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

Fords are built tough

Let me reiterate how much I like this American car company. The turnaround efforts by CEO Alan Mulally have been phenomenal. Demand for durable goods has been on the rise, which has helped America’s favorite auto company report revenues of $22.3 billion in the first quarter of 2013 versus the $18.6 billion in revenues from the year-ago period (20% year-over-year revenue growth).

The company gained market share within the United States from 15.2% in 2012 to 15.9% in 2013. The growth in market share was due to the company’s increased sex appeal to customers. Perhaps that’s an exaggeration, but the company has done a better job of designing more attractive cars and has continued to build on the impression of a more luxurious automotive experience for its entry-level Ford Motor Company (NYSE:F) brand.

The company is projected to grow earnings by 10.97% on average over the next five years. The company trades at a 10 times earnings multiple, which is reasonable in light of the projected growth. The company also offers its investors a 2.7% dividend yield.

Ford Motor Company (NYSE:F) probably has the safest balance sheet of the three, as the company has a 2.789 current ratio meaning that the company has 178.9% cash left over after paying for all short-term liabilities.

Conclusion

I focused on three companies that are likely to grow at reasonable rates and will not betray an investor’s bank account by losing money. Ford Motor Company (NYSE:F), QUALCOMM, Inc. (NASDAQ:QCOM), and L Brands Inc (NYSE:LTD) are known for having strong management practices.

The companies are cyclical which makes them a poor investment during an economic downturn. However on the upside, investing into cyclical names during a period of economic expansion will contribute even further to an investor’s return on investment.

The article Three Stable Growth Companies Investors Can Bank On originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Ford. The Motley Fool owns shares of Ford and Qualcomm. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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