Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Google Inc (GOOG): The BRICS and the Bathwater

The company is very profitable and in healthy financial position. It has a profit margin of 10.8% and a ROI of 27.7% is strong. The recent Chinese chicken scare cut the company’s quarterly income, so its P/E ratio around 24 should be taken with a grain of salt. In the coming year Yum! China’s income and sales will stabilize, boosting total income and bringing its P/E ratio down.

Conclusion

In many countries the middle class continues to grow, even as overall growth rates fall. In recent decades the world witnessed a huge commodity boom. Now it is time to invest in popular consumer products with attractive price points. Google Inc (NASDAQ:GOOG) and Yum! Brands fit the bill. ARM Holdings plc (ADR) (NASDAQ:ARMH) is another good company to consider, but it is better to wait until its valuation comes down.

Joshua Bondy has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google.

The article The BRICS and the Bathwater originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.