4 Large Cap Stocks for 2013
To battle the impact of a Post Fiscal Cliff trading environment Mastery is going with four established companies. The winners being Anheuser Busch (BUD), Walt Disney Co. (DIS), The Coca-Cola Co. (KO) and McDonald's Corp. (MCD). You get what you pay for and now is the time to go with best in breed.
BUY AT THE TOP
Shares of Anheuser Busch (BUD) and Walt Disney Co. (DIS) are closing out 2012 near their 12 month highs. We want to ride momentum of these huge players and continue to bank coin in 2012.
Anheuser Busch Inbev (BUD) shares have traded between $58.78 and $91.21 over the past 12 months. 'The King of Beers' shares are now trading with a P/E Ratio of 19.2 and EPS of 4.55. BUD is trading at $ 87.16 and its shares are 4.65% below its 52-week high. Its no secret smaller brewers are taking away BUD's profits. In October the company missed revenue estimates by $90 million on $10.27 billion and its share price retreated below $85.
Last month Anheuser Busch Inbev's beer shipments increased 5.3% year over year in October to 36.1 million. Enjoy a cold one and drink up the 1.78% annual dividend yield. Mastery expects Boston Beer (SAM) and others to challenge BUD in 2013. However that pressure means BUD will have to make their business tastier for shareholders.
Walt Disney Co (DIS) now owns Star Wars, its almost reason enough to buy the stock. Get ready for Star Wars: Episode VII to hit the planet in 2015. Need a few more reasons, how about ESPN, Disney Theme Parks and up and coming Marvel films, games, and merchandise. Last month Disney (DIS) increased its annual dividend by 25%, they take care of their shareholders. You can't beat the mouse when it comes to media and entertainment.
Disney shares trade with a P/E Ratio of 16 and EPS of 3.13. Walt Disney trading at $ 49.85 and its shares are 7.12% below its 52-week high.
The Coca-Cola Company (KO) shares have traded between $33.28 and $40.67 over the past 12 months. Coca-Cola is up 4% in 2012, not a great return but positive none the less. We love that its share price has come down and just about everyone expects it to be back above $40 early next year. Coca-Cola has amazing financials with growth numbers that trail beverage peers. Coca-Cola (KO) is trading at $36.42 and its shares are 8.62% from its 52-week low. The company pays out a 2.8% annual dividend yield. KO is an ideal IRA play
McDonald's Corp (MCD) shares have traded between $83 and $102 over the past 12 months. MCD shares are now trading with a P/E Ratio of 16.8 and EPS of 5.31.
Hard to believe but McDonald's (MCD) is trading 6% from its 52-week low. This is McDonald's were are talking about and we expect the stock to make a full recovery to $100 in 2013. MCD pays a 3% annual dividend rate, a nice treat for shareholders while they wait for the stock to recover. The average analyst target price on MCD is $10 from today's level.
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