AmerisourceBergen Corp. (ABC), Walgreen Company (WAG): Missed the Rally? 4 Stocks Worth Buying at All-Time Highs

VF Corp (NYSE:VFC)

VF Corp is a lifestyle apparel company that owns and operates iconic brands such as Nautica, the North Face, Timberland, and Vans in addition to more than two dozen other brands in market-leading categories. Timberland was purchased by VF Corp during summer 2011 in a deal valued at approximately $2 billion.

The Greensboro, N.C.-headquartered VF Corp (NYSE:VFC) is making fresh all-time highs in 2013 as the company has pursued a successful growth strategy based on acquisitions. Revenue at VF Corp has grown 15% in the last 12 months, while earnings have grown 22%.

Why have earnings grown at such an accelerated pace? The company’s gross margin and operating margins have expanded significantly in recent quarters, and management believes that further gains are in store based on economies of scale. Due to its large size, VF Corp is able to engage its suppliers in order to manufacture, source, and distribute its clothing and product lines at the lowest cost. This results in higher operating profits and ultimately greater earnings for shareholders.

Wall Street continues to view VF Corp favorably. D.A. Davidson & Co., an employee-owned investment firm headquartered in Great Falls, Mont., has a $191 price target and “buy” rating on the stock based on a strong brand portfolio and higher margins. The vaunted New York-based Goldman Sachs also has a “buy” rating and $200 price target on VF Corp.

Foolish Bottom Line

With the S&P 500 within a whisper of all-time highs, investors are becoming cautious about their investment portfolios and the likelihood of a broader market pullback. However, I’d encourage readers to differentiate their own portfolios based on companies where valuations can be justified.

Strong fundamentals still warrant the purchase of AmerisourceBergen Corp. (NYSE:ABC), CarMax, Inc (NYSE:KMX), VF Corp (NYSE:VFC), and Walgreen Company (NYSE:WAG) for long-term investors. I believe readers can buy these stocks at current levels even if the broader market begins to weaken.

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The article Missed the Rally? 4 Stocks Worth Buying at All-Time Highs originally appeared on Fool.com.

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