Top Five All-Around Value Stocks
08/21/07 - 01:18 PM EDT
TheStreet.com Ratings Staff
Paccar has a few potential risks. Any significant economic slowdown could result in a reduction in automotive production, and that could have an adverse effect on the company's business.
Telefonos de Mexico(TFONY Quote - Cramer on TFONY - Stock Picks) provides fixed-line telephony services in Mexico, the U.S. and numerous countries in Latin America. Its strengths are seen in its largely solid financial position with reasonable debt levels, expanding profit margins, revenue growth and a pattern of EPS growth over the past two years that is likely to continue. In the year ended August 2, Telefonos' stock price increased by 42.73%, and while almost any stock can fall in a broad market decline, it should continue to move higher. These strengths outweigh the company's weak operating cash flow.
Railroad operator Union Pacific(UNP Quote - Cramer on UNP - Stock Picks) has chugged along with a buy rating since July 2005. The company recently joined with Norfolk Southern Railway(NSC Quote - Cramer on NSC - Stock Picks) to launch a new service that will add train capacity and expand rail service between Los Angeles and the Southeast. It also announced plans to spend $3.20 billion on capital expenditures in fiscal 2007 to improve infrastructure in Wyoming's Powder River Basin (the largest coal-producing region in the U.S.) and double-track the Sunset Corridor between southern California and Texas. The company saw record financial performance in the second quarter of fiscal 2007, driven by strong revenue performance across four of its six segments and net income increases aided by margin expansion, higher other income and a lower effective tax rate. Because Union Pacific's business is cyclical in nature, it is quite sensitive to changes in economic conditions. Severe weather conditions, currency volatility and higher-than-expected fuel prices could have an adverse impact on its performance.
RSS
