2014 Will Be Great for Boring Stocks

2013 was a great year for high growth stocks with little profit. The S&P 500's P/E ratio is up from 17.5 a year ago to 18.9 today, because while stock prices went up earnings didn't. This year the rubber hits the road, and companies will have to prove they'll make money for investors long-term. 

The upside for investors is that they can still get great values on stocks the market overlooked this past year. DuPont (NYSE: DD  ) trades at just 12 times earnings, Intel (NASDAQ: INTC  )  has a 14 multiple, and Microsoft (NASDAQ: MSFT  ) trades for 13 times earnings. That's before taking out cash hoards at the latter two, which make them even more valuable.

Erin Miller sat down with Travis Hoium to see why these overlooked and downright boring stocks are where investors want to be this year.

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  • Report this Comment On January 22, 2014, at 12:01 PM, funfundvierzig wrote:

    DuPont is one of those "great values" investors can still get?

    Over the next 18 months, DuPont Management will be caught up in the turmoil and tumult of ditching two centuries of core competency in chemicals, and dividing up this unwieldy conglomerate and its bureaucracy into pieces. What remains of the shrunken DuPont, largely the various businesses of DuPont AG & NUT, will likely suffer a substantial decline in revenues and earnings, sans Teflon, TIO2, acids, refrigerants, vinyls, glass, and other sundry chemicals and related materials.

    The value of DD in the mid-60's is highly questionable in our humble opinion...funfun..

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