The Coca-Cola Company (KO), WD-40 Company (WDFC): Finding the Fortress Companies the Buffett Way

The company has a 0.95 debt/cash ratio. Analysts are neutral on Verisign, Inc. (NASDAQ:VRSN) with 10 Holds, one Underperform, two Buys, and one Strong Buy with a median price target of $47. That doesn’t leave much upside and without a yield like the other two fortress stocks more susceptible to bear raids. They believe the company can grow EPS at a five year rate of 13.50%, and the PEG is at 1.44.

Verisign, Inc. (NASDAQ:VRSN) is a veritable cash flow machine generating cash per share of $5.75. The company is shareholder friendly with a $300 million buyback last year and a special dividend for investors usually around the holidays. It also has the best corporate governance risk rating of 1.

Storming the fortresses

I have to like WD-40 Company (NASDAQ:WDFC) the best as it has a great product with a moat, a yield, and great management.

What’s not to like about The Coca-Cola Company (NYSE:KO)? It’s a dependable performer as a consumer defensive and excepting growth investor, could be a core position in any portfolio. It is in Buffett’s portfolio as his second-largest position. Ride on Buffett’s coattails and pick up a slug of Coke stock on any market downturn.

Verisign, Inc. (NASDAQ:VRSN), at these levels, has too many ifs and untils and unlesses for my liking and would hold back from buying until it is below the Trefis level of $41.

AnnaLisa Kraft has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola.

The article Finding the Fortress Companies the Buffett Way originally appeared on Fool.com.

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