L Brands Inc (LTD), QUALCOMM, Inc. (QCOM), Ford Motor Company (F): Three Stable Growth Companies Investors Can Bank On

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Investing doesn’t always have to be about high growth or low risk. Sometimes a reasonable risk to reward is what you are after. When I think of investing in three stocks that fit that bill, I’m heavily in favor of L Brands Inc (NYSE:LTD), QUALCOMM, Inc. (NASDAQ:QCOM), and Ford Motor Company (NYSE:F). A little unconventional portfolio, right? Let’s look at these three stocks to see how they fit.

Source: Ycharts

The thesis behind L Brands

L Brands Inc (NYSE:LTD) sells lingerie and apparel in mall locations through its Victoria’s Secret Brand. The company is focused on remodeling its stores, expanding it store footprint internationally, and expanding the Pink brand into its own separate retail chain.

L Brands Inc (NYSE:LTD) trades at a 19.1 earnings multiple (retail apparel companies trade at a 20.9 earnings multiple on average). The company’s somewhat higher earnings multiple is due to the premium associated with the consistent rate of growth the company’s management team has been able to accomplish over the past five years.

The stock is pretty safe. L Brands Inc (NYSE:LTD) has a short-term cash cushion with a 1.434 current ratio, meaning the company can afford to pay its short-term liabilities and still have 43.4% left over to pay for whatever emergency situation that may come up.

Analysts on a consensus basis anticipate the company will grow earnings by 11.80% on average over the next five years. The company also offers investors a 2.41% dividend yield (10-year treasuries have 2.01% yield currently).

Qualcomm, Inc. (NASDAQ:QCOM)Semiconductors offer astounding value

QUALCOMM, Inc. (NASDAQ:QCOM) is another favorite on my list. Qualcomm is in the business of licensing its semiconductor technologies to any mobile phone manufacturer. The company is heavily focused on mobile solutions. This involves antennae technologies like the QUALCOMM, Inc. (NASDAQ:QCOM) LTE Advanced (Global 4G solutions) along with mobile chipset solutions like the Snapdragon processor based on the ARM chip design.

The company is projected to grow earnings by 18% on average over the next five years. The company also trades at an 18.1 earnings multiple, which implies that the company’s growth is fairly priced into the valuation of the stock. The stock comes with a 2.18% dividend yield in order to compensate investors for the risk. The company’s 3.1 current ratio implies that the company is safe from any short-term cash needs.

The growth is undoubtedly healthy as IDC estimates that the markets for smartphones will double between 2012 and 2016 to 1.4 billion units annually. Gartner also estimates that the tablet market will grow from 125 million units in 2012 to 375 million by 2016. The growth in mobile computing is advantageous for QUALCOMM, Inc. (NASDAQ:QCOM) shareholders as QUALCOMM, Inc. (NASDAQ:QCOM) remains one of the primary suppliers of chipsets and antennae for smartphones.

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