When scanning the market for value, it's easy to fall prey to lofty dividends and low multiples given by declining and mismanaged businesses. The better move is to find companies that provide a steady balance of responsible management, dividend yields, and growth prospects. Caterpillar (NYSE: CAT), FedEx (NYSE: FDX), and Southwest Airlines (NYSE: LUV) all have significantly below-market-average valuations and have underperformed the market in 2019, opening the door for value investors to take a look.
The biggest of the three, Caterpillar, is known for its farm and construction equipment. Lesser known but making up a good deal of the company's business are diesel and natural gas engines, transmissions, pumps, and generators for the marine and oil and gas industry. Caterpillar's global dealership network covers 21 industries and services six continents.
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Source: Motley Fool
(September 11, 2019 - 8:00 AM EDT)
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