World’s Most Recognized Brands to Buy in 2019
We recently did a Top 10 Favourite Canadian Companies. This time, we’re looking at the beloved companies that have brand recognition across the world. These corporations have operations across the globe and are leaders in their domain. Their balance sheets are good and make great long-term investments. They also usually pay a dividend. Most of them are considered blue-chip stocks.
Blue-chip stocks are highly respected and widely known, publicly-traded companies. These well-established stocks are thought to be financially sound and are generally less volatile. Household names such as Coca-Cola Company (KO-N), Microsoft (MSFT-Q) and many others are examples of blue-chip stocks. The Dow Jones Industrial Average is a good example of an index that follows blue-chip stocks.
Here are the world’s most recognized brands to buy in 2019:
Tiffany & Co. New (TIF-N)
The Tiffany blue is known to set a flutter in the hearts of many across the world. The famed New York jeweler is known for their luxurious diamonds and sterling silver. They’ve performed well over the last quarters so it could be a good buy if you like the luxury sector.
Investors buy luxury stocks at the bottom of a recession, because the rich part of a population hold up much better in a recession. Now is not a good time to enter luxury stocks. There's nothing wrong with Tiffany per se, but now is not the time and TIF is slightly exposed to China, which…
Nordstrom Inc (JWN-N)
An American chain of luxury department stores. They’ve done well in implementing their e-commerce platform. Their stock has pulled back since their 52-week high of $67 but they recently got a rating upgrade. The management is known to give good guidance and is still a solid buy.
Bullish or bearish market outlook? He doesn't see 5 interest rate hikes this year + 1 in 2023, like Goldman predicts, not with what's happening globally. He never thought this would be a quick military incursion by Russia. That said, that doesn't matter if an investor is long-term. Buy stocks on dips like this? Absolutely.…
Walt Disney (DIS-N)
They are a leader in entertainment and have a strong global brand. They acquired 21st Century Fox last year which widened their content offering. Their newly announced streaming service has given a lift to their stock prices. A strong brand to buy and hold while taking a dividend yield of 1.6%.
(A Top Pick Jan 07/22, Up 41%) Incredible content and intellectual property.Very large production capabilities. Distribution abilities very strong as well.Concerns of streaming costs overblown.Strong believer in Bog Iger.
Ford Motor (F-N)
The fabled automaker is facing a transition in the auto market. Vehicles are moving from gas to electric. They do have some interesting models coming out but it’s a challenging time in a tough space.
He models $15.86, some upside, and trading at book value (his metrics). It's a cyclical and we're heading into a recession. He wants to see the dividend cut. The macro needs to get better, but would buy after a recession. Wrong time now.
Coca-Cola Company (KO-N)
A giant in the beverage sector. It’s also one of Warren Buffet’s favourite stocks. They pay a good dividend and is more of a defensive play. They’re diversifying from their core to sports drinks. They also bought a coffee company with potential for good growth. Analysts say that Coke has limited downsides and likely upside.
Nike Inc (NKE-N)
An American multinational that’s a leader in activewear. Their nike footwear have dedicated fans and their recent entry into china was great. A globally well-managed company.
Retail in 2023 looks good. TJX is trading at 52-week highs, and having a good run these holidays. Discount retailers will do well in 2023 while retailers with high inventories will have a tougher time. Better to be a stockpicker in retail, like Nike who surprised all with its recent report, given the success of…
A leading food, snacks and beverage company. They’ve had some difficulty growing but they’ve diversifying away from the shrinking carbonated beverage category. More than 50% of their revenue now comes from other sources and they’ve bounced back.
Upgraded today. A staple. They've done a fantastic job managing its balance sheet and diversifying its products, not only beverages but also snacks. Revenue grows 10% annually in the last two years. Strong and unusual.
Goodyear Tire (GT-Q)
They have new contracts, and are turning around the company. They announced good earnings and are rebounding. They have serious brand recognition in the sector and should grow long term.
(A Top Pick Nov 15/22, Down 0.1%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with GT is progressing well. To remain disciplined, we recommend trailing up the stop (from $8) to $10 at this time.
Target Corp (TGT-N)
The department store that failed in Canada. Things seem to be coming back to normal after Christmas sales. Though it’s not the most compelling in its space, it enjoys lots of shoppers and is a solid hold.
Consumer staples are a bit expensive, but they beat EPS and are managing inventory better. It'll be difficult to reach their 6% margin target in this economy. Shares are up 8% YTD. Has a concern of weakening in the lower-end consumer, though.
Barbie, American Girl and Fisher-Price are under their belt and they have great brand power. The consumer discretionary sector is particularly harsh. They have brought in a new CEO in the last couple years to fix the situation and it could be a turnaround store. There have also been some talks of a takeover by Hasbro.
They just delivered sub-optimal numbers. Suffered supply chain shortages last year. Maybe there was less demand after Covid? We knew things were bad when they pulled their forecast last October. Q4 revenue was down 22% YOY and an 11-cent earnings miss. Their latest full-year forecast is weaker.
Dunkin’ Brands Group (DNKN-Q)
The company known for their donuts. They also have Baskin-Robbins Franchises under their brands. They’ve had some volatility so do your homework. They are usually regarded in comparison to Starbucks.
Today, the New York Times reported that a private entity wants to buy Dunkin'. Some felt that this stock was already overextended, but he disagrees. Their track record in acquisitions is fantastic. It has survived while peers have fallen away.
The American clothing brand that also runs Old Navy and Banana Republic. They announced closing 230 stores and splitting off of Old Navy in 2020. They’ve experienced volatility due to restructuring but it’s still a solid long term hold.
The Japanese automaker and they’re vying to be the largest auto manufacturer on the planet. There’s been a slowdown in car sales but they’re one of the strongest auto companies.
TM vs. GM vs. TSLA Depends on your risk tolerance. He's been looking at GM recently, but hasn't taken any action. Really good recent quarter, will be pressure on financing side of the business. Targets are pretty optimistic. TM is a safer bet for the next year or so; it's a giant company with improving…
The global coffee company that’s shaped coffee culture around the world. They’ve been stock market darlings and continue to innovate, but it’s pretty expensive. Wait for a pullback and hold for long-term.
SBU and Estee Lauder Today marks the first day that American business executives can fly to China after three years. Those American companies which already have a strong presence in China can get a major boost from this reopening. The company was thriving before the reopening, so imagine what happens now.
Walmart Inc (WMT-N)
The big-box store that’s vying to be a leader in retail. They are facing harsh competition from Amazon. They’ve been effective in growing their online presence, and are competing well. It’s a more defensive choice and will do relatively well going forward.
Prefers this to, say, Target, in discretionary. WMT is attracting higher-end customers. If the economy weakens, people will go long Walmart and short Target.
One of the most recognized brand across the world. The golden arches can be seen virtually anywhere in the world. They are well run and have good cash flow. They pay a good dividend.
Consistently performed over the past 5 years. Low volatility that is good for turmoil in the market. Valuation a little high at the current share price (24x-26 PE multiple). Would prefer a retail name like Nike or Starbucks (cheaper valuation).
Estee Lauder (EL-N)
A giant in prestige skincare, makeup and other beauty products. It has a high price that’ll grow even higher still. They are expanding into Asia and they have great cash flow.
SBUX and Estee Lauder Today marks the first day that American business executives can fly to China after three years. Those American companies which already have a strong presence in China can get a major boost from this reopening. The company was thriving before the reopening, so imagine what happens now.
Macys Inc. (formerly Federated Department Stores) (M-N)
A well-known department store in the United States. They’ve been facing competition from Amazon and the contracting brick and mortar model. They have a lot of embedded capital and are still a stable company.
Macy's, Inc. is one of the nation's premier omni-channel fashion retailers. The company comprises three retail brands, Macy's, Bloomingdale's and Bluemercury. Macy's, Inc. is headquartered in New York, New York. Social media mentions are up 67% in the past 24h.
Mastercard Inc. (MA-N)
One of the most used payment providers and has grown well. With the growing e-commerce and use of online payment, this will continue to grow. They’re focusing on emerging market, where there is potential for huge growth as well.
MA vs. V He prefers Visa, but both are good. MA gives more international exposure, so maybe a bit more growth. Defensive business models. Moving to the Financial sector of the S&P 500, so it will boost performance of that sector.
Everyone who’s used a computer knows Microsoft and Windows. They have a great business model and they’re growing their cloud service. The move to software as a service that’s increased their rate of growth.
It has fallen with the tech sector but not as much and is now at a good price. It has been an early investor in AI and signs are that this is helping the BING search engine and search engines are one of the most profitable areas in the tech sector due to advertising. BING…
A high-quality company that’s a trillion dollar business. The iPhone has dominated the smartphone space and they’re growing their services. A high-quality company that will continue to grow.
