NEW YORK (TheStreet) -- China Mobile (CHL), Sasol (SSL) and Philippines Long Distance Service (PHI) are large-cap stocks with a lot to offer. With these stocks, long-term growth, value and income investors have the opportunity to profit from the expanding consumer class in growing emerging market nations.
According to a report from McKinsey & Company, Capturing the World's Emerging Middle Class, spending by the middle class in emerging market countries will increase from just under $7 trillion in 2010 to around $20 trillion by 2020. That is about twice the current spending level in the United States. China Mobile, Sasol Ltd, and Philippines Long Distance are all in position to gain from that growth.
China Mobile is the world's largest mobile phone company.
In that capacity, it should benefit from the rise of the Chinese consumer. As detailed in another article on TheStreet, the Chinese Government wants to increase the role of consumer spending in the country's economy. With 760 million customers, that should favor China Mobile. Down nearly 10% for 2014, China Mobile is trading at a price-to-earnings ratio of under 9. Combined with a dividend yield of 4.16% and a clean balance sheet with no debt, it is very appealing to growth, value and income investors.
That is much the same story with South Africa's Sasol, an integrated oil and petrochemicals firm.
For income investors, it does not come much better than a 4.76% dividend yield. Growth investors should be pleased by the quarterly earnings-per-share and sales growth of more than 100% each. While that is clearly unsustainable, Sasol does have a forward price-to-earnings ratio of 8.48. As the present price-to-earnings ratio is 12.17, that is a bullish projection for the future. Sasol's profit margin of 33.90% and return-on-equity of 47.10% is far superior to others in its sector, such as BP PLC (BP) at 5.90% and 18.10%, respectively; Chevron (CVX), at 9.60% and 15.20%, respectively; and ExxonMobil (XOM) at 7.60% and 9.60%, respectively.