Did you know the stock market is on sale?
That share prices are in freefall?
That you can pick up stocks in all sorts of big-name companies?
It’s true.
These companies are HUGE, Household names.
They are bankable. Stocks to buy and hold.
That’s because fundamental analysis tells us these companies simply will not “go to zero.”
These companies are too BIG. They are multi-million-dollar corporations.
But most importantly, they are FUNDAMENTALLY STRONG. Built upon sound business models.
They are ingrained deep within society, providing a daily need, and solving everyday problems.
They are indispensable. We cannot do without them.
A company’s fundamentals is one of the most important factors when considering whether to invest in that company.
You can probably guess who some of them are.
Now you may think, “I have no chance of ever getting a stake in the likes of Google, Amazon, Apple, Microsoft, and the rest…”
Not so.
Because even though these mighty corporations can command good share prices… there are times when their price drops.
Making them affordable for experienced investors and also everyday people.
The point is – even when their price CRASHES, we know they WILL BOUNCE BACK.
They usually always do because they are too big and strong not to.
So here for you, are 7 stocks with household name brands we believe are fundamentally strong, which you may want to get your hands on while they are on sale.
1.
GOOGLE (GOOG): down -36%
ATH $151.55
Yes, believe it or not, you can get a share of Google! The mega internet company that 4.3 billion around the world use every day.
Google, under its parent company Alphabet, has a market cap valuation of $1.257 Trillion.
A share of Google is a snip at around the $100 mark per share (as of 24th November 2022).
It is no surprise Google is our #1 pick. Google has a positive economic outlook with a growth of 10% EPS over the next 5 years. A fundamentally strong company, Google will be around forever (or at least as long as there is the world wide web).
Background
Google was founded in 1998, by PhD students Larry Page and Sergey Brin at California’s Stanford University. It went from being a research project into an internet search engine under the name BackRub.
Page and Brin attracted huge investments and changed the name to Google. The company went public in 2004.
Google comes from the word “googol,” which is a very large number – i.e. the digit 1 followed by one hundred zeroes.
In 2015, Google was reorganized under a parent company, Alphabet Inc.
Google now offers Gmail, Cloud, Chrome, YouTube, Android, Drive, Translate, Photos, smartphone Pixel, Fitbit, and Google Assistant AI, among others.
Google and YouTube are the two most visited websites in the world.
Google is the largest search engine, plus a mapping and navigation application.
Google is ranked second by Forbes on its list of most valuable brands.
Alphabet is one of the Big Five American information technology companies, alongside Amazon, Apple, Meta (Facebook), and Microsoft.
Alphabet surpassed $200 billion in revenue for the first time in 2021. Shares soared more than 65%. It also set aside $50 billion to buy back shares in a 20-1 stock split to encourage investment. Enjoyed a 50% revenue increase with Google Cloud.
2.
AMAZON (AMZN): down -46%
ATH $185.88
Another HUGE internet presence, Amazon has a market cap valuation of $950.79 Billion as of November 2022.
Jeff Bezos, the man who founded Amazon is one of the richest men in the world.
Similar to Google, Amazon is simply a bedrock of modern civilization. It is not going anywhere but up as it is fundamentally strong.
Amazon is the market leader and despite the pandemic and the challenging years of 2020 and 2021, it grew its EPS from 1.17 to 3.30 in 2021. The outlook looks extremely positive for the coming years as well.
Background
Bezos launched Amazon from his Bellevue garage in 1994. Initially, it was an online bookselling company. It is now one of the largest online retailers and is known as “The Everything Store.”
Amazon also focuses on providing e-commerce, cloud computing, digital streaming and artificial intelligence (AI) services.
Bezos stepped down as CEO in 2021.
Amazon is one of the world’s most valuable brands, along with the other four information technology companies, Alphabet (Google), Apple, Meta (Facebook), and Microsoft.
It extended into physical retail when it bought Whole Foods Market for $13.4 billion and is known for its reinvestment of profits into capital expenditures.
As of 2021, it is the world’s largest online retailer and marketplace and surpassed Walmart as the world’s largest retailer outside of China.
It is the second-largest private employer in the United States and has over 200 million subscribers to its Amazon Prime service worldwide.
It publishes books, film and television content, and consumer electronics. It produces Kindle, Echo devices, Fire tablets, and TVs.
