Are you looking for large-cap companies that still have room to grow? In search of attractive dividend stocks? Do you prefer investing in stocks that analysts have weighed in on? Do you prefer companies with strong profits? For ideas on where to look, we ran a screen you may be interested in.
Return on Assets (ROA) illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.
We first looked for large cap dividend stocks. We then screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). From here, we then looked for companies that have strong profitability relative to their asset base (ROA [TTM]>10%)(1-year fiscal EPS growth rate>10%). We did not screen out any sectors.
Do you think these large-cap stocks have more value to price in? Use this list as a starting-off point for your own analysis.
1) Lorillard, Inc. (LO)
| Sector: | Consumer Goods |
| Industry: | Cigarettes |
| Market Cap: | $16.47B |
| Beta: | 0.43 |
Lorillard, Inc. has a Dividend Yield of 4.91% and Payout Ratio of 67.74% and Analysts' Rating of 2.50 and Return on Assets of 31.44% and Earnings Per Share Growth Rate of 17.82%. The short interest was 3.50% as of 05/21/2012. Lorillard, Inc., through its subsidiaries, manufactures and sells cigarettes in the United States. It markets approximately 43 product offerings in various brand names, including Newport, Kent, True, Maverick, and Old Gold. The company sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies.
2) United Parcel Service, Inc. (UPS)
| Sector: | Services |
| Industry: | Air Delivery & Freight Services |
| Market Cap: | $71.62B |
| Beta: | 0.84 |
United Parcel Service, Inc. has a Dividend Yield of 3.05% and Payout Ratio of 54.49% and Analysts' Rating of 2.00 and Return on Assets of 11.02% and Earnings Per Share Growth Rate of 15.34%. The short interest was 1.80% as of 05/21/2012. United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally.
3) Philip Morris International, Inc. (PM)
| Sector: | Consumer Goods |
| Industry: | Cigarettes |
| Market Cap: | $144.53B |
| Beta: | 0.86 |
Philip Morris International, Inc. has a Dividend Yield of 3.63% and Payout Ratio of 58.57% and Analysts' Rating of 2.30 and Return on Assets of 25.36% and Earnings Per Share Growth Rate of 23.58%. The short interest was 0.53% as of 05/21/2012. Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products. Its portfolio of international and local brands include Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White.
The company's local brands comprise Sampoerna A, Dji Sam Soe, and Sampoerna Kretek in Indonesia; Fortune, Champion, and Hope in the Philippines; Diana in Italy; Optima and Apollo-Soyuz in Russia; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia.
4) Bristol-Myers Squibb Company (BMY)
| Sector: | Healthcare |
| Industry: | Drug Manufacturers - Major |
| Market Cap: | $55.25B |
| Beta: | 0.45 |
Bristol-Myers Squibb Company has a Dividend Yield of 4.16% and Payout Ratio of 59.82% and Analysts' Rating of 2.30 and Return on Assets of 16.99% and Earnings Per Share Growth Rate of 20.47%. The short interest was 1.89% as of 05/21/2012. Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide.
The company's principal products include PLAVIX for protection against fatal or non-fatal heart attack or stroke; AVAPRO/AVALIDE for the treatment of hypertension and diabetic nephropathy; ELIQUIS to prevent and treat venous thromboembolic disorders and stroke prevention in atrial fibrillation; ABILIFY, an agent for adult patients with schizophrenia, bipolar mania disorder, and depressive disorder; and REYATAZ for the treatment of HIV.
The company's principal products also comprise SUSTIVA for the treatment of HIV; BARACLUDE, an inhibitor of hepatitis B virus; ERBITUX to target and block the epidermal growth factor receptor; SPRYCEL for treatment of chronic myeloid leukemia in adults; YERVOY to treat metastatic melanoma; ORENCIA to treat moderate to severe rheumatoid arthritis in adults; NULOJIX to prevent solid organ transplant rejection; and ONGLYZA for the treatment of type 2 diabetes.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
