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Fortune 40: Stocks to Retire On
by David Stires
Wednesday, June 20, 2007provided by
Wednesday, June 20, 2007provided by
Will the Dow and the S&P 500 go back to their record-setting ways? Is the recent weakness the start of something much worse? With the fate of the bull market hanging in the balance, this is a perfect time to revisit the Fortune 40, the portfolio we've designed - and recalibrated annually - to help you thrive in markets both rocky and calm, and build for retirement.
Our 40 favorites turned in a banner year, trouncing even the S&P's glitzy performance. From June 2, 2006 to June 1, 2007, our diversified group returned 27.4%, compared with 21.5% for the S&P. Since its inception in 2002, the Fortune 40 has delivered an 18.3% annualized return, easily besting the S&P's 14.7%.
| More from Fortune on CNNMoney.com: • Fortune 40: In-Depth Slideshow • Six Supertrends ... and Six Superstocks • Ben Stein's Perfect Portfolio |
We started with virtually the entire market and narrowed the field by running a grueling series of screens based on each experts' methods. We focused on companies whose shares appear cheapest relative to their long-term growth prospects. We combed through SEC filings, scoured analyst reports, and grilled large shareholders. We favored stocks that are also owned by fund managers with demonstrated records of success.
The tables below list all 40.
Growth and Income
| Company (Ticker symbol) | Current price | 52-wk high | 52-wk low | Market Cap (mill) | Div Yield | P/E Ratio | Earnings growth |
| Abbott Labs (ABT) | $54.53 | $59.50 | $41.44 | $83,995.83 | 2.4% | 21.8 | 11% |
| Altria (MO) | $70.32 | $72.20 | $52.64 | $147,900.26 | 3.9% | 13.8 | 8% |
| Coca-Cola (KO) | $51.81 | $53.65 | $42.27 | $119,674.36 | 2.6% | 21.2 | 9% |
| Colgate-Palmolive (CL) | $66.37 | $69.00 | $58.01 | $33,947.72 | 2.2% | 22.4 | 11% |
| General Mills (GIS) | $59.99 | $61.52 | $49.27 | $20,778.32 | 2.5% | 18.8 | 8% |
| Johnson & Johnson (JNJ) | $62.33 | $69.41 | $58.97 | $180,542.46 | 2.7% | 15.8 | 9% |
| Procter & Gamble (PG) | $61.82 | $66.30 | $54.70 | $194,666.48 | 2.3% | 21.6 | 11% |
| Wyeth (WYE) | $58.20 | $59.00 | $41.91 | $78,288.31 | 1.8% | 17.6 | 8% |
| Current price, 52-week high/low and market cap as of Jun 18 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline. | |||||||
Bargain Growth
| Company (Ticker symbol) | Current price | 52-wk high | 52-wk low | Market Cap (mill) | P/E | PEG Ratio | Earnings growth | Debt/ Equity Ratio |
| 3M (MMM) | $87.67 | $89.03 | $67.05 | $63,140.37 | 18.5 | 1.6 | 11% | 0.18 |
| AIG (AIG) | $72.47 | $72.97 | $57.52 | $188,004.36 | 11.4 | 1.0 | 11% | 0.2 |
| Accenture (ACN) | $41.34 | $41.84 | $25.68 | $32,182.98 | 21.7 | 1.4 | 14% | 0 |
| Chubb (CB) | $54.05 | $55.99 | $46.94 | $21,699.99 | 9.5 | 1.0 | 10% | 0.24 |
| Conoco- Phillips (COP) | $80.80 | $80.76 | $54.90 | $132,057.89 | 8.4 | 1.2 | 8% | 0.28 |
| McKesson (MCK) | $59.91 | $63.90 | $44.60 | $17,790.57 | 20.9 | 1.4 | 14% | 0.29 |
| Microsoft (MSFT) | $30.54 | $31.48 | $21.79 | $292,122.48 | 21.3 | 1.6 | 13% | 0 |