In 2021, Amazon grew its workforce by 310,000 with an increased minimum wage from $15 to $18 per hour. Acquired Hollywood studio MGM for $8.5 billion.
Overall grew revenue by more than 21% to $33.3 billion in profits, a 56.4% increase from the year before.
3.
APPLE (AAPL): down -18%
ATH $182.88
Apple. Steve Jobs. Their names are known the world over. Founded nearly 50 years ago, Apple is still going strong!
In fact, as of November 2022, Apple has a market cap valuation of $2.389 Trillion.
Again, like Amazon and Google, Apple is gargantuan, a fundamentally sound company.
Apple is at the forefront of technology and is also adapting to new technologies such as blockchain. It has a profit margin of 25.30% even though it is a global company with thousands of employees.
Background
It may surprise some, but Apple was founded way back in 1976 as Apple Computer Company by Steve Jobs, Steve Wozniak, and Ronald Wayne.
Their first product was Wozniak’s Apple I personal computer. The following Apple II, was one of the first mass-produced microcomputers and became a best seller.
Apple went public in 1980 with immediate success. Launched the first Apple Macintosh in 1984. However, a year later its product pricing and internal issues saw Wozniak leave the company and the resignation of Jobs. Jobs founded NeXT, taking some Apple employees with him.
Approaching bankruptcy, Apple bought NeXT in 1997. Jobs was enticed back to the company. He made it profitable again with the iMac, iPod, iPhone, and iPad.
In 2011 Jobs resigned due to health reasons. He died two months later.
In 2018, Apple became the first publicly traded U.S. company to be valued at over $1 trillion. Than $2 trillion in August 2020.
Despite having to switch strategies during COVID and manufacture its own microchips in-house after problems in China, Apple finished 2021 with an impressive $94 billion in profits. This trumped all other US companies.
Plus it brought in $37.4 billion from its Mac computer sales and topped the Trillion Dollar Club in January 2022 with a market valuation of $3 trillion, though it slipped back to £2.7 trillion in May.
4.
MICROSOFT (MSFT): down -29%
ATH $349.67
Like Bezos and Jobs, Bill Gates is instantly recognizable by name and similarly just as rich with a net worth of nearly $105 billion.
Microsoft has been around as long as Apple and is still going strong. Still growing as a company in fact.
That means it too is fundamentally strong.
Microsoft has a return on equity of 42.3% which means it is financially sound. It also has a low debt/equity ratio of 0.36 which means it is very likely to sustain tough times.
Background
Microsoft was founded by Bill Gates and Paul Allen in 1975. It’s first computer product was the Altair 8800 BASIC interpreter.
By the mid-80s, Microsoft was dominating the personal computer market with its MS-DOS, followed by Windows.
1986 saw the company’s initial public offering (IPO). The resulting rise in share price created three billionaires. Approximately 12,000 employees became millionaires.
Best known for Windows, Microsoft Office suite, Internet Explorer, Edge web browsers, Xbox video game consoles and the Microsoft Surface personal computers.
It is one of the Big Five American information technology companies, alongside Alphabet (Google), Amazon, Apple, and Meta (Facebook).
Has made a number of corporate acquisitions: Skype, $8.5 billion (2011); Nokia $5.4 billion (2014); LinkedIn, $26.2 billion (2016).
2012 – saw 38% increase in profits to $61 billion. Revenue rose 17.5% to $168 billion. Won a $22 billion contract to supply the US Army with augmented reality headsets.
Took its place in stock market record books as only the second US company, after Apple, to reach a $2 trillion valuation after hitting $1 trillion in 2019.
As of 2022, Microsoft has the fourth-highest global brand valuation.
5.
TESLA (TSLA): down -52%
ATH $414.50
Elon Musk is one of the most famous names on the planet. He has recently bought social media giant Twitter for a cool $44 billion.
And when someone says Tesla, you immediately think… Elon Musk. The two go hand-in-hand.
Musk has been Tesla’s CEO since 2008. The company is at the forefront of electric vehicle development and manufacture.
And with world governments working with the World Health Organisation to push for zero carbon across the planet, electric vehicles will be the future.
Although down now at around $530 billion, Tesla did hit the news as a $1 trillion corporation in the spring of 2022.
That means it is seriously strong fundamentally.
Tesla has had incredible growth over the last couple of years and has outperformed all the other US car manufacturers put together. It has 0 debt and is projected to grow 48% / year over the next 5 years.
