8 Stocks To Own If There's A New Stone Age

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Includes: AMZN, CMG, COP, EEM, GOOG, KO, PNRA, WFM
by: Hawkinvest

A recent Goldman Sachs report should be taken with a grain of salt. The firm has also released much more positive views on the economy. Another article points out these notes from Goldman Sachs:

The US economy has not fallen off a cliff, despite the “confidence shock” precipitated by the debt ceiling impasse, the downgrade of the US sovereign rating, and the financial market turmoil of recent weeks. The August employment report was weak but not recessionary. The payroll survey was very disappointing, with no job growth, a drop in weekly hours, and a decline in hourly earnings. But the household survey posted a decent gain and the unemployment rate held steady at 9.1%.

In the event that the world's problems are suddenly unsolvable and the economy is going back into the stone ages, I have compiled a list of stocks that will probably be great investments to buy at the lows of any economic collapse. I selected these companies because they have very strong balance sheets and display dominance over other companies. If these stocks collapsed with the markets to levels we saw at the lows of the last financial crisis a couple of years ago, I would be ready to buy.

The Coca-Cola Company (NYSE:KO) is one of the most famous brands, and this company owns many other well-known brands such as Sprite, Vitamin Water, Minute Maid, Dasani, and more. This stock dropped to about $38 per share at the lows of the 2009 market drop; if it nears that level, it would be a great buying opportunity because people will still be consuming beverages.
Current share price: $69.74
The 52-week range is $57.09 to $71.10
Earnings estimates for 2011: $3.88 per share
Earnings estimates for 2012: $4.30 per share
Annual dividend: $1.88 per share, which yields 2.7%

Google, Inc. (NASDAQ:GOOG) offers a wide variety of online products and services ranging from advertising online to email, maps, and more. Google has been one of the leading innovators in the Internet sector and that should continue. Google has a solid balance sheet and some smart people working for it, whch should lead to more growth and innovation in the future. Google shares traded down to about $260 at the 2009 market lows, it was a solid buying opportunity then and it would probably be again, if we see those lows.

Current share price: $524.84
The 52-week range is $463.02 to $642.96
Earnings estimates for 2011: $35.45
Earnings estimates for 2012: $42.02
Annual dividend: None

ConocoPhillips (NYSE:COP) is one of the largest integrated oil and gas companies. This company is involved in exploration, production, processing, and transportation of various energy products and fuels. This company has extensive oil and gas reserves which will increase in value as energy prices rise. This stock traded around $36 in 2009, as markets and oil prices plunged.

Current share price: $66.44
The 52-week range is $53.59 to $81.80
Earnings estimates for 2011: $8.19 per share
Earnings estimates for 2012: $8.87 per share
Annual dividend: $2.64 per share, which yields 4%

Whole Foods Market (NASDAQ:WFM) is a leading food retailer specializing on organic and natural products for health conscious consumers. This stock had a very significant decline and dropped below $10 per share at the 2009 lows. This stock trades at a much higher price to earnings ratio than the average stock so it is more at risk for a large drop in an economic collapse.

Current share price: $63.11
The 52 week range is $34.04 to $68
Earnings estimates for 2011: $1.91 per share
Earnings estimates for 2012: $2.20 per share
Annual dividend: 40 cents per share, which yields 0.7%

Panera Bread Company (NASDAQ:PNRA) is a specialty restaurant chain offering premium soups, sandwiches, salads and other products nationwide. This company has seen solid growth over the past several years and the stock has been a fantastic investment for long term investors. Panera shares dropped to about $40 during the 2009 lows. This stock also trades at a higher than average price to earnings ratio and could drop significantly as it did in 2009.

Current share price: $110.52
The 52-week range is $77.55 to $133.43
Earnings estimates for 2011: $4.58 per share
Earnings estimates for 2012: $5.28 per share
Annual dividend: None.

Chipotle Mexican Grill (NYSE:CMG) operates a number of restaurants that offer high quality and affordable Mexican foods. This stock has been a market leader but the price to earnings ratio of about 42, so much higher than almost any other stock in this market that I can't even get close to considering a buy. This stock dropped to about $46 round January of 2009. Based on 2011 earnings estimates, a $46 stock price would give these shares a price to earnings ratio of about 7. I think this stock should be avoided at the very lofty levels it trades at now.

Current share price: $305.50

The 52-week range is $161.13 to $337.32

Earnings estimates for 2011: $6.82 per share
Earnings estimates for 2012: $8.64 per share
Annual dividend: None.
iShares MSCI Emerging Markets Index (NYSEARCA:EEM) is an exchange traded fund based on emerging market stocks. This stock dipped to about $20 at the 2009 lows. If it gets to that level again or lower, I would be buying because the emerging markets are likely to outperform debt heavy countries like the U.S. and Europe.
Current share price: $41.56

The 52-week range is $36.76 to $50.43
Earnings estimates for 2011: n/a
Earnings estimates for 2012: n/a
Annual dividend: None.

Amazon.com (NASDAQ:AMZN) is a leading online retailer that has grown into more than books. Amazon is involved in video streaming, cloud computing, online deals similar to Groupon (NASDAQ:GRPN), and more. This stock traded for about $42 per share during the 2008-09 lows. This is another stock that trades at a very high price to earnings ratio and it could be in for a sharp decline, if the economy weakens further.

Current share price: $210

The 52-week range is $122.25 to $227.45
Earnings estimates for 2011: $2 per share
Earnings estimates for 2012: $3.25 per share
Annual dividend: None.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.