General Electric, or GE, is one of the world’s largest conglomerates whose businesses are as diverse as many investors’ entire portfolios. GE trades for just 16.4 times earnings, with 12% forward growth projected. While the company does have a lot of debt ($236 billion as of the end of 2012), mostly from GE Capital, they do pay the best yield of the group at 3.24%. There is also some benefit to having so many streams of income in one company. GE’s filtration business is part of its Power & Water segment, which accounts for just fewer than 20% of the company’s sales.
While Pall may seem a little pricey, it still does make a very good long-term investment. The stability created by its healthy balance sheet, combined with high growth potential are a good combination for anyone’s portfolio. Of course, there is no harm in waiting to see if the share price pulls back a bit. With that in mind, pay particular attention to the company’s earnings call on May 30, and consider any negative surprise as a buying opportunity in a long-term winner.
The article Keep An Eye On This Filtration Company originally appeared on Fool.com and is written by Matthew Frankel.
Matthew is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.