Zacks Investment Ideas Feature Highlights: Alumina Limited, Westpac Banking, BHP Billiton and Coca-Cola Amatil
CHICAGO, March 1, 2011 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: Alumina Limited (NYSE: AWC), Westpac Banking Corp (NYSE: WBK), BHP Billiton (NYSE: BHP) and Coca-Cola Amatil (OTC: CCLAY).
Invest in the Land Down Under
The Great Recession that severely affected economies around the world left Australia virtually unscathed. The country experienced just one quarter of negative GDP growth, which doesn't even fit the technical definition of a recession, and it actually managed to grow by 1.2% in 2009.
Its central bank has raised its key policy rate 7 times since late 2009 (it currently stands at 4.75%), and its unemployment rate is an enviable 5.0%. Moreover, its public debt as a percentage of GDP stands at just 22%, while other developed economies are rapidly approaching, or have already surpassed, the dangerous 90% level.
The world's smallest continent has a lot of things going for it, and savvy investors may want to consider these 4 great Australian stocks:
Alumina Limited (NYSE: AWC) is a leading resource company from Australia with a focus on alumina, the feedstock for aluminum smelting. It owns 40% of a joint venture with Alcoa called Alcoa World Alumina and Chemicals, which is the world's largest alumina producer.
Shares are trading at 17x forward earnings, in-line with the peer group. It also pays a dividend that yields 2.5%. Alumina is a Zacks #2 Rank (Buy) stock.
Westpac Banking Corp (NYSE: WBK) is Australia's oldest bank, established in 1817. It provides a broad range of financial services to retail and institutional clients.
Unlike many banks in the U.S. and Europe, Westpac managed produced solid financial results in 2008 and 2009 thanks to prudent lending.
The company pays a dividend that yields a hefty 6.1%. It is a Zacks #2 Rank (Buy) stock.
BHP Billiton (NYSE: BHP) is a diversified natural resource company headquartered in Melbourne. It is the world's largest mining company in terms of revenue and the world's third largest company measured by market cap.
Based on current Zacks Consensus Estimates, EPS is expected to grow 42% in 2011 and 45% in 2012. Valuation is attractive with shares trading at 15x forward earnings, a discount to the industry average of 17x. It sports a PEG ratio of 1.0.
The company pays a dividend that yields 2.0%. It is a Zacks #3 Rank (Hold) stock.
Coca-Cola Amatil (OTC: CCLAY) bottles and distributes The Coca-Cola Company (KO) soft drinks and other beverages.
Shares trade at 17x forward earnings, and its PEG ratio is a reasonable 1.7. It is a Zacks #2 Rank (Buy) stock.
The company pays a dividend that yields 1.6%. The Coca-Cola Company owns 30% of shares outstanding.
With tons of natural resources and one the freest economies in the world, Australia should continue to enjoy strong economic growth for years to come. These 4 stocks are a great way for savvy investors to capitalize on the growth in the Land Down Under.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.
Then when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros. In short, it's your steady flow of profitable ideas GUARANTEED to be worth your time. Get your free subscription to Profit from the Pros at: http://at.zacks.com/?id=7298
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here