Caterpillar Inc. (CAT), The Home Depot, Inc. (HD), McDonald’s Corporation (MCD): The Biggest Threat To The Stock Market Rally

The Home Depot, Inc. (NYSE:HD) has outpaced its top rival Lowe’s Company after Chief Executive Frank Blake in recent years unveiled several initiatives including using technology to free employees from tasks to improve customer service and made distribution more efficient. Both companies, however, have seen a boost from a recovery in the housing market. The company recently reached a 52 week high, and has strengths that can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity, and good cash flow from operations. The Home Depot, Inc. (NYSE:HD) was one of the few stocks that actually benefited from the recession. During the boom years, houses were going up extremely fast, and some were being built at substandard quality to make the building process move quicker. As a result, these houses needed to be repaired and maintained. Not to mention the amount of foreclosed properties sold that needed major work. As the housing market recovers, and banks continue to unload distressed properties, the repairs will continue, and so will The Home Depot, Inc. (NYSE:HD)’s profits.

McDonald’s Corporation (NYSE:MCD) sales declined 1% in the first quarter, in line with analyst expectations, as the chain continues to get hurt by the global economy. In the U.S., its same-store sales were down 1.2%, but McDonald’s Corporation (NYSE:MCD) said that, “despite these results,” it “outperformed the competition and increased market share” in the U.S. Even in a declining market, consumers will always buy a cheeseburger and coke, regardless of the fiscal conundrum. Investors should keep an eye on McDonald’s Corporation (NYSE:MCD) and their growth initiatives, as they recently announced that they would opening chains in Russia in the coming years.

The Bottom Line

The above companies are excellent options for any value  investors looking for stocks with solid fundamentals, and a history of weathering stock market declines. Ultimately, if a company is solid from the core and has a strong management team leading the way, it will always continue it’s uptrend despite the economic forecast.

The article The Biggest Threat To The Stock Market Rally originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!