5 Corporate Giants at Wholesale Prices

Giant #2: General Electric (GE)

I made General Electric (GE) one of my Top 10 Stocks for 2009. The valuation of this long struggling giant was too tempting to pass up. You should give serious consideration to putting this gem in your portfolio.

Shares of GE were trading for a low price before the credit mess unfolded in the fall of 2008. Its exposure to lending gave investors pause and sliced another 50% in value from shares.

I’m smiling just thinking about the lunacy. We’re talking about GE, people. This company is one of the best-run businesses in the world, and you can now buy shares for $14. Are you kidding me?

GE pays a healthy dividend yield of nearly 8% at these levels. Shares trade for just 7 times trailing earnings and 10 times forward earnings. That is a bargain in my book. Granted, GE has stumbled of late, but I would not bet against the company that the great Jack Welch built. Growth will return, and when it does, GE will lead the way higher.

Next: Chevron (CVX)