July’s better than expected U.S. employment report could lead to a rate hike, which might affect companies with high debt levels
SmallCapPower | August 8, 2016: Rising interest rates in the U.S. could impact the five U.S. large cap stocks on our list today, primarily due to their high debt to equity ratios.
Ford Motor Co (NYSE:F) – $12.08
Auto & Truck Manufacturers
Ford Motor Company (Ford) is a global automotive and mobility company. The Company’s principal business includes designing, manufacturing, marketing, financing, and servicing a line of Ford cars, trucks, sports utility vehicles (SUVs), and electrified vehicles, as well as Lincoln luxury vehicles. The Company operates in two sectors: Automotive and Financial Services.
- Market Cap: 47,996,749,698
- Revenues: 155,598,000,000
- Operating Income: 9,581,000,000
- Debt to Equity: 464%
Altria Group Inc. (NYSE:MO) – $66.62
Tobacco
Altria Group, Inc. is a holding company. Its subsidiaries include Philip Morris USA Inc. (PM USA), which is engaged in the manufacture and sale of cigarettes in the United States; John Middleton Co. (Middleton), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco, and UST LLC (UST), which through its subsidiaries, including U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd. (Ste. Michelle), is engaged in the manufacture and sale of smokeless tobacco products and wine. Its segments include smokeable products, smokeless products and wine.
- Market Cap: 130,165,791,787
- Revenues: 25,604,000,000
- Operating Income: 8,659,000,000
- Debt to Equity: 449%
Home Depot Inc. (NYSE:HD) – $136.05
Home Improvement Products & Services Retailers
The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serve three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
- Market Cap: 215,285,203.21
- Revenues:90,390,000,000
- Operating Income:12,254,000,000
- Debt to Equity: 336%
PepsiCo Inc. (NYSE:PEP) – $108.42
Non-Alcoholic Beverages
PepsiCo, Inc. is a food and beverage company. The Company, through its operations, bottlers, contract manufacturers and other third parties, is engaged in making, marketing, distributing and selling a range of beverages, foods and snacks, serving in over 200 countries and territories. The Company operates through six segments, namely, Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); North America Beverages (NAB); Latin America, which includes its beverage, food and snack businesses in Latin America; Europe Sub-Saharan Africa (ESSA), which includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa, and Asia, Middle East and North Africa (AMENA), which includes its beverage, food and snack businesses in Asia, Middle East and North Africa.
- Market Cap: 114,570,744.63
- Revenues: 62,173,000,000
- Operating Income: 8,239,000,000
- Debt to Equity: 279%
Caterpillar Inc. (NYSE:CAT) – $81.77
Heavy Machinery & Vehicles
Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three product segments: Resource Industries, Construction Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment.
- Market Cap: 47,772,583,670
- Revenues: 41,795,000,000
- Operating Income: 1,878,000,000
- Debt to Equity: 257%
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