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.
--K.B.
