It happened in 2008 and 2009, and despite a huge rally off the bottom, many of the top companies that investors are very familiar with have taken a beating. Needless to say, some of those that have been beaten down the most are in sectors that are struggling the most with the temporary new normal of shelter-in-place.
We screened our 24/7 Wall St. research database looking for well-known, blue-chip companies that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Long-term investors who did that in 2008 and 2009 absolutely killed it over the next few years. Five top companies made our cut, and all are rated Buy now by top Wall Street firms.
This remains a solid value play now, and demand could jump when the coronavirus issues have passed. 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. Ford is among the car brands with the most loyal customers.
Ford also remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services. It can qualify for some backstop financing from the Federal Reserve, even though the company’s corporate debt was downgraded to Junk status on March 25.
Ford has suspended its dividend and borrowed billions of dollars from its existing credit lines, as it prepared to shut down most of its factories in North America and Europe.
Merrill Lynch has a Buy rating and a $7 price target on the venerable car giant. The Wall Street consensus target is $6.41, and Ford stock closed trading most recently at $5.37 a share.
Even during a pandemic, and surely after one, people will need tires. Goodyear Tire & Rubber Co. (NYSE: GT) engages in the development, manufacture, distribution and sale of tires. Its products include lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, earth-moving and mining equipment, industrial equipment and various other applications.
One of the world’s largest tire companies in the world, Goodyear employs about 63,000 people and manufactures its products in 47 facilities in 21 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop state-of-the-art products and services that set the technology and performance standard for the industry. It also operates approximately 1,000 retail outlets, which offer products for retail sale and provide repair and other services
The company recently announced that it will extend the full capabilities of its Commercial Total Solution to carriers of all sizes in Convoy’s Digital Freight Network. This is the first online discount program Goodyear has offered through its commercial e-commerce platform on the company’s website.
Shareholders still receive an 8.32% dividend, which could be lowered or even eliminated. Nomura’s Buy rating comes with a $14 price objective. The posted consensus target is $11.69., and the stock was last seen trading at $7.69.