Home Depot Inc. (NYSE: HD) was a surprise to see on the list, but its return on equity was listed as 56.4% by Merrill Lynch — more than double that of rival Lowe’s — and FINVIZ even had a higher ROE screen. Home Depot’s market cap is $144 billion, and its yield is north of 2%. It is also a Dow Jones Industrial Average stock. Its shares were trading at $115.10, with a consensus price target of $141.57 and a 52-week range of $92.17 to $135.47. Merrill Lynch’s price objective for Home Depot is almost 10% above the consensus at $155.00.
Hershey Co. (NYSE: HSY) is a company that many investors forget about, but every kid and adult in the world can probably recognize what a Hershey bar or Kiss is. Hershey’s ROE was over 81% by the Merrill Lynch data and was 47% according to FINVIZ. The company has a $14 billion market cap and a yield of almost 2.6%. Shares of Hershey were at $90.74, compared to a consensus price target of $91.00 and a 52-week range of $82.41 to $107.57. Merrill Lynch has a $95.00 price objective on Hershey.
McDonald’s Corp. (NYSE: MCD) has been a turnaround stock that went from being a troubled stock to a darling stock again. Now we have to see if it can continue. Still, it is a highly defensive stock, with a $107 billion market cap and a yield of about 3%. Merrill Lynch showed its ROE at over 43%, and FINVIZ was at 42%. McDonald’s shares were trading at $117.50, with a consensus price target of $126.00 and a 52-week range of $87.50 to $124.83. Merrill Lynch’s price objective is slightly above the consensus at $130.00.
3M Co. (NYSE: MMM) had a ROE of 40.1% per Merrill Lynch and 37.9% per FINVIZ. The stock has recovered handily from its lows and its yield is now closer to 2.7%, with a $95 billion market cap. Shares of 3M were trading at $154.24, with a consensus analyst target of $159.87 and a 52-week range of $134.00 to $170.50. Merrill Lynch’s price objective of $178.00 is more than 10% above the consensus price target.
PepsiCo Inc. (NYSE: PEP) was shown by Merrill Lynch as having a 45.2% ROE, and FINVIZ had it at 31.9%. Its $143 billion market cap comes with a dividend yield of closer to 2.9%. Shares were last seen trading at $98.21, with a consensus price target of $105.43 (right in line with the $105 price objective from Merrill Lynch) and a 52-week range of $76.48 to $103.44.
General Dynamics Corp. (NYSE: GD) made the 25% ROE screen barely at both Merrill Lynch and FINVIZ, at 26.3% and 26.8%, respectively. Its market cap is nearly $42 billion, and it comes with a 2.1% dividend yield. Shares of General Dynamics were at $133.52, with a consensus price target of $159.69 and a 52-week range of $121.61 to $153.76. Merrill Lynch’s price objective is over $10 above the consensus at $170.00.
Honeywell International Inc. (NYSE: HON) also snuck in on the screen, with Merrill Lynch pointing to ROE of 26.6% versus 26.4% at FINVIZ. Honeywell has a $79 billion market cap and a 2.3% dividend yield. Its shares were recently trading at $103.61. The consensus analyst target is $114.81, and the 52-week range is $87.00 to $107.41. Merrill Lynch’s $116.00 price objective is just barely above the consensus analyst target.