Courtesy of Motley Fool Money: 4 Great Investments

Josh is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

Religiously tuning in to The Motley Fool's Market Foolery and Motley Fool Money podcasts for just shy of a year, I have proudly become one of the "dozens of listeners" from all over the globe.  While each podcast is hugely informative, I find that the Motley Fool Money's "Stocks on Our Radar," is the ultimate cherry on the top of each weekly episode.  Here are my four favorite stocks recently mentioned on this segment of the show.

1) TD Ameritrade (NYSE: AMTD)

<table> <tbody> <tr> <td> </td> <td><strong>P/E & Forward P/E</strong></td> <td><strong>P/CF</strong></td> <td><strong>P/B</strong></td> <td><strong>10 Yr Rev Growth</strong></td> <td><strong>10 Yr EPS Growth</strong></td> <td><strong>Dividend %</strong></td> <td><strong>Cash/Debt</strong></td> </tr> <tr> <td><strong>TD Ameritrade</strong></td> <td>18 & 15</td> <td>7</td> <td>2.4</td> <td>14%</td> <td>13%</td> <td>1.9%</td> <td>$6.9B/1.4B</td> </tr> </tbody> </table>

Their Words:  Batting leadoff is discount broker TD Ameritrade, a company that is being watched closely by two separate Fools, Tim Hanson and Joe Magyer.  Both Tim and Joe acknowledge that the brokerage world has hit a lull in recent years, but seems to finally be picking up steam.  Tim points out that January's activity metrics showed a jump in customers trading assets, giving the company more cash to earn interest on.  With both analysts recognizing today's incredibly low interest rates, they see TD Ameritrade as a long-term trade to capitalize on future interest rate increases.

My Thoughts:  As interest rates go up, TD Ameritrade will earn more on its customers' idle cash, therefore potentially boosting its EPS significantly.  Between this potential profitability and the company's 1.9% dividend, I believe investors could be rewarded handsomely for investing and waiting for rates to rise.

2) Mondelez (NASDAQ: MDLZ)

<table> <tbody> <tr> <td> </td> <td><strong>P/E & Forward P/E</strong></td> <td><strong>P/CF</strong></td> <td><strong>P/B</strong></td> <td><strong>10 Yr Rev Growth</strong></td> <td><strong>10 Yr EPS Growth</strong></td> <td><strong>Dividend %</strong></td> <td><strong>Cash/Debt</strong></td> </tr> <tr> <td><strong>Mondelez</strong></td> <td>16 & 15</td> <td>10</td> <td>1.5</td> <td>6%*</td> <td>0%*</td> <td>1.9%</td> <td>$4..5B/19.4B</td> </tr> </tbody> </table>

* Derived from Kraft's revenue and EPS

Their Words:  Following yet another Joe Magyer watchlist selection, I have Mondelez as my second company.  Despite its "terrible name," Joe sees the company's spinoff from its parent company, Kraft, as an opportunity for shareholders.  Between its Oreo and Cadbury products, among many others, he explains that Cadbury is the biggest "chocolatier" in Asia -- a rapidly growing consumer market.

My Thoughts:  Having conducted a SWOT Analysis on Mondelez, I felt bullish because the company's new operations were the fastest-growing components of its former company with Kraft.  By shedding its less profitable operations, Mondelez has the ability to focus on international growth with some of its best selling items.  

However, the real reason for my excitement is that despite the spinoff of the company's new growth runways, it trades at cheaper valuations now than it did when it was incorporated with Kraft.  At a P/CF of 10 versus Kraft's five-year average of 13, I believe the market has not yet factored in Mondelez's potential, leaving it a quality buy for the long-term investor. Focusing on its international growth, as Joe mentioned, the company will be able to boost sales and deliver strong returns to its shareholders.

3) National Oilwell Varco (NYSE: NOV)

<table> <tbody> <tr> <td> </td> <td><strong>P/E & Forward P/E</strong></td> <td><strong>P/CF</strong></td> <td><strong>P/B</strong></td> <td><strong>10 Yr Rev Growth</strong></td> <td><strong>10 Yr EPS Growth</strong></td> <td><strong>Dividend %</strong></td> <td><strong>Cash/Debt</strong></td> </tr> <tr> <td><strong>National Oilwell Varco</strong></td> <td>12 & 10</td> <td>9</td> <td>1.4</td> <td>25%</td> <td>29%</td> <td>0.8%</td> <td>$3.3B/3.2B</td> </tr> </tbody> </table>

Their Words: After it popped up on Jason Moser's radar, he discovered that NOV was sold off recently because of margin concerns in its most recent quarterly earnings.  However, he sees the company's $12 billion backlog as a sign of brighter times -- and Berkshire Hathaway seems to agree.

My Thoughts:  Despite my fears of following the crowd, I found four major reasons why I believe NOV is worth a long-term investment: the company's most loved status on CAPS, recent buying from Berkshire Hathaway, its $12 billion backlog, and its acquisition of Robbins and Myers.  

In addition,  the company's initials are often referred to as "no other vendor." Its domination in the rig technology market has given NOV the makings of a great long-term investment.  

As CEO Merrill Miller proudly stated, "No rig currently operating exists without some type of our products." How is that for a moat?  Couple this with a forward P/E ratio of only 10 and EPS growth rates of 29% over the last decade, and I have found a company that I am excited to get into my personal portfolio.

4) Waste Management (NYSE: WM)

<table> <tbody> <tr> <td> </td> <td><strong>P/E & Forward P/E</strong></td> <td><strong>P/CF</strong></td> <td><strong>P/B</strong></td> <td><strong>10 Yr Rev Growth</strong></td> <td><strong>10 Yr EPS Growth</strong></td> <td><strong>Dividend %</strong></td> <td><strong>Cash/Debt</strong></td> </tr> <tr> <td><strong>Waste Management</strong></td> <td>21 & 16</td> <td>8</td> <td>2.7</td> <td>2%</td> <td>5%</td> <td>3.9%</td> <td>$200M/10B</td> </tr> </tbody> </table>

Their Words:  For my final company, we have James Early's selection of Waste Management, and its recent "mildly disappointing earnings."  Despite its struggles over the last few years, James sees an investment in the trash company as a way to play a future increase in construction.  While construction levels are currently low, he sees the 3.9% dividend as a great incentive to buy low and wait for an increase in demand.

My Thoughts:  After it recently announced that 85% of its newly purchased trucks would be fueled by natural gas, this slow and steady company has piqued my interest.  With the newly acquired trucks expected to pay for themselves in less than one year, Waste Management could see huge cost-cutting benefits, boosting shareholder EPS down the road.  Considering its new restructuring efforts, and a new fleet of cost-effective, natural gas-fueled trucks, the company appears to be off to a great start in minimizing its expenses.  

While a huge turnaround may not be imminent, Waste Management is making shrewd decisions and paying a dividend just shy of 4%.  Mix that in with the company's 20% reduction in shares outstanding over the last decade, and it is clear that this slow-moving behemoth is emphasizing shareholder value.

Foolish Final Thoughts

While Chris Hill makes it quite clear to never buy or sell stocks solely on what you hear on any of the Motley Fool podcasts, I am a firm believer in the fact that it is a great place to build your watchlist.  Having tracked these 4 companies over time, I have already placed outperform calls on the all through CAPS and expect them to beat the market soundly over a long-term investing horizon.  With each of them offering strong growth catalysts and reasonable valuations,  I see each company as a potential suitor for my own personal portfolio.


joryko has no position in any stocks mentioned. The Motley Fool recommends National Oilwell Varco, TD Ameritrade, and Waste Management. The Motley Fool owns shares of National Oilwell Varco and Waste Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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