September has historically been the worst month for stocks. Thus, investors should rethink their portfolio to include robust, stable-producing equities, which are likely to weather a possible storm. A company’s ability to grow its net income, while also providing a double-digit average Return on Equity for a number of years, should be a stock that will outperform during downturns in the market, and this could include the companies on our list.
Goodyear Tire & Rubber Co (NASDAQ: GT) – $30.01
Tires & Rubber Products
The Goodyear Tire & Rubber Company is a manufacturer of tires. The Company’s business is the development, manufacture, distribution and sale of tires and related products and services throughout the world. The Company operates in four segments: North America; Europe, Middle East and Africa (EMEA); Latin America, and Asia Pacific.
- Market Cap: $8,019,995,101
- Total Revenue (LTM): $17,209,000,000
- Net Income CAGR (2 years): 226.1%
- ROE (average, 3 years): 65.2%
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Boeing Co (NYSE: BA) – $127.93
Aerospace & Defense
The Boeing Company, together with its subsidiaries, is an aerospace company that operates through five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital (BCC).
- Market Cap: $88,796,422,151
- Total Revenue (LTM): $94,944,000,000
- Net Income CAGR (2 years): 18.1%
- ROE (average, 3 years): 57.9%
MasterCard Inc. (NYSE: MA) – $88.89
Business Support Supplies
MasterCard Incorporated is a technology company in the global payments industry. The Company connects consumers, financial institutions, merchants, governments and businesses around the world, enabling them to use electronic forms of payment instead of cash and checks. The Company’s brands include MasterCard, Maestro and Cirrus. It provides offerings, such as loyalty and reward programs, information services and consulting.
- Market Cap: $104,572,190,153
- Total Revenue (LTM): $9,539,000,000
- Net Income CAGR (2 years): 14.5%
- ROE (average, 3 years): 45.7%
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W. R. Grace & Co (NYSE: GRA) – $100.27
Specialty Chemicals
W.R. Grace & Co. (Grace) is engaged in the production and sale of specialty chemicals and specialty materials on a global basis. The Company operates in three segments: Grace Catalysts Technologies, which includes catalysts and related products and refining, petrochemical and other chemical manufacturing technologies; Grace Materials Technologies, which includes packaging technologies and engineered materials, and Grace Construction Products, which includes specialty construction chemicals and specialty building materials.
- Market Cap: $7,156,844,886
- Total Revenue (LTM): $3,163,200,000
- Net Income CAGR (2 years): 160.1%
- ROE (average, 3 years): 45.2%
Home Depot Inc. (NYSE: HD) – $112.98
Home Improvement Products & Services Retailers
The Home Depot, Inc. (The Home Depot) is a home improvement retailer with stores that sell an assortment of building materials, home improvement products and lawn and garden products and provide services. The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. 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: $149,546,671,133
- Total Revenue (LTM): $85,398,000,000
- Net Income CAGR (2 years): 18.3%
- ROE (average, 3 years): 39.7%
Source: Thomson Reuters
Net Debt = Total Debt – Cash and Short Term Investments
LTM – Last Twelve Months
LFQ – Last Fiscal Quarter
Y/Y – Year over Year
YTD – Year to Date
