Despite a huge rally off the March bottom that has seen the U.S. indexes hit all-time highs, shares of many of the top companies that investors are very familiar with have taken a beating. The ones that have been beaten down the most are in sectors that are struggling the most with the temporary new normal rules that are still in place to varying degrees around the country.
We screened our 24/7 Wall St. research database looking for well-known 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. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
Five top stocks made the cut, and all are rated Buy now by top Wall Street firms. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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, and it remains committed to positioning itself well within the evolving auto industry through balanced investments across electrification, autonomy and mobility services.
In the spring, Ford sold $8 billion of unsecured bonds in three parts. The longest maturity, a 10-year security, will yield 9.625%, after initially being marketed around 11%, according to a person with knowledge of the matter. It is the company’s first debt offering since losing its investment-grade ratings on March 25, becoming the largest fallen angel of the current downgrade cycle.
BofA Securities has a $9 price target on the venerable car company. The Wall Street consensus target is $7.66, and Ford stock has traded mostly below $7 for the past month.
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 0.65% dividend. The BofA Securities price target is $11, and the consensus target is $7.75. General Electric stock dipped below $6 a share on Friday.