This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Where to Hide When Bank Stocks Bomb

Stocks in this article: JPM AIG YUM LO

Korzenik also likes "the low end of consumer discretionary. "We like Yum! Brands (YUM) a lot, for their domestic and international exposure," he says, and also Lorillard (LO), which also features an attractive dividend yield of 5.41%, based on a quarterly payout of $1.55 a share, and Friday's closing price of $114.57.

Shares of Yum! Brands returned 21% year-to-date through Friday's close at $69.90. Based on a quarterly payout of 33.5 cents, the shares have a dividend yield of 1.92%. The company's shares trade for 19 times the consensus 2013 EPS estimate of $3.74.

YUM operates KFC, Pizza Hut and Taco Bell. For its fiscal third-quarter ended Sept. 8, the company reported net income of $471 million, or a dollar a share, increasing from $383 million, or 80 cents a share, from the fiscal third quarter of 2011. Revenue was up 9% year-over-year, to $3.569 billion, in the fiscal third quarter.

YUM said that for its China division, same-store sales grew 6% year-over-year, while operating profit -- excluding the effect of foreign exchange -- rose 24% to $374 million.

Lorillard's stock returned 4% year-to-date, through Friday's close at $114.57. The stock was down 23% of a year-to-date intraday high of $141.07 on July 16. The cigarette manufacturer -- which includes Newport, Kent and True among its brands -- last week reported third-quarter earnings of $283 million, or $2.16 a share, increasing from $267 million, or $1.94 a share, during the third quarter of 2011. Net sales grew 2% year-over-year, to $1.661 billion in the third quarter.

Lorillard CEO Murray Kessler said the company "continued to execute against its strategic plan as it began to invest in advertising, distribution and merchandising on blu eCigs, the leading e-cigarette brand acquired earlier this year," and that "the Company expects to continue to deliver a double digit total shareholder return, as measured by EPS and the dividend yield, while it makes these strategic investments."

Lorillard's shares trade for 13 times the consensus 2013 EPS estimate of $9.10.

Grimes & Co. securities analyst Benjamin Wallace says that he "would rather be focused on asset managers than bank that are facing these risks," and that "our process is looking bottom up art business with high returns on capital. Asset managers pop up, where there banks don't."

3 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs