Do you want to stand on the shoulders of giants by investing in mega cap companies? Do you look for companies with low debt? We ran a screen you might be interested in.
The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.
We first looked for stocks that operate with little to no debt (D/E Ratio<.3). We did not screen out any sectors or market caps.
Do you think these mega-cap stocks have a strong outlook? Use our screened list as a starting point for your own analysis.
1) Chevron Corporation (CVX)
|Industry:||Major Integrated Oil & Gas|
Chevron Corporation has a Debt/Equity Ratio of 0.08. The short interest was 0.99% as of 04/22/2012. Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment is involved in the exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and processing, transportation, storage, and marketing of natural gas, as well as holds an interest in a gas-to-liquids project.
2) Apple Inc. (AAPL)
Apple Inc. has a Debt/Equity Ratio of 0.00. The short interest was 1.04% as of 04/22/2012. Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players; and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. Its products and services include iPhone, iPad, Mac, iPod, Apple TV, the iOS and Mac OS X operating systems, iCloud, and various accessory and support offerings, as well as a range of consumer and professional software applications. The company sells its products and services to consumers, small and mid-sized business, education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers.
3) Exxon Mobil Corporation (XOM)
|Industry:||Major Integrated Oil & Gas|
Exxon Mobil Corporation has a Debt/Equity Ratio of 0.11. The short interest was 0.60% as of 04/22/2012. Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas, and manufacture of petroleum products, as well as transportation and sale of crude oil, natural gas, and petroleum products. The company manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and other specialty products. It also has interests in electric power generation facilities.
4) Microsoft Corporation (MSFT)
Microsoft Corporation has a Debt/Equity Ratio of 0.17. The short interest was 0.90% as of 04/22/2012. Microsoft Corporation develops, licenses, and supports a range of software products and services for various computing devices worldwide. The company's Windows & Windows Live Division segment offers PC operating system that primarily includes Windows 7 and Windows Vista operating systems; Windows live suite of applications and Web services; and Microsoft PC hardware products. Its Microsoft's Server and Tools segment provides Windows Server operating systems, Windows Azure, Microsoft SQL Server, SQL Azure, Windows Intune, Windows Embedded, Visual Studio, Silverlight, system center products, Microsoft consulting services, and product support services.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.