The 9 Best Rule Maker Stocks

We asked our Foolish analysts to pick their favorite Rule Maker, and the results were surprising. While some of the usual suspects like Coca-Cola and Cisco did make the list, newcomers MGM Mirage (NYSE: MGM  ) and First Data (NYSE: FDC  ) emerged as leaders in their respective industries. Google (Nasdaq: GOOG  ) , once a quintessential Rule Breaker, now apparently makes the rules in Internet search and advertising.

Perhaps the biggest surprise is who didn't make the list. No one supported perennial powerhouses Dell (NYSE: DELL  ) , Intel (Nasdaq: INTC  ) , and Microsoft (Nasdaq: MSFT  ) . Are these stalwarts losing their lead over their competitors? This chart suggests that may be the case.

For those new to the game, here's what we look for in a quality Rule Maker company:

  • Strong, well-known brands.
  • Mass-market products or services that are purchased repeatedly.
  • High margins and sales growth.
  • Strong balance sheet and low debt.
  • Discounted stock price.
  • Expanding possibilities.

These traits lead us to companies with sustainable competitive advantages and high returns on capital, providing us (hopefully) with long-term outperformance. Read the arguments below to determine which company is the best Rule Maker.

Coca-Cola, Dell, First Data, Intel, and Microsoft are Motley Fool Inside Value recommendations. Discover more Rule Maker stock ideas with a free 30-day trial subscription.

Dell and Disney are Stock Advisor recommendations.

Joey Khattab does not own shares of any of the companies mentioned. The Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (95)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 524052, ~/Articles/ArticleHandler.aspx, 8/22/2014 3:59:03 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement