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%.
Has owned shares in the past, but not right now.Company less attractive than in the past.Expensive business costs with inability to generate growing cash flow.Re-investment into theme park business will be beneficial.Concerned about long term prospects for company.Current share price too high to justify investment.
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.
Prefers GM (higher margins) than Ford.Electrification program is better.Pending agreement with UAW good for business.
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.
A good company, an iconic brand, pays a good dividend and offers growth. It has diversified away from soft drinks in the last decade. Doesn't own it, because he prefers Pepsi for its exposure to salty snacks.
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.
Nike benefited during Covid when people were at home buying shoes and collectors were buying their prestige shoes, but both trends have ended or cooled down. At what point will investors say that Nike stock is cheap enough and then buy? He thinks it will make a new low. Buy at $80, though it's already…
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.
Great chart over 10+ years. Lower beta than the S&P 500. Leading global consumer powerhouse with a diverse portfolio of well-known brands. Stepping into healthier acquisitions.Very strong balance sheet, robust cashflow, giving you a reliable dividend. More share buybacks to come. A name for reliable growth with income. Yield is 2.80%, expected to grow about…
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 Apr 27/23, Up 22.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with GT is progressing well. We now recommend trailing up the stop (from $11) to $12.
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.
Stress on consumers will benefit low cost retailers. $100 billion in sales very strong base.Margins improving as supply chain difficulties improve.Current share price a good place to buy.
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.
Rallied today and they plan to grow more in China, from 6,200 stores to 9,000 in 2025 vs. 16,000 in the US. Shares fall when US-China relations are rocky and rise when they are warm.
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.
(A Top Pick May 26/22, Up 32%) He targets this 13% lower than today's stock price. One of the best run companies in the world. Would not buy it now.
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.
Very strong franchise.Well known brand.Share price has been flat for past year (fears of recession).Discretionary item.Quality name for long term investor with global assets.Would recommend holding shares.
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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research EL’s share price is under tremendous pressure recently due to the weak guidance. Still, at 52X earnings the stock is still on the expensive side, even with a 28% YTD decline. Based on consensus estimates, sales are expected to decline by around -10% this year…
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.
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.
Owns shares for past 5 years.Move to cashless society good for business.Recovery in global travel helping with revenue.Good business for long term shareholders.Expecting double digit earnings growth.Current share price not cheap.Excellent management team.
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.
(A Top Pick Jan 12/23, Up 32%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MSFT has triggered its stop at $315. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 29%, when combined with our previous recommendations.
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.
It's such a large company, operating in so many verticals that there will always be a reason to worry about it, but he's held this stock forever and won't sell it. Nothing fundamental about it has changed. They continue to develop in many interesting areas. Not worried about its future.
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 May 26/22, Down 17%) It's out of favour. He targets $25.92 or 24% lower than today's price. Yields 2.11%. If you like semis, this is the cheapest one. Great quality, but they need to catch the next chip trend.
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.
Current share price trading at discount to historical valuation.Excellent brand with established technology.Supports large amount of global payments.Predictable business with growing cash flows.25x P/E justified.
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.
The question was on AI stocks. It is a good, long-term stable company but not a choice for chip stocks.
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.
Excellent business with very strong margins.Dominant in search engine technology.A.I., product recovering quickly.Current share price a good place to buy.Expecting double digit growth.Free cash flow very high - lots reinvested into R&D.
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.
(A Top Pick Sep 08/22, Up 29%) Very strong technical chart, with rising highs and lows. Trading above the rising 200-day MA. Outpacing the S&P 500 since late 2020. Continued constrained global oil supply, with demand picking up. Yield is 3.1%, expected to grow.
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.
A discretionary that yields 6.34%, but shares have fallen since early 2021. Before he would buy this, but he sees a sell signal on the S&P 500 (the last time happened in March 2020). He might buy 3M with a stop, but not enthusiastic.
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.
They report Wednesday. He worries that even the best quarter won't send shares higher, and even decline, given high expectations. He expects a great quarter with beats. They took market share from UPS after fears of a UPS strike, but this seems like a one-time occurrence.
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.
The labour agreement expires on July 31. He isn't concerned, but is concerned about the potential damage to the wider economy. We don't need this at this point in the recovery. UPS manages its balance sheet well, a better choice than FedEx.
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.
Expecting share prices to fall more.Would wait for further weakness before investing.Revenue per share falling.Outsized dividend not a good sign.