Aside from what it has going for it presently, another huge factor that makes Ford Motor Company (NYSE:F)a great investment is its management. Alan Mulally has consistently kept the company on the right track since the recession. He had the forward thinking to secure loans before the recession to avoid government bailouts, and continues to have this forward thinking for Ford’s entire operation. Using that thinking, Ford is way ahead when it comes to attracting the next generation of customers to its vehicles. Ford has a lot going for it; take advantage of the recent pullback, and get into a solid company at a good price.
Next up
Priceline.com Inc (NASDAQ:PCLN) has done well outmaneuvering its rival Expedia Inc (NASDAQ:EXPE) by focusing on the Europe and Asia travel markets, through acquisitions, all the while creating a strong brand image. The company’s financials are a role model of what you want to see. It’s free cash flow consistently increases, as does its top and bottom lines, all while keeping healthy margins. It’s grown revenue at an annual rate of 31% over the last five years, compared to the numbers in the teens for its rival Expedia. It boasts impressive margins over the industry average, which investors love, because it takes more of every dollar to the bank. Its operating margin sits at a healthy 34.8% versus the industry average of 13.4%. Its net margin, at 26.8%, is just as impressive, compared to the industry average 9.1%.
Management has shown an ability to sustain growth in original markets, while it plans to make inroads in new territories in Australia and New Zealand. The rising disposable income in emerging markets also offers reason for optimism to Priceline.com Inc (NASDAQ:PCLN) investors. Don’t let the high stock price scare you away; it’s a silly mental factor. There is still plenty of room to fly for this stock, as Priceline.com Inc (NASDAQ:PCLN) only represents a fraction of global bookings.
Bottom line
Everyone wants to hit the home run 10-bagger, and I wish it were that easy. Sometimes, we just have to sit back and realize that buying $1.00 for $0.50 is the best approach. That’s exactly what Ford Motor Company (NYSE:F) and Priceline.com Inc (NASDAQ:PCLN) can offer: a stable company with great management and plenty of upside. That’s how you make a market-beating portfolio, and I think these prices are still very fair, if not slightly undervalued. I also believe Liquidity Services, Inc. (NASDAQ:LQDT) is a company that was victim of a classic market overreaction, and provides an opportunity for significant gains going forward. Keep an eye on these companies starting in March; I don’t think you’ll be disappointed!
The article 3 Strong Buys for March originally appeared on Fool.com.
Fool contributor Daniel Miller owns shares of Ford and Liquidity Services. The Motley Fool recommends Ford, Liquidity Services, and Priceline.com. The Motley Fool owns shares of Ford and Priceline.com.
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