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Old and currently out of favor is never a great combination when it comes to large cap stocks. Still, that doesn't always mean it's the last chapter in a company's story book. These companies didn't get to be their size by twiddling their thumbs, and more often than not, they've accumulated a large amount of cash as well. That means they could easily make an acquisition, buy back stock, or take some other form of action in order to regain favor in the investment community. In our view, it never hurts to review out of favor large cap stocks because more often than not they'll deploy cash on hand in some form in order to push the stock price higher.

The Current ratio is a liquidity ratio used to determine a firm’s financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A firm that has a current ratio of one or less is generally a liquidity red flag. This doesn’t mean the firm will go bankrupt tomorrow, but it also doesn’t bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

We first looked for large cap stocks that have underperformed the SandP 500 over the last month. From this narrowed list of candidates we then looked for companies have a substantial amount of cash on hand (Current Ratio>2) that they could deploy. We did not screen out any sectors.

The list is ranked from highest to lowest by the Current Ratio:

1. Amgen Inc. (AMGN)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$51,472M

Beta

0.62

The company discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses. AMGN has a Current ratio of 5.56 and has increased by only 1.51% in the last month. The short interest was 2.30% as of 10/14/2011.

2. Allergan, Inc. (AGN)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$25,777M

Beta

0.62

The company discovers, develops, and commercializes specialty pharmaceutical, medical device, and over-the-counter products. AGN has a Current ratio of 3.90 and has only increased by 3.83% in the last month. The short interest was 2.30% as of 10/14/2011.

3. Cerner Corporation. (CERN)

Sector

Technology

Industry

Health Information Services

Market Cap

$10,825M

Beta

0.66

The company designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, and content solutions for healthcare organizations and consumers. CERN has a Current ratio of 3.77 and has fallen by 1.94% in the last month. The short interest was N/A as of 10/14/2011.

4. Celgene Corporation. (CELG)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$28,474M

Beta

0.80

The company discovers, develops, and commercializes various therapies to treat cancer and immune-inflammatory related diseases. CELG has a Current ratio of 3.50 and has increased by only 3.95% in the last month. The short interest was 2.10% as of 10/14/2011.

5. Becton Dickinson and Co. (BDX)

Sector

Healthcare

Industry

Medical Instruments and Supplies

Market Cap

$15,739M

Beta

0.59

The company develops, manufactures, and sells medical devices, instrument systems, and reagents worldwide. BDX has a Current ratio of 3.06 and has fallen by .47% in the last month. The short interest was 2.60% as of 10/14/2011.

6. Kinross Gold Corporation. (KGC)

Sector

Basic Materials

Industry

Gold

Market Cap

$16,524M

Beta

0.31

The company engages in mining and processing gold ores. KGC has a Current ratio of 2.75 and has only increased by 6.62% in the last month. The short interest was N/A as of 10/14/2011.

7. Thermo Fisher Scientific Inc. (TMO)

Sector

Healthcare

Industry

Medical Instruments and Supplies

Market Cap

$19,189M

Beta

0.51

The company provides analytical instruments, equipment, reagents and consumables, software, and services for research, manufacture, analysis, discovery, and diagnostics. TMO has a Current ratio of 2.75 and has fallen by 3.38% in the last month. The short interest was N/A as of 10/14/2011.

8. Goodrich Corporation. (GR)

Sector

Industrials

Industry

Aerospace and Defense

Market Cap

$15,361M

Beta

0.60

The company supplies aerospace components, systems, and services primarily in the United States, Canada, Europe, and the Asia Pacific. GR has a Current ratio of 2.55 and has increased only by 1.92% in the last month. The short interest was N/A as of 10/14/2011.

9. Johnson and Johnson. (JNJ)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$176,314M

Beta

0.56

The company engages in the research and development, manufacture, and sale of various products in the health care field. JNJ has a Current ratio of 2.51 and has fallen by 3.14% in the last month. The short interest was N/A as of 10/14/2011.

10. NTT DoCoMo, Inc. (DCM)

Sector

Commun Services

Industry

Telecom Services

Market Cap

$73,481M

Beta

0.53

The company provides wireless telecommunications services, packet communications services, and satellite mobile communications services in Japan. DCM has a Current ratio of 2.25 and has fallen by 4.74% in the last month. The short interest was 1.50% as of 10/14/2011.

We hope this list helps investors as they do their own due diligence and research on large cap stocks.

*The company profiles were sourced from Finviz.

Source: 10 Underperforming, Large Cap Stocks With Plenty Of Cash