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!

5 Stocks That Have Yet to Recover From the 2008 Crisis

>>5 Stocks Charts You Need to See

Yet a quick glance at this company's income statement hardly paints the picture of distress. Consider that in both 2006 and 2007, before the financial crisis, Corning generated around $600 million in annual free cash flow, while over the past three years, that figure has averaged $1.3 billion. In fact, analysts at Merrill Lynch see that figure topping $1.5 billion by 2014.

What is Corning doing with all that cash flow? Well, it has boosted its dividend at a double-digit pace in the past three years; the dividend yield now stands at 2.8% and is poised to rise higher. And the company has bought back 90 million shares over the past six quarters. In April, 2013, Corning announced plans to buy back $2 billion more.

Xerox

After being stuck in a $6-to-$8 trading range for several years, shares of Xerox (XRX) have recently moved up above $9. Still, that's cold comfort for anyone who owned this stock five years ago, when it traded for $14. The good news: This office equipment and services titan is poised to re-visit those 2008 levels in coming years, thanks to prodigious free-cash-flow generation.

>>4 Red-Flag Stocks to Sell This Summer

For a bit of context, Xerox generated an average of $1.2 billion in annual free cash flow in the years 2004 through 2008. Yet in three of the past four years, that figure has exceeded $1.8 billion. What's Xerox's secret? A $6.4 billion to acquire Affiliated Computer Services in early 2010, a leading provider of outsourced services. It's a business with low growth prospects but very steady cash flow thanks to long-term contracts. Xerox's customer base was largely blue-chip companies, while ACS brought a customer base of mid-sized businesses.

Goodyear Tire & Rubber

Shares of tire maker Goodyear Tire & Rubber (GT) have slid 30% in the past five years, as global car and truck sales remain below peak levels. But as auto sales move back to pre-recession levels, look for impressive free cash flow from this company.

Over the past few years, Goodyear has spent billions to modernize its global network of factories, which drained away cash flow. Those investments are now complete and are already bearing fruit. Goldman Sachs expects operating cash flow to rise from $280 million this year to $900 million in 2014 to a hefty $1.5 billion by 2015. Much of that should convert into free cash flow as capital spending sharply slows. Shares currently sport a free cash flow yield of 11% based on that 2015 Goldman Sachs projection.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • 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