Investing

How Did These Companies Make The Forbes 400 Best Companies?

Every year, Forbes puts together a list of the 400 Best Big Companies. The selections are based on a screen of 1,000 companies and take into consideration stock market returns, growth in EPS, and debt-to-equity ratios.

Some of the companies really dont’s belong:

Lowe’s. (LOW) Revenue and earning have been fairly flat the last four quarters after years of growth. Over the last year, the stock is down over 7%, more than larger rival Home Depot (HD). The S&P is up about 12% over the same period.

Sprint/Nextel. (S) The company’s five year total return is only 2.2%. Sprint’s stock has fallen almost 20% over the last year, while Verizon’s is up about 22% (VZ).

3M. (MMM) WIth its stock down 5% over the last two years, the S&P has moved up almost 20%. On a quarter-over-previous quarter basis, revenue and operating income are flat over the last year.

Texas Instruments. (TXN)  With a five year annual return of -1.6, the stock has gone up only about 5% over the same period. The S&P is up 25% over that time.

Automatic Data Processing. (ADP). The company’s stock is off almost 15% over the last five years. The last year’s quarter-over-previous-quarter for revenue and operating income is mediocre, at best.

Bed Bath and Beyond. (BBBY) The stock is down over 5% over the last two years. And, very little revenue growth in the last year.

Molex. (MOLX). The stock is price is flat over the last five years. In October, the company announced poor results and a lackluster forecast.

Analog Devices. (ADI). Stock is off 30% over five years. Over the last three months, stock has been downgraded by Bernstein, HSBC, and Robert W. Baird.

Amdocs. (DOX). Flat stock over the last five years. The company recently guided below Wall St. expectation.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.

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