Friday, April 27, 2012

Value in Companies after taking a One Day Hit

Is it time to step in and buy these companies that have one day beat downs.

I have been watching the market as I always do and with earnings here we can expect some big gains and big losses depending if companies over or under perform. As I look out there today three great companies that are dividend growth stocks are being hit because of the news this quarter of not meeting or beating expectations. Is this extreme sell off really warranted though?

First is (RSG) Republic Services which is in the Waste Management Industry and Industrial Goods Sector. This stock is down $4.06 (13.02%) at the time of this writing because of an increase in sales but the company missed estimates on earnings. The last time the stock price was this low was in the lows of October. The next is in the Project Portfolio and a personal favorite (WM) Waste Management this stock is also in the Industrial Goods Sector. It is down $1.03 (2.92%) at the time of writing. I think this is more of a over reaction to the sector causing  this stock to fall. I see little reason for such a one day drop. Both these stocks go over 3% and 4% yields on the pullback making them very attractive. The last stock I wanted to mention is PG Procter & Gamble a well known stock in the Consumer Goods Sector. It was knocked down $2.81 (4.19%) and now yielding 3.5%. They had to cut estimate earnings from $3.88 to $3.82 a share.

It may not be the best idea to buy right after bad news but it can be a place to make an initial position if you have had any of these stocks on your watch list.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.  
I am long WM

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