GROWTH AND INCOME: McDonald's
Market Cap: $66.7 billion
P/E Ratio: 16
Earnings Growth: 12%
Dividend Yield: 3.5%
There's a lot to love about the Golden Arches: free cash flow growth of 36% amid a global recession, steadily increasing profit and gross margins, and a price to earnings ratio of 16, down from 20 two years ago. McDonald's returns over the last year beat the market by 38 percentage points. But is there still juice left in its stock?
Absolutely, says Catherine Crain, a manager of the Dreyfus Core Equity Fund. "Going forward, growth outside of the U.S. is going to be much faster than it is within," she says. "McDonald's has a long way to go before it's fully penetrated in many of these markets."
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Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include long-term earnings growth of 7% or more, dividend yield greater than the S&P's 3.1%, and P/E ratios below 27. 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.
