JPMorgan Chase & Co. (JPM), Wal-Mart Stores, Inc. (WMT): How to Go Big in a Bull Market

Wal-Mart Stores, Inc. (NYSE:WMT) currently trades at a 14.9 price-to-earnings multiple, and while that may be high for some, the company’s business is relatively non-cyclical as the great recession has had a limited affect on earnings. In fact, the company grew earnings every year for the 2005 through 2013 period. The company’s consistency in growth merits a higher valuation.

Wal-Mart Stores, Inc. (NYSE:WMT) has a compelling mix of growth, value, and income; not to mention you get the stability of a well-established retail operation.

Eating out

Everyone must include McDonald’s Corporation (NYSE:MCD) in an investment portfolio. The company is continuing to expand the number of its stores internationally even as it improves the overall dining experience within the United States.

The McDonald’s Corporation (NYSE:MCD) story is still compelling, and going forward the McCafe concept could steal some of the appeal that Starbucks Corporation (NASDAQ:SBUX) has. Either way, both Starbucks Corporation (NASDAQ:SBUX) and McDonald’s are non-cyclical, and both companies have a designated number of customers in a demographic region.

Investors should stay the course with McDonald’s. The company’s 17.9 earnings multiple is a bit high, but on the other hand, it has been able to grow its earnings consistently over the past five years. That being the case, analysts on a consensus basis anticipate this company to grow earnings by around 8.8% on average over the next five years. Plus it pays investors a 3.2% dividend yield for holding onto the stock.

It pays well to be an owner of McDonald’s.

Conclusion

I believe that owning shares of the biggest bank, retailer, and restaurant chain in the U.S. will translate into a solid investment decision going forward. Some may argue that the stock market is trading on thin ice, but even if it were, you want to own these three companies that live on solid ground.

The article How to Go Big in a Bull Market originally appeared on Fool.com and is written by Alexander Cho.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends McDonald’s. The Motley Fool owns shares of JPMorgan Chase & Co (NYSE:JPM). and McDonald’s. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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