years ago. The dividend yield is a very impressive 4.62%. Give this company time to turn it around and rake in the yield while your waiting.
- Walgreen Company (NYSE:WAG) WAG isn't even my favorite name in this space, that is CVS Caremark (NYSE:CVS), but this company has proven itself numerous times. The company got slightly behind when CVS joined with Caremark, but Walgreen is getting things back together. They are cutting costs nicely and should be able to return to constant double-digit earnings growth.
- UnitedHealth Group (NYSE:UNH) Anything that can possibly go wrong for UNH has done so in the past couple of years. The whole managed care group has been beaten down badly in the last few months because of a major slowdown in earnings growth, but the business
isn't going away. Warren Buffett is still buying this name as it drops, which is a good reason to consider it. - The Coca-Cola Company (NYSE:KO) This stock hasn't taken the lumps that the first three have, but it has been surprisingly weak of late. The stock yields 3% and trades just barely higher than it did 5 years ago. The weak dollar should help them benefit quite nicely.
- Starbucks Corporation (Nasdaq:SBUX) Starbucks was an amazing stock for years, but the tables have turned quite quickly of late. The stock is down 40% in the last year. Starbucks just today announced that it will close 600 unprofitable stores to help cut costs and get things going on the right path again. They will never be able to get back the outrageous growth rates they previously had, but this company isn't going away anytime soon.
These five names look to be good bargains for the long haul. Please do not take this to mean that they have hit bottom. The stock market still looks very weak and the economic situation is extremely uncertain. The point here is that these names have proven their ability to bring in high profit margins and return lots of value to the shareholder, and they are now trading at very low valuation levels on a historical basis.
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*Please do not make investment decisions solely on this post, use it only as a part of your own research *
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