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 again have taken a beating. Needless to say, 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. While the U.S. economy is slowly opening up, getting to where it was prior to the coronavirus pandemic could take a very long time.
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. Investors that did that in 2008 and 2009 absolutely killed it over the next few years.
These five top companies made the cut, and they all are rated Buy now by top Wall Street firms.
This company has its major hub in Dallas, where business should continue to boom as we open back up from the lockdown. American Airlines Group Inc. (NASDAQ: AAL) is the holding company for American Airlines.
Together with wholly owned and third-party regional carriers operating as American Eagle and US Airways Express, the airlines operate an average of nearly 6,700 flights per day to 350 destinations in over 50 countries from its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix and Washington, D.C.
Note that Warren Buffet is no longer a fan, as Berkshire Hathaway recently dumped its shares in airline stocks.
Investors receive a 1.32% dividend. Deutsche Bank has a price target of $18, while the Wall Street consensus target is higher at $37.35. American Airlines stock closed at $9.25 a share on Wednesday.
If any stock has taken a beating over the past three years, it has been this legendary corporation. 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.
In 2018, 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. General Electric is still one of the most valuable brands in the world.
The massive restructuring and debt reduction plans that have been announced come after years of acquisitions and changes in the core business at GE, 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 receive just a 0.67% dividend. The BofA Securities $11 price target compares to the consensus target of $11.61. General Electric stock ended Wednesday’s trading at $5.98.