FOREIGN VALUE: Philips Electronics
Market cap: $18.8 billion
P/E ratio: N.A. (no earnings in 2008)
Earnings growth: 15%
Dividend yield: 4.5%
The diversified consumer products maker lost money last year when customers stopped buying electronics and hospitals stopped investing in medical equipment, affecting two of Philips' major divisions. But analysts say last year's weak performance could be a blessing this year. It gives the company a good chance to report great year-on-year earnings improvements.
In the meantime, the company should benefit from management's aggressive cost cutting, and investors are paid a handsome 4.5% dividend yield. When consumers spend again, the light bulb and domestic appliance divisions are expected to grow.
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Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include low price/earnings and price/book ratios relative to competitors, rising profit margins, and accelerating earnings growth. All data related to stock price as of June 1, 2009. P/E ratios based on the previous 12 months' reported earnings. Earnings growth based on Wall Street estimates for the next three to five years.
