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With the high market volatility of the past few years and the recent reports of a slowdown in the economic recovery, many investors might be starting to feel the "sell" panic. You know the feeling: The market looks bleak, prices seem to continue dropping, and you're starting to consider the value of hiding your money under your mattress. The duck-and-cover route may feel like the best solution given the circumstances, but let me tell you why now is the time to buy, rather than sell, the following companies.
Joy to the G
Joy Global (Nasdaq: JOYG ) has been manufacturing and servicing mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals since 1884. Since March 2009, Joy Global's stock has gone from $20 to $103 per share. However, with concerns of a global slowdown affecting cyclical companies like Joy Global, shares have taken a beating and currently hover around $90.
This is great news for investors looking to get into the company at a discount. Right now, Joy Global's P/E ratio is 18.30. Compared with competitors Bucyrus International (Nasdaq: BUCY ) , at 22.37, and Caterpillar (NYSE: CAT ) , at 18.52, Joy Global looks like a bargain.
More promising signs? Joy Global has more than $417 million in net cash on its balance sheet, net income has steadily increased since 2008, long-term debt has steadily decreased since 2008, and sales are expected to grow by 15.6% over the next five years. Not too shabby if you ask me.
Wringing out the dirty laundry
Whirlpool (NYSE: WHR ) is another company that's faced turbulent stock prices. As investors worry that an economic slowdown will affect cyclical companies like Whirlpool, stock prices have dropped from a high of $118 per share in April to less than $74 in June. But luckily for investors, Whirlpool has a number of things working in its favor.
At the moment, Whirlpool has a P/E ratio of 10.06, which, compared with competitor Electrolux's (OTC BB: ELUXY.PK) 23.91, definitely looks cheap. Plus, since 2008, Whirlpool has grown its net income from $418 million to $619 million in 2010 and has a debt-to-equity ratio of 54.86.
In addition, Whirlpool's five-year expected sales growth is 9.40%. And even better, Whirlpool pays a dividend yield of 2.6% -- pretty good compared with the average 1.5%. That's great news for investors looking for a cheap dividend stock.
Ignore the siren call
Yes, the stock market has taken a beating over the last few years, and yes, there are valid concerns of a slowdown in the economic recovery. But that just means some stocks are trading at rock-bottom prices and now might be the time to buy in.
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