No, not this Fab Four
Those who keep cool heads while all around them are panicking make money in periods of market turmoil. Thus, today has brought out bargain hunters into the shell-shocked stock market.
What are today’s value buys? One question to ask is whether any stocks are above the country’s rating, which as we all know, is now rated AA+ according to Standard and Poor (though not yet Fitch and Moody’s).
From over 60 U.S Corporations in the 1980′s that held the top AAA rating, only 4 remain today.
The S&P agency says that although company ratings do not generally exceed that of their host countries, they do not expect to downgrade these four companies in the forseeable future.
So who are these four top performers?
1. Microsoft (MSFT)
Microsoft is a global software behemoth with 90,000 employees. They sell the top operating system in the world together with multiple other top-selling software and hardware product offerings. It is extremely profitable, with a cash mountain of over $45 billion and net profits of $23.2 billion on sales of $69.9 billion last year. What more can you say? Today’s stock price is $24.20.
2. Johnson and Johnson
J&J sell a large variety of healthcare and personal care products globally with its three business segments being Consumer, Pharmaceutical and Medical Devices & Diagnostics. It invests heavily in research and development and is extremely profitable. It has about $25 billion in cash and recorded net profits of $13.3 billion on sales of $61.6 billion last year. Today’s stock price is $60.20.
3. Automatic Data Processing
ADP provides a variety of business outsourcing solutions to global clients. While their payroll processing is their best known division, they also offer human resource, tax and benefits administration solutions. It has about $1.3 billion in cash and recorded net profits of $1.3 billion on sales of $9.9 billion last year. Today’s stock price is $46.22.
4. Exxon Mobil
The list wold not be complete without one of the oil majors. Exxon Mobil has oil operations globally, comprising exploration and production of natural gas and crude oil. It extracts, refines and sells crude oil worldwide and has benefited from recent tightening of oil supplies. It had massive revenues of $341.6 billion last year, holds just over $10 billion in cash and recorded net profits of $30.5 billion on sales of $42.3 billion last year
So there you have it. These are the ‘fab four‘ of all U.S.-based stocks that still have a AAA rating, a notch higher than their host country in the eyes of Standard and Poor. Do consult your financial adviser before you purchase any of these stocks.
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