Bob Olstein, chairman and CIO of Olstein Funds, is known as one of the leading experts in corporate disclosure and reporting practices. He wrote an incredible book, The Quality of Earnings, which helped push the use of forensic accounting techniques to identify certain factors in determining a company's future earnings power. (I highly recommend this book.)
Olstein gives his take on "boring" stocks and how much money they can make in free cash flow. This will translate into investment returns over time.
He has been long Zoetis (ZTS, Financial) for awhile. And if you remember, Bill Ackman (Trades, Portfolio) recently initated an activist campaign against this business.
He also discusses Macy's (M, Financial), Kohls (KSS, Financial), ABM Industries (ABM, Financial), Oracle (ORCL, Financial) and Marsh McLennan (MMC, Financial).
See what he says about IBM (IBM, Financial)...
Macy's was founded in 1830 and sells merchandise, such as apparel, cosmetics, home furnishings and other consumer goods in virtually all U.S. states and territories. Macy's has a market cap of $21.74 billion; its shares are trading around $61.57 with a P/E ratio of 15.30 and P/S ratio of 0.82. The dividend yield of Macy's stock is 1.83%. Macy's has an annual average earnings growth rate of 44.60% over the past 5 years.
Click here for more on which Gurus own (M, Financial)
Kohl's was founded in 1962 and operates department stores that sell moderately priced exclusive and national brand apparel, footwear, accessories, beauty and home products. Kohl's has a market cap of $11.85 billion; its shares are trading at around $57.91 with a P/E ratio of 14.20 and P/S ratio of 0.70. The dividend yield of Kohl's stock is 2.60%. Kohl's has an annual average earnings growth rate of 7.30% over the past 10 years.
Click here for more on which Gurus own (KSS, Financial)
ABM Industries (ABM, Financial)
ABM was founded in 1909 and provides integrated facility solutions to thousands of commercial, governmental, industrial, institutional, residential and retail facilities in hundreds of cities throughout the U.S. ABM has a market cap of $1.53 billion; its shares are trading at around $27.43 with a P/E ratio of 21.60 and P/S ratio of 0.30. The dividend yield of ABM stock is 2.30%. ABM has an annual average earnings growth rate of 5.10% over the past 10 years.
Click here for more on which Gurus own (ABM, Financial)
Oracle was founded in 1977 by Larry Ellison and develops, manufactures, markets, hosts and supports database and middleware software and storage products for IT environments. Oracle has a market cap of $177.87 billion; its shares are trading at around $40.14 with a P/E ratio of 16.70 and P/S ratio of 4.77. The dividend yield of Oracle stock is 1.20%. Oracle has an annual average earnings growth rate of 18.40% over the past 10 years.
Click here for more on which Gurus own (ORCL, Financial)
Marsh McLennan (MMC, Financial)
Marsh McLennan was founded in 1871 and provides advice and solutions in the areas of risk, strategy and human capital. Marsh McLennan has a market cap of $30.3 billion; its shares are trading at around $56.02 with a P/E ratio of 21.10 and P/S ratio of 2.40. The dividend yield of Marsh McLennan stock is 1.90%. Marsh McLennan has an annual average earnings growth rate of 19.70% over the past 10 years.
Click here for more on which Gurus own (MMC, Financial)
IBM was founded in 1911, and creates value for clients and solves business probalem through integrated solution that leverage information technology and knowledge of business processes. IBM has a market cap of $160.25 billion; its shares are trading at around $161.92 with a P/E ratio of 13.30 and P/S ratio of 1.70. The dividend yield of IBM stock is 2.60%. IBM has an annual average earnings growth rate of 14.90% over the past 10 years.