Background
Tesla, named after Serbian-American inventor and electrical engineer Nikola Tesla (1856-1943), was incorporated in July 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors.
Elon Musk became the largest shareholder in 2004 with a $6.5 million investment. He has been CEO since 2008.
Tesla designs and manufactures electric vehicles, battery energy storage, solar panels and solar roof tiles, and related products and services.
In 2009, Tesla began production of its first car model, the Roadster. Its Model 3 sedan (2017) is the all-time bestselling plug-in electric car worldwide. In 2021, it was the first electric car to sell 1 million units globally.
Significant expansion into European and Chinese markets.
In 2021, Tesla’s global sales were 936,222 cars. An 87% increase over the previous year. As of August 2022, total sales totaled 3 million.
In October 2021, Tesla’s market capitalization reached $1 trillion, the sixth company to do so in U.S. history.
Incredible rise up the 2021 rankings of the Fortune 500 list of top companies climbing 35 places.
6.
JOHNSON & JOHNSON (JNJ): down -9%
ATH $186.69
Another household name, another fundamentally strong company.
Made famous by its Johnson Baby Powder, there is a strong chance you will have one or more other Johnson & Johnson health products in your home.
The fact that Johnson’s Baby Powder was available back in 1894 tells you just how fundamentally strong this company is!
J&J has a healthy 19.90% profit margin and is the market leader and steady despite big drops in the market.
Background
In 1886, Robert Wood Johnson joined his brothers, James Wood Johnson and Edward Mead Johnson, and created a line of ready-to-use sterile surgical dressings.
They founded Johnson & Johnson (J&J) in 1886 with 14 employees.
They added household products and medical guides to their product line. Those products initially featured a logo that resembled the signature of James Wood Johnson, very similar to the current logo.
By 1894, J&J had more than 400 employees and 14 buildings. That year it launched Johnson’s Baby Powder.
J&J is one of the world’s most valuable companies with 250 subsidiary companies, operating in 60 countries and sales in more than 175 countries.
J&J’s brands include household names Band-Aid, Neutrogena skin and beauty products, Clean & Clear facial wash, and Acuvue contact lenses.
J&J’s pharmaceutical arm is Janssen Pharmaceuticals. Janssen developed a Covid vaccination in wake of the pandemic. 19 million single-shot doses were distributed in 2022 in the US, and millions more worldwide.
J&J had worldwide sales of $93.8 billion in 2021.
Ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations.
By 2023, J&J will spin off its consumer products line as a separate business.
7.
PROCTER & GAMBLE (PG): down -14%
ATH $165.35
Similar to Johnson & Johnson, Procter & Gamble (P&G) are a name 99% of consumers will have heard of.
And like Johnson & Johnson, P&G has been in business since 1837!
By now you will know what that means
Same as with J&J (JNJ), P&G is a market leader in its field, has low debt and despite being one of the biggest, has a projected growth of 9.5% / year over the next 5 years. A secure and stable investment.
Background
Procter & Gamble (P&G) is Ohio-based and founded in 1837 by Irish emigrants William Procter and James Gamble. Procter was a candle maker, Gamble a soap maker.
P&G is the biggest consumer goods company in the world. Makes and sells dozens of household name products: Gillette razors, Crest toothpaste, Old Spice deodorant, and Tide laundry detergent, to name a few.
In 1858–1859, sales reached $1 million, with 80 employees. P&G won contracts to supply the Union Army with soap and candles during the American Civil War.
1921, P&G had become a major international corporation. Its annual advertising budget hit $1 million.
In the early days, P&G advertised its products on the new medium of radio. From 1932 it was one of the biggest sponsors of daytime serials, hence the nickname ‘soap operas.’
In 2014, P&G recorded $83.1 billion in sales.
Currently has 65 brands, which produce 95% of the company’s profits.
Brought in $76.1 billion in 2021.
Conclusion
As you will have noticed, there is one thing that these 7 companies have in common – phenomenal success.
But more than that, from an investor’s point of view, all these companies have solid foundations.
They are fundamentally strong.
And at these knock-down sales prices, we say they are simply too good to ignore.
Maybe you think so too?
To find out more about Investment Mastery strategies and fundamental analysis, subscribe to IM Insider.
IM Insider is FREE and opens up a wide range of investor/trader resources, courses, educational forums and a thriving community, no matter your level of experience. You can subscribe easily from here
