Investing

5 Low-Priced Fallen Angel Blue Chips With Massive Upside Potential

Ford

This is a solid value play now, and demand could jump with a trade deal with China paving the way. Ford Motor Co. (NYSE: F) is one of the world’s largest vehicle producers, with over 6 million units manufactured and sold globally. The company has made significant progress executing on its One Ford plan and delivering best-in-class vehicles.

The company also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services.

Ford reported fourth-quarter adjusted earnings per share in line with revised estimates, although core operating results were a bit weaker than some expected. Ford continues to struggle amid a volatile global market, exacerbated by some perceived critical missteps that may partially abate later this year.

Shareholders are paid an outstanding 6.82% dividend, though that could be lowered this year. The $11 Jefferies price target on the shares compares with the $9.32 consensus target. The shares closed on Friday at $8.72.

General Electric

If any stock has taken a beating over the past two years, it has been this former industrial powerhouse. General Electric Co. (NYSE: GE) businesses are organized broadly under seven segments: Power, Renewable Energy, Energy Connections, Oil & Gas, Aviation, Healthcare, Transportation and GE Capital. The company’s products and services include power generation equipment, aircraft engines, locomotives, medical equipment, compressors and others. Over half of the business is tied to service and aftermarket support.

Last year the venerable American industrial giant got the ultimate humiliation of being removed from the Dow Jones industrial average after a stay of over 100 years.

The massive restructuring and debt reduction plans that have been announced over the past year come after years of acquisitions and changes in the core business at General Electric, and in some cases what many on Wall Street thought were ill-advised moves by the former CEO Jeff Immelt. The company’s once dependable dividend has been chopped to $0.04 a share and may be eliminated altogether at some point.

Investors in GE are paid a small 0.40% dividend. Williams Blair’s Buy rating comes with a $12 price target. The posted consensus target is $11.61, and the shares were last seen trading at $10.19.

Nokia

This telecommunications company once ruled the cell phone arena, until the advent of the smartphone in 2007. Nokia Corp. (NYSE: NOK) owns two main businesses: 1) Nokia Networks, a network infrastructure equipment supplier to global wireless and wireline operators, and 2) Technologies, its patent/IPR licensing activities.

The company reported solid fourth-quarter results with revenue and EBIT figures that came in above Wall Street estimates, while earnings per shares were in line with expectations. The 2019 guidance was lower than expected due to the uncertain timing of 5G deployments.

Many top Wall Street analysts feel that the positive sentiment for 5G and share shifts are likely to support the stock, and rival Ericsson also looks to benefit as well. We covered both of the companies this past week.

Merrill Lynch rates the shares a Buy, with a $7.50 target price, and has them on the firms US 1 list. The consensus estimate was last seen at $7.09, and the stock ended the week at $6.13 a share.

These are five top companies that most seasoned investors are well aware of and perhaps have owned shares of over the years. While they still may be fighting through some issues now, and in the coming months and years, they all appear to have avoided the dubious distinction of ending up in the Wall Street graveyard.

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