Procter & Gamble
Last seen trading at $82.80, Procter & Gamble (NYSE: PG) had a consensus analyst upside of $92.00, which left an implied upside of 11.1%, and that is without considering the 3.2% dividend yield. The company has been restructuring and paring its brands, but it is still valued at 19.5 times forward earnings.
Procter & Gamble has been a key dividend payer, raising the dividend for over 50 years now. One issue is that it has faced harder overseas sales comps due to that strong dollar, and it seems hard to imagine that the company can shrink its brands back into a growth company. Still, this remains quite friendly to shareholders, and maybe its endless list of brands should just speak for itself.
The 52-week range is $74.46 to $90.33. Having a market cap of $222 billion makes it larger than its top three consumer products peers in the United States combined.
UnitedHealth Group Inc. (NYSE: UNH) was trading at $157.25, and the consensus price target of $176.05 leaves implied upside of more than 11.9%, before considering its 1.5% dividend yield. The largest insurer of them all is valued at 17 times expected earnings.
Being a health insurer under Obamacare turned out to be fine for UnitedHealth. Now it has vacated most exchange operations and is focused on the group market and other value-added opportunities. How the health insurer will be treated under a regime where Obamacare gets dismantled remains to be seen, but even the lowest analyst price target of them all is barely $2 lower than the current share price. Just keep in mind that UnitedHealth shares have already had a massive run of 35% so far in 2016.
UnitedHealth has a market cap of $150 billion and a 52-week range of $107.51 to $162.52.
Last seen trading at $77.32, Visa Inc. (NYSE: V) has a consensus price target of $93.70. That would suggest upside of 21.2%, before considering its dividend yield of just under 1%. Visa may be well off of its highs, but it is still valued at over 19.5 times forward earnings.
Many investors consider Visa a financial powerhouse as it is a newer Dow component. It is actually a platform provider, and it has grown and has massive room to boost its weak dividend. Still, investors have noticed that everyone under the sun wants to compete in payment technology, and that has to be weighing somewhat on Visa’s dominance. If analysts are right, then they have oversold Visa as its shares are basically flat in 2016. Just don’t ignore that analysts often overstay their welcome when it comes to keeping bullish price targets.
Visa has a 52-week trading range of $66.12 to $83.96. Its market cap is $163 billion.
Look for an update with more formal 2017 targets into the end of 2016 and start of 2017. The formal bull-bear case for 2017 does not yet look like it would be DJIA 22,000, but it is looking north of 20,000 as of the start of December.
Also, for a relative value between these Dow stocks and the S&P 500 Index: The S&P 500 was last seen trading at 17.3 times on a next 12 month basis, or at 18.7 times on 2016 estimated EPS of $117.15 and 16.7 times on 2017 estimated EPS of $131.00.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.