DEEP VALUE: Valmont
Market cap: $1.9 billion
P/E ratio: 15
Current ratio: 2.9
Dividend yield: 0.7%
A Federal highway spending bill and China's infrastructure buildout should help this maker of traffic lights and outdoor lighting, transmission lines, and highway signs. On average, Wall Street analysts expect the company to increase earnings by 13.5% over the next five years and sales by 16.3% over the same time period.
Valmont's irrigation products division has weighed on the company as farmers delay investing in their fields due to the uncertain economy. But as Gabelli analyst Tony Fritz points out, these farmers will eventually have no choice and be forced to replace the equipment they use to spread water, chemical fertilizers, and pesticides. That could mean a big pop in future sales.
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Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include prices no more than 15 times average earnings per share over the past three years, 10 years of positive earnings, annual per-share earnings growth of 3% or more, 10 years of uninterupted dividends, and curent ratio (assets divided by liabilities) of 2 or better. All data related to stock price as of June 1, 2009. P/E ratios based on average three-year earnings.
