The company’s truck lineup is also doing very well with sales up 20%; the F-Series sold 68,009 vehicles, an increase of 24% and the best June sales month since 2005. Ford Motor Company (NYSE:F) shares are a good value at ten times 2014 earnings. Growth for next year is projected at 18%, followed by a slow down to 12% over the next five years. Estimated EPS for 2013 and 2014 is $1.42 and $1.68.
Growing sales supported by housing market
Increased activity in the housing market is also benefiting retailers that supply household goods, like Bed Bath & Beyond Inc. (NASDAQ:BBBY). The company’s first quarter results gave us a diluted EPS of $.93 and net earnings of $202.5 million, versus $.89 per share and $206.8 million in the same quarter last year. Comparable same store sales increased by 3.4%. Net sales for the quarter were up 17.8%, increasing to $2.6 billion.
The company is projecting diluted EPS for 2013 to be between $4.84 and $5.01; average EPS estimated by analysts for 2014 is $5.62. Bed Bath & Beyond Inc. (NASDAQ:BBBY) shares trade at 16 times 2014 earnings and its PEG ratio is 1.29, so shares appear somewhat overvalued. However, the next quarter should boost company sales as students go back to school shopping.
Strong results on sales of consumables
Rising sales at Family Dollar Stores, Inc. (NYSE:FDO) matched the high-end estimates projected by the company for the third quarter. Net sales rose 9% to $2.57 billion from $2.36 billion in the same period last year. Comparable store sales for the quarter rose 2.9%.
The company’s sales of consumables like food, health and beauty products, and tobacco increased 14.8% and helped the company gain market share. However, discretionary sales remain “challenged” and the company expects its customers to continue to keep their spending in check on these items. Analysts estimate full year 2013 EPS of $3.78 and $4.15 for 2014. Growth for the next five years is estimated at 11%, a drop from the 19% rate of the past five years.
My Foolish conclusion
General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) are the best buys of the group and should continue to do well if the economic recovery picks up speed. A note on Ford Motor Company (NYSE:F) — the company may be subject to legal problems regarding claims that its My Ford Touch system screens are defective, so it will be important to watch how this issue unfolds.
Bed Bath & Beyond Inc. (NASDAQ:BBBY) and Family Dollar Stores, Inc. (NYSE:FDO) appear to be overvalued at the moment, but are worth watching. For Bed Bath & Beyond Inc. (NASDAQ:BBBY), continued strength in the housing market should help to drive future sales, while Family Dollar Stores, Inc. (NYSE:FDO) should profit from slow job growth and budget-conscious consumer spending.
Eileen Rojas has no position in any stocks mentioned. The Motley Fool recommends Bed Bath & Beyond, Ford, and General Motors. The Motley Fool owns shares of Ford. Eileen is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Companies Doing Well Despite Signs of Weakening Economic Growth originally appeared on Fool.com is written by Eileen Rojas.
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