Over the past 5 years, China Mobile Ltd. (ADR) (NYSE:CHL), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and ArcelorMittal (ADR) (NYSE:MT) have been hammered. The international market bull run peaked around 2008, but much has changed.
Source: YCharts
Under normal circumstances, if you saw a chart like that you would think to avoid these stocks. Upon further inspection, these businesses are massive industrial stalwarts and have long been touted as solid long-term investments.
Holding its own
Of the 3, China Mobile Ltd. (ADR) (NYSE:CHL) has best held its stock price over the past 5 years. One of the potential catalysts for China Mobile Ltd. (ADR) (NYSE:CHL) is the opportunity of landing the iPhone. It has a vast customer base in China and if it can land a deal with Apple, its stock should see an immediate boost in price.
Last year, the company grew its net income by 3.74%. This year it continues to grow and has been increasing its dividend. China Mobile Ltd. (ADR) (NYSE:CHL) currently has a dividend hovering around 4%. Its weaker price performance can more largely be attributed to international stocks falling out of favor and general weakness in China.
China Mobile Ltd. (ADR) (NYSE:CHL) is the largest carrier in the world and that makes it one of the best telecom investments out there. When international markets turn, you should expect China Mobile Ltd. (ADR) (NYSE:CHL) to be one of the largest beneficiaries. Its future is supported by a dominant market position and sticky industry.
Down, but not out
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) has been hammered over the past five years. Its stock price is trading at around $13 per share, a far cry from its peak in 2008.
Last year, the company lost money and had to suspend its dividend. But recently, it resumed paying its dividend as the cash has started to flow more freely.
Recently, it suffered because of a softer Brazilian economy and a weaker currency. These big picture concerns generally don’t have to do with its operations. Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) delivers energy to Brazil which is still an emerging growing market.
In March, diesel increased by 5% which boosted the shares. Going forward, a more business-friendly political environment backed by aggressive price increases should help Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR). With the stock’s price as low as it is, there appears to be a lot more potential upside than downside. For Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), the future looks bright as it continues to make massive oil discoveries and begins its quest to eliminate Brazil’s dependence on foreign suppliers.
Don’t overlook this steel giant
ArcelorMittal (ADR) (NYSE:MT) is the world’s largest steel maker by output. Like the rest, its shares have been beaten down over the past 5 years. Currently, its trading near a 52 week low.
The company is suffering from weakness in Europe, as a large part of its operations depend on steel demand from that region. Worldwide steel demand has also deteriorated which hasn’t helped the shares.
Rising steel prices, increased demand, and an economic recovery in Europe are all factors that should push the stock higher. Over the long-term, if the company can hold its market position, a recovery will be inevitable.
ArcelorMittal (ADR) (NYSE:MT) is currently trading around 40% of its book value. It’s expected to generate $82 billion in revenue this year and $87 billion next year. This is huge and if steel prices rise along with demand, profits should skyrocket.
Conclusion
It takes a lot of courage to buy these names right now, but generally, courage is rewarded. China Mobile Ltd. (ADR) (NYSE:CHL), Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), and ArcelorMittal (ADR) (NYSE:MT) seem to be solid bets, once you do your own research, maybe you’ll agree.
The article 3 Solid Stocks Left Behind In This Bull Market originally appeared on Fool.com and is written by Anthony Parsons.
Anthony Parsons owns shares of China Mobile, ArcelorMittal, and Petroleo Brasileiro (NYSE:PBR) S.A. (ADR). The Motley Fool recommends Petroleo Brasileiro S.A. (ADR). The Motley Fool owns shares of ArcelorMittal and China Mobile. Anthony 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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