Go Dutch

Financial stocks used to be all the rage.  Then the market tanked.  But the reality is, it still takes money to make money, and no one does it better than the financial industry.  Deutsche Bank (NSYE: DB) is one of the best bang for your buck right now in the finance sector.  They are trading at a 4.8x multiple, significantly lower than any other publicly traded investment bank.  They also have a net profit margin of 17%. 17%!  Right now they are trading at their 52-week low, which is no surprise given the disgust everyone has for the industry.  So pick them up, who doesn't love going Dutch?

Buy the bully

If you can't beat them, join them. Microsoft (NYSE: MSFT) has been on the block for a long time, and isn't going away anytime soon.  When Microsoft had an IPO in 1986, they traded at $21 dollars a share.  Today they are back down to $24 a share.  At 11.x times current  earnings, they are a undervalued relative to competition.  Additionally, they have just increased their dividend payouts by 23%.  While they might not take over the entire world, they certainly have an impressive empire.

Ride the rails, ey

According to the Economist, America has one of the best freight rail infrastructures.  This is largely due to the lack of high speed people movers getting in the way.  While most in the U S of A don't take a train daily, most goods are transported for some distance on trains. As long as goods are being shipped, the rail companies make money.  Canadian National Railway (NSYE: CNI) connects the Atlantic, Pacific, and Gulf of Mexico with over 21,000 miles of routes.  So why buy them instead of any other rail company you've heard of (like CSX or Norfolk Southern)? 1) They are bigger. 2) They trade at a lower multiple. 3) They generate more earnings per share.  Plus, if you own them you are allowed to say 'ey' at the end of every sentence, just like a true Canadian.

The biggest in the world

Everybody has heard of Whirlpool (NYSE: WHR).  And after they adopted the Maytag man in 2006, Whirlpool became the largest appliance maker in the world.  With $20 billion in annual revenues, whirlpool is trading at just a 10.x multiple, and is an extreme value.  The stock is down 24% over the past two months amid lackluster sales.  The reality is, appliances break.  Efficiencies increase.  Styles change.  People upgrade.  You can't replace a refrigerator with an online version, you have to buy a new refrigerator;  which is why Whirlpool isn't going away anytime soon.  So collect your quarterly dividend (a 2.3x % current yield), and bide your time until Whirlpool rallies (again).

Because everyone is doing it (almost)

Alcohol.  Just about everyone drinks it.  While we have different tastes and preferences, one thing counts at the end of the day, we all spend money on it.  Which is why you can't go wrong buying Diageo (NYSE: DEO).  Diageo is a company that produces and distributes various brands including Smirnoff, Johnny Walker, Tanqueray, and Guinnesss.  Right now the stock is fairly priced, and has been a 'steady eddie' for years.  The reason Diageo is so successful?  The price of alcohol rises steadily over time,  but the amount you drink doesn't move inversely to price.  So while you are supporting Diageo in the aisles, you might as well share in the profits you are providing to them.