The S&P 500 has gained about 20% in 2017, and several other notable indexes have hit new all-time highs throughout the year. This movement can be attributed in large part to the continued rise of household technology powers, including the likes of Facebook FB and Apple AAPL .
Along with these two tech giants, instantly recognizable companies such as Amazon AMZN and Netflix NFLX also surged in 2017. These big name, big-revenue companies often drive indexes higher and can become very attractive to investors as they are covered on a nearly constant basis.
Of course, just because a company has a name people know, or a product they might recognize, does not mean it is a good stock to buy. Nevertheless, well-known companies, with brands that can be seen all over the world, are always popular picks.
With that said, let’s take a look at three iconic companies that also have high Zacks Ranks and solid fundamentals:
1. 3M Company MMM
The maker of products such as Post-it notes and Scotch tape, which also boasts thousands of other SKUs across an array of fields, is currently a Zacks Rank #2 (Buy) and sports an “A” grade for Momentum in our Style Scores system.
Looking ahead, 3M is projected to see its current full-year earnings jump by 11.48% to hit $9.10 per share, based on current Zacks Consensus Estimates. The conglomerate’s full-year sales are expected to reach $31.54 billion, which would mark nearly 5% growth-a solid rate for a company of its size and age.
3M’s current cash flow growth rate outpaces its industry’s average and could help the company innovate further. Looking farther down the road, the company expects strong sales growth in 2018. More specifically, 3M expects to grow its business in China and expand its self-driving car portfolio, all while continuing to streamline its product offerings.
Shares of 3M popped over 33.50% in 2017, including 12.97% in the last 12 weeks. Yet, 3M’s shares currently rest below their 52-week high, which could give investors the chance to buy at a potentially discounted price ahead of the fourth-quarter earnings season.
2. Intel Corporation INTC
This manufacturer of desktops, laptops, tablets and powerful processors just closed at a new 52-week high of $47.56 per share on Wednesday. Before today’s gains, shares of Intel had surged 29.69% in 2017. Intel is also currently a Zacks Rank #1 (Strong Buy) and rocks a “B” grade for Value in our Style Scores system.
The tech giant is currently trading at 14.47x earnings, which marks a major discount compared to the “Semiconductor – General” industry average and looks even better compared to rival Nvidia’s NVDA 46.82 P/E ratio.
Intel’s CEO recently spoke about the need for his company to take more risks, where change will become the “new normal.” In a memo to employees, Intel’s chief executive wrote: “Anything that produces data, anything that requires a lot of computing, the vision is, we’re there.”
Looking ahead, Intel is projected to see its full-year EPS climb 19.51% to hit $3.25 per share, based on our current Zacks Consensus Estimates. The company has also received 15 upward earnings estimate revisions against no downgrades for its current full-year, all of which came in the last 60 days. Intel also earned a 14 to zero upgrade ratio for its fiscal 2018.
3. Toyota Motor Corporation TM
This Japanese automotive giant, which helped kick off the modern sustainable vehicle revolution with its Toyota Prius, is currently a Zacks Rank #2 (Buy). On top of that, Toyota earned an “A” grade for Value in our Style Scores system, helping the company score an overall “B” VGM grade.
Toyota is currently trading at only 10.61x earnings, which fairs well compared to the “Automotive – Foreign” industry average and marks a discount against the S&P 500. The company’s 0.73 P/S ratio and P/B ratio of 1.11 also help demonstrate Toyota’s current value to investors.
Shares of Toyota have gained about 4.68% in the last 12 weeks and currently sit near their 52-week high. However, the company made announcements recently that could help sends its shares even higher.
Toyota just announced that it sold 10.35 million vehicles this year-up 2% year-over-year- putting it close to last year’s top seller Volkswagen AG (VLKAY). Toyota now expects to sell 10.49 million vehicles in 2018 and plans to roll out 10 fully electric vehicles by the early 2020s.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report
3M Company (MMM): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.