Coca-Cola Co. (NYSE: KO) recently traded at $40.60, and the consensus price target of $46.61 generates an implied upside of 14.8%, before adding in the 3.5% dividend yield. The stock is valued at 20 times expected earnings per share.
Despite having more dependence on sugar-water beverages than rival Pepsi, the reality is that Coca-Cola has been diversifying away from its name brand for years. Its shares have done much of nothing in 2016, and it mostly has been in a $39 to $44 trading band for the past three years. With global expansion opportunities and cost containment efforts, maybe value investors will begin to focus on what may be a defensive stock with limited downside — and it has raised its dividend for more than 50 years.
Coca-Cola has a market cap of $175 billion. Its 52-week range is $39.88 to $47.13.
Recently trading at $129.72, Home Depot Inc. (NYSE: HD) has a consensus price target of $146.73 that would generate upside of close to 13.1%, before considering the dividend yield of 2.1%. The stock is valued at 18 times expected earnings for next year.
Home Depot ran into some issues after peaking in the summer, when the consumer was looking less aggressive and home improvement trends were starting to feel toppy. Some issues may continue, but if the housing market is going to be strong in 2017, then it seems hard for Home Depot to not be participating in that as it has held up better than Lowe’s so far in 2016, despite not being up much for the year.
Home Depot has a 52-week range of $109.62 to $139.00 and a market cap of $158 billion.
Shares of Intel Corp. (NASDAQ: INTC) were last seen trading at $34.38. The consensus analyst target was $39.82, implying upside of 15.8% over the next year, without even considering the 3.0% dividend yield. Intel is valued currently at only about 12 times forward earnings.
This may seem hard to imagine, but the PC market was finally of interest again. Maybe the growing demand for virtual reality, artificial intelligence and machine learning are driving it more than anything. Intel also has expanded well beyond desktops, and it is even a growing partner for many chip companies now.
The market cap is $163 billion. Shares have traded in 52-week trading range of $27.68 to $38.36.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) recently traded at $111.95, and its consensus analyst target of $126.26 would generate implied upside of 12.8%, before adding in its 2.85% dividend yield. The stock also is valued at just over 15.5 times expected 2017 earnings.
Johnson & Johnson is one of those companies that just seems to keep chugging along, growing earnings and increasing its footprint. It has been one of the Dow stocks that has raised its dividend over 50 years in a row.
It has a 52-week trading range of $94.28 to $126.07 and a market cap of $304 billion.
Shares of Nike Inc. (NYSE: NKE) were last seen at $51.75, and the consensus price target of $51.96 gave an implied upside of 21.8%. The dividend yield of 1.4% was not included in that upside on a total return basis. The stock has pulled back substantially from its highs but is still valued at 19.2 times forward earnings.
Nike is the leader in the athletic apparel market. There have been concerns that “athleisure” has peaked, and of course brands like Under Armour, Adidas and Reebok want their piece of the market. Still, the consensus is that it will grow sales to $41 billion in 2019 (from $32 billion in 2016) and that earnings per share will grow 40% over the same period. What if everyone has been too negative, with over a 15% drop in 2016?
Nike has a 52-week trading range of $49.01 to $68.19 and a market cap of $86 billion.
Given that Pfizer Inc. (NYSE: PFE) was trading at $31.64, its consensus price target of $37.76 implies upside of 19.4% for the next 12 months, before considering its 3.8% dividend yield. Shares are valued at 12 times forward earnings.
This year has been a dud for Pfizer, despite sharp gains for rival Merck. The company had been torn in long-term efforts, like whether to move or acquire overseas, deciding if the restructuring would lead to a break-up, and deciding whether to sell some assets. Then there was the endless overhang of political pricing pressure on drug prices. What if Pfizer has become too cheap versus Merck?
It has a market cap of $192 billion and a 52-week range of $28.25 to $37.39.
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