Dow Names Offering More Value Now Than At Start of Bull

Below we highlight the 30 Dow stocks sorted by percent change year to date. INTC is down the most at -28.32%. INTC is followed by AA (-21%), C (-18%) and AXP (-17%).

We also provide each stock's current P/E ratio and dividend yield as well as where these two fundamental data points stood at the start of the bull market on 10/9/02. Stocks highlighted in yellow have lower P/E ratios and higher dividend yields than they had in October 2002. INTC's P/E is currently 16.47 and it yields 2.67%. (Wait a minute, INTC yields 2.67%?!)

At the start of the bull market, INTC's P/E was 26.92 and yielded just 0.59%. Other companies whose P/E ratios are down big since 10/9/02 are AA, DIS, MMM, XOM, KO, WMT, PFE and JNJ.

Companies whose dividend yields are much higher than the start of the bull market are INTC, C, MCD, HD and PFE.

Interestingly, MO is a stock that many people expect to hold up well in the coming months. However, MO has seen its P/E ratio go from 5.92 at the start of the bull to 16.22 at the moment. Its dividend yield has decreased from 8.66% to 3.97%. While MO is a defensive name, its current valuation is not nearly as attractive as it was at the end of the last bear.

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Comments

[stckpkr7000:]

Your article makes sense at first glance, however earnings are coming down as will their FORWARD pe ratios. The same arguement was made for the builders in 2005. Lets examine the true earnings going forward to get an idea of true forward valuation. Risk is still getting priced into the markets as recession is here and a nasty bear to boot.

2008 Jan 20 09:36 AM

[Toto-13:]

Another article telling me to get a spoon when I get hungry.
Rob,
WallastonInvestments.c...

2008 Jan 21 10:42 PM

[BillyWade:]

Interesting read thanks. I agree to an extent that some sectors are in better shape but the market seems to go lower than you expect it will and calling the bottom is tough. I think it is a healthy correction to the bubbles the fancy investment bankers get us into.

Recession is not depression. The more we put it off the bigger the pain. So lets get back to equalibrium whatever that might be and let the speculators dangle in the wind from the trees from which they look down on the commons with mere BA degrees from non ivy league schools....

2008 Jan 22 12:16 PM