3 Reasons Why the Stock Market of 2013 Isn’t the Same as 2007: QUALCOMM, Inc. (QCOM), Caterpillar Inc. (CAT), Teva Pharmaceutical Industries Ltd (ADR) (TEVA)

Developing markets make up a sliver of Caterpillar Inc. (NYSE:CAT)‘s sales, but they’ll likely become a bigger slice of revenue as the trend in global urbanization unfolds, increasing demand for construction. This leading manufacturer of heavy-duty equipment boasts an attractive forward P/E ratio of 10 and rewards investors with a 2.3% dividend yield.

Both QUALCOMM, Inc. (NASDAQ:QCOM) and Apple Inc. (NASDAQ:AAPL) boast plentiful growth prospects and enticing valuations, even with the Dow trading above 14,300. In addition to its impressive patent portfolio, QUALCOMM, Inc. (NASDAQ:QCOM)’s solid positioning in smartphone chips gives investors an opportunity to participate in the overall mobile trend. Meanwhile, Apple’s record sales of its prolific iDevices help drive mobile data traffic to new highs. Global mobile data traffic more than doubled in 2011 and is expected to continue doubling annually. QUALCOMM, Inc. (NASDAQ:QCOM) and Apple trade at respective forward price-to-earnings ratios of 14 and nine.

Surely, these five stocks, along with others, will experience dips. After all, past stock-market gains weren’t achieved without rough patches along the way. So when these declines occur, remember to remain steadfast and disciplined. Don’t forget that pullbacks are an unavoidable part of investing.

Foolish bottom line
This new stock-market high, coupled with sound economic fundamentals, signals that we’re moving in the right direction. Even though the stock market performance in the near term may not equal the gains of the recent past, now is still a good time for long-term investors to add high-quality stocks.

The article 3 Reasons Why the Stock Market of 2013 Isn’t the Same as 2007 originally appeared on Fool.com and is written by Nicole Seghetti.

Fool contributor Nicole Seghetti owns shares of Apple, Pfizer, and Caterpillar. Follow her on Twitter @NicoleSeghetti. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Qualcomm.

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