Good entry point or wait? He'd like to add in lower, but it holds in so well. One of the best all-weather stocks you can have. Performs well in periods of volatility, element of safety. Main driver will be continuing to get that install base, as services growth is where the story's going to come…
Hewlett Packard Enterprise Co. (HPE-N)
A leader in software services to other global corporations. They are extremely well run and earnings have been moving up. A solid investment since they have a good dividend, free cash flow and good future growth. They are also buying back shares so it could be a good chance to hop in.
Allan Tong’s Discover Picks This so-called “old tech” name has gained 52% in the past year. Surprising? Apple has climbed 36%. While FAANG has been stealing the spotlight, HPE has been making money. The company last reported on November 23 (Q3-2021): revenues climbed 9% YOY, adjusted earnings leapt 52% while both numbers beat expectations. Guidance…
A tech stock that has proven to perform well and has shown consecutive growth. They have a new CEO. It is a good long term investment and it’s a good price right now. They pay a nice dividend.
(A Top Pick Jan 05/22, Down 46%) You want to be in the S&P 100. He models $15.93, 40% lower than now. Trades at book value and pays 2.6%. The semis are highly cyclical.
Visa Inc. (V-N)
The biggest credit card company in the world. They’re growing internationally, after buying Visa Europe. It has positive outlook with a good chart. The move away from physical money to virtual will help Visa’s growth.
V vs. MA He prefers Visa, but both are good. MA gives more international exposure, so maybe a bit more growth. Defensive business models. Moving to the Financial sector of the S&P 500, so it will boost performance of that sector.
A computer hardware, software, and cloud service company. They have been struggling to keep up with their competition though their chart is okay. They’re acquisition of Red Hat didn’t go well with investors but they have a buyback program and 5% yield, so it could be alright for a long term hold.
Has long lagged the tech sector, though better in the past year. He's concerned that IBM's mainframe customers will switch to the cloud. He sees only 4-5% growth rate in EPS.
Alphabet Inc. / Google (GOOG-Q)
Google is almost synonymous with the internet and large parts of the web are accessed through it. They don’t pay a dividend, but have immense growth potential as leaders in multiple domains. With assets like Youtube, Google Home and Android, they are well diversified.
The question was on buying Google or Apple. He likes all the big techs. They are safe havens which will see very good earnings per share growth over the next 3 to 5 years through cost cutting. This includes Amazon which has some of the best businesses in the world, not the retail part though,…
Exxon Mobil (XOM-N)
A multinational oil and gas corporation that provides good value to investors. They’ve been hit over concerns that the market is moving away from carbon fuels. As with other energy stocks, it’s been pushed down, but with a 4% dividend yield, you can get paid to wait.
3M Co. (MMM-N)
A industrial giant that’s a quality business. It’s been very consistent through the years and has different lines of businesses. They’ve been hit with the trade-tensions. They pay a healthy dividend of 6% so you’ll be paid to be patient on this one. Generally a good long term hold.
Big, diversified manufacturing conglomerate. Safety, industrial, transportation applications. Terrible chart, losing money. Paltry 10-year return is only from the dividend. Balance sheet strong, dividend not at risk. A show-me story. Stay on the sidelines.
An international courier delivery company. If you’ve shopped online, there’s a good chance it was shipped through FedEx. Amazon and other e-commerce needs someone to ship their orders and FedEx has profited well from that though Amazon is now entering deliveries.
Fedex vs. UPS (FedEx just reported a strong quarter) How long can both keep cutting jobs until they can't cut anymore? FedEx retained pricing power with ground revenues up 7%. Interesting. How long can they maintain this edge as we enter a recession?
United Parcel Services (UPS-N)
The trade war brought them down last year but it’s a good company. However, they are better positioned to deal with an economic slowdown. They too have been facing pressure from Amazon over deliveries.
Fedex vs. UPS (FedEx just reported a strong quarter) How long can both keep cutting jobs until they can't cut anymore? FedEx retained pricing power with ground revenues up 7%. Interesting. How long can they maintain this edge as we enter a recession.
American Airlines Group (AAL-Q)
One of the biggest airline carriers, They pay a dividend so you get paid while holding long term. They’ve been moving sideways for a while and they’re in a tough sector.
The leading telecommunication company in the US. They’re implementing 5G and are considered lower risk than other telecos. They have a lot of recurring payments from contracts so they have stability. Their dividends are considered to be stable.
Great dividend. Cheap. Loads of upside potential. Analysts and market are looking for something to get going. Needs some catalyst to get people excited and the stock can get moving again. See his Top Picks.