| United Health (UNH) | $52.96 | $57.10 | $42.90 | $70,969.00 | 17.7 | 1.0 | 15% | 0.26 |
| Current price, 52-week high/low and market cap as of Jun 18 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline. | ||||||||
Deep Value
| Company (Ticker symbol) | Current price | 52-wk high | 52-wk low | Market Cap (mill) | Div Yield | P/E | Current ratio |
| Aetna (AET) | $50.48 | $53.43 | $30.94 | $25,860.90 | 0.1% | 17.7 | 2.5 |
| Applied Industrial Tech (AIT) | $29.03 | $30.00 | $20.75 | $1,250.32 | 1.6% | 15.6 | 2.6 |
| Carpenter Technology (CRS) | $133.40 | $137.99 | $90.11 | $3,490.14 | 0.9% | 13.4 | 4.0 |
| Loews (LTR) | $52.89 | $53.46 | $33.50 | $28,403.36 | 0.5% | 13 | 14.4 |
| Lufkin Industries (LUFK) | $66.08 | $66.88 | $49.05 | $994.24 | 1.3% | 13.2 | 4.0 |
| Pfizer (PFE) | $26.25 | $28.60 | $22.16 | $184,229.40 | 4.4% | 12.3 | 2.2 |
| Tidewater (TDW) | $70.24 | $70.21 | $40.06 | $4,026.65 | 0.8% | 12.0 | 4.8 |
| VF Corp. (VFC) | $93.50 | $95.10 | $62.16 | $10,413.00 | 2.4% | 18.6 | 2.5 |
| Current price, 52-week high/low and market cap as of Jun 18 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline. | |||||||
Small Wonders
| Company (Ticker symbol) | Current price | 52-wk high | 52-wk low | Market Cap (mill) | P/E ratio | Return on assets | Free Cash Flow |
| CSG Systems International (CSGS) | $27.12 | $28.45 | $23.18 | $1,176.57 | 19.3 | 9% | $82 million |
| Grey Wolf (GW) | $8.37 | $8.36 | $6.10 | $1,547.35 | 7.8 | 20% | $91 million |
| Hercules (HPC) | $19.11 | $21.40 | $12.00 | $2,228.07 | 13.6 | 9% | $79 million |
| K-Swiss (KSWS) | $28.01 | $37.81 | $22.54 | $970.47 | 13.9 | 19% | $62 million |
| Navigant Consulting (NCI) | $20.11 | $23.28 | $17.27 | $1,168.39 | 20.4 | 9% | $56 million |
| Park Electrochemical (PKE) | $31.59 | $33.70 | $23.05 | $638.05 | 16.4 | 9% | $6 million |
| Penn Virginia Resource (PVR) | $30.78 | $31.65 | $23.01 | $1,294.64 | 19.0 | 10% | $31 million |
| Plexus (PLXS) | $22.95 | $35.37 | $15.78 | $1,063.34 | 13.4 | 10% | $71 million |
| Current price, 52-week high/low and market cap as of Jun 18 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline. | |||||||
Foreign Value
| Company (Ticker symbol) | Current price | 52-wk high | 52-wk low | Market Cap (mill) | P/E ratio | Div Yield | Earnings growth |
| Diageo (DEO) | $86.86 | $86.92 | $65.19 | $57,648.87 | 23.4 | 2.9% | 11% |
| Novartis (NVS) | $55.65 | $61.60 | $51.72 | $151,867.24 | 17.5 | 1.7% | 12% |
| Petroleo Brasileiro (PBR) | $122.25 | $121.95 | $73.78 | $77,527.10 | 11.2 | 0.6% | 15% |
| Sanofi-Aventis (SNY) | $41.25 | $50.05 | $41.09 | $112,245.38 | 10.9 | 1.7% | 7% |
| Total (TOT) | $79.17 | $78.99 | $59.38 | $189,435.05 | 10.7 | 2.8% | 8% |
| UBS (UBS) | $62.52 | $66.26 | $48.34 | $131,612.42 | 13.3 | 2.0% | 14% |
| Unilever (UL) | $31.29 | $33.31 | $21.01 | $40,994.78 | 19.7 | 2.1% | 12% |
| Vodafone Group (VOD) | $32.30 | $32.60 | $20.07 | $170,902.08 | 14.1 | 4.2% | 6% |
| Current price, 52-week high/low and market cap as of Jun 18 16:00 P/E based on earnings for the last 12 months. Earnings growth based on analyst projections for the next five years, according to Baseline. | |||||||
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