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
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
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
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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Fool contributor Katie Spence thinks lumpy mattresses are uncomfortable and likes to keep her money in the market instead. She owns no shares of any company mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.