GE is a better bargain than IBM with a higher yield of 3.30%, a forward P/E of 12.89, and a PEG of 1.27. The company is shareholder friendly with $18 billion returned to shareholders in 2012 with share repurchases and dividends. It hasn’t yet returned to pre-recession highs in the low $60s.
The great and powerful Oz (I mean Google)
Google Inc (NASDAQ:GOOG) is into all kinds of interesting but as yet impractical stuff (Google Glass, self-driving cars) besides its bread and butter, search. Speaking of cars, where are the flying cars, I ask you? If Tesla, the machines not the man, and Google teamed up I guarantee we’d have flying cars.
Google Inc (NASDAQ:GOOG) is that kind of innovator, in the cloud, with Android, tablets, and more. But the argument as always is… has Google lost its focus with so many ventures and a slew of large competitors in each: Apple Inc. (NASDAQ:AAPL), Yahoo! Inc. (NASDAQ:YHOO), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and eBay to name a few.
Google also made the Fast Company list of Most Innovative companies in the robotics category. Google attracts the best and brightest as the best company to work for; so much so the comedy “The Internship” debuting in June revolves around Googleplex culture. Due diligence on Google can be daunting with frequent headlines as this tech conglomerate keeps pushing the envelope on so many projects.
At over $900 and up 48.05% over the last year Google Inc (NASDAQ:GOOG) is priced to perfection here. Its trailing P/E is 27.20 with a forward P/E of 17.10. Its PEG is higher at 1.32 but not outrageous and is the same as the S&P 500’s PEG.
An even bigger bang!
These three deserve a place on Big Bang Island but for upside the bigger bang for your buck would be GE with high yield and as a play on fracking and infrastructure. IBM hasn’t moved much this year, has a yield, and is a Buffett name.
Google Inc (NASDAQ:GOOG) is only a few dollars away from its median price target but may be the biggest dreamer (in a good way) of all three. And if Page ever pulls off this project I hereby nominate myself as Mary Ann or Penny.
The article The Big Bang Island Theory originally appeared on Fool.com and is written by AnnaLisa Kraft.
AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of General Electric Company, Google, and International Business Machines. AnnaLisa 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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