This iconic blue chip has been on a strong roll and investors may want to scale buy shares, looking for a pullback. General Electric Co. (NYSE: GE) is a highly diversified, global industrial corporation. Its businesses are organized broadly under six segments: GE Capital, Energy Infrastructure, Aviation, Healthcare, Transportation and Home & Business Solutions. Its products and services include power generation equipment, aircraft engines, locomotives, medical equipment, appliances, commercial leasing and personal finance. Wall Street analysts feel that the American giant will be a large player in the efficient energy field.
The company posted solid second-quarter numbers that were somewhat hampered by slower organic growth. GE does an estimated 52.9% of its total sales overseas, so a weaker dollar surely could help the rest of this year and into 2017. It should also be noted CEO Jeffrey Immelt recently made a large purchase of company stock.
Top analysts note that while the company’s execution story remains on track, the global macro picture could also prove to be a headwind. While some question the ability to post second-half of 2016 growth, the analysts feel it is very achievable. They also feel the company will re-accelerate cash deployment into 2017 to offset the macro environment. Plus bullish crude oil fundamentals and ongoing cost cutting measures may help to keep the stock price elevated.
GE investors receive a 2.95% dividend. The consensus price objective is at $33.71. The stock closed trading on Monday at $31.15 per share.
The fast-food giant has been hit hard since earnings were released, but it still remains a solid pick for investors seeking dividends and a degree of safety. McDonald’s Corp. (NYSE: MCD) is the world’s leading global foodservice retailer, with over 36,000 locations serving approximately 69 million customers in over 100 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business persons.
The company reported solid second-quarter results, but the U.S. store comparable sales growth of just 1.8% disappointed investors. The Merrill Lynch team noted that charges and refranchising gains make the earnings number a bit dicey, so some on Wall Street lowered their total GAAP numbers for 2016.
McDonald’s shareholders are paid a nice 3.00% dividend. The consensus price target is $130.29, and the shares closed most recently at $118.01.
Even in the event Trump loses, these top companies will remain outstanding choices for a long-term growth portfolio, but if he does win, and the Jefferies team is right that the dollar weakens against foreign currencies, they may even be better plays for 2017 and beyond.