JCI Buy at $25.82
CAT Buy at $80.oo
Buy INTC at $22.00
Johnson Controls Inc NYSE:JCI is yielding 2.59% with a low pe ratio of 11.06 at the time of this publication according to TD Ameritrade. This will be a new position in JCI if the stock ever hits my strike price of $25.82. JCI has a peg ratio of .6289 which is low compared to the auto parts industry. I believe the automotive industry is on a rebound worldwide as more people in the US need new cars as the average age of cars hit a record 10.8 years old in 2011.
Worldwide demand is growing for transportation as economies are bringing more of the population into a economic level where a car or small truck may be purchased. Additionally Johnson Controls is in every facet of our lives with HVAC systems and controls, energy management and overall far reaching engineering capabilities.
The stock got hit in July, if it gets hit again before the election I am sure to pick up my first 1/4 of my target position in JCI.
Caterpillar Inc. NYSE: CAT is yielding 2.36% and has a pe under 10 at the time of this publication according to TD Ameritrade. I already own 1/4 of my target position in CAT, this will add another 1/4%. Currently Credit Suisse and The Street have their highest ratings, Outperform and Buy respectively. CAT is undervalued with a PEG of .5631. Hopefully it will move even lower with more bad news from the world economic conditions hurting short term results. I expect CAT to trade in the low $100s once positive economic signs begin to appear.
Intel NYSE: INTC is yielding nearly three and three quarters percent. I own INTC in my trading account and my tax sheltered retirement account. I hope to add more at $22. per share for my retirement account. INTC has a low .95 peg ratio cheap compared to the industry 1.52 peg.
JP Morgan lowered its price target from $25 to $22 per share. The lagging PC sales are sure to disappoint this quarter too so a $22 price target is possible.
Next quarter with the launch of Windows 8 devices, along with the Christmas shopping season I expect INTC to bounce back to over $100 per share.