CHICAGO, May 6, 2011 /PRNewswire/ -- Today, Zacks
Investment Ideas feature highlights Features: Chevron Corp
(NYSE: CVX), Timken Co (NYSE: TKR) and Textainer
Group (NYSE: TGH).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Are You Really an Investor?
Are you really a long-term investor?
I have seen plenty of people claim to be an investor for the
long haul, yet fall victim to classic errors of long-term
investing, my self included. Myopia is the biggest pitfall.
Being overly involved in short-term fluctuations is a surefire
way to limit your long-term potential. I am not saying you can't
find success in trading, but it requires a very different
approach.
Long-term does not necessarily mean that you can't be
aggressive, everyone's risk tolerance varies. But, if you would
like some more stability, just stick to the basics.
Here are a few stocks that have cheap valuations, decent growth
projections over a 5-year period and a Zacks #2 Rank (Buy) or
better.
Chevron Corp (NYSE: CVX) is a Zacks #1 Rank (Strong Buy)
that has a lot going for it. Shares of CVX are trading at just 8
times this year's estimates and earnings are expected to grow at
12% over the next 3-5 years. Alternative energy is great and will
happen at some point in the future, but you better believe it's
going to be a while. And, companies like CVX will see the writing
on the wall well ahead of that time and I am very willing to bet
they, and other similar companies, will be just as big in that
space. Probably through M&A. After all, they see themselves as
energy companies, not just oil companies.
Timken Co (NYSE: TKR) makes anti-friction bearings and
similar products in the U.S. and Europe. Their end markets are fairly
diversified and with a market cap of over 5 billion, there
shouldn't be any "going concern" worries.
Shares have a Zacks #1 Rank and fantastic growth expectations.
Earnings should grow upwards of 14% annually and the forward P/E is
only 13 times. That puts the PEG ratio at 0.9, a bargain.
Textainer Group (NYSE: TGH) is the largest intermodal
container lessor in the world. The company also sells used
containers to over 1,000 customers.
Estimates have been creeping higher, putting shares at a Zacks
#1 Rank and the forward P/E at just 11 times this year's estimates.
Throw in a 12% annualized long-term growth rate and you have
another PEG ratio of 0.9.
Just about everything that is worn, eaten, used, etc has been on
a combination of trucks, trains and ships. That is one thing that
will not change any time soon. So what better choice than a company
that is in that business?
Tip of the Iceberg
These are just 3 examples of the hundreds or thousands of stocks
out there that would make suitable investments. Remember, if you
truly are a long-term investor ignore the short-term noise and keep
your eyes on the prize.
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