The Home Depot, Inc. (HD), Kellogg Company (K): 2 American Icons to Buy, 2 You Should Be Selling

This great company will be a great stock again at some point, but for now, investors would be wise to avoid the shares. The stock was downgraded back in May to a “D” rating, and International Business Machines Corp. (NYSE:IBM) shares have retained their “sell” recommendation since then.

So it goes with The Coca-Cola Company (NYSE:KO). The distinctive outline of a The Coca-Cola Company (NYSE:KO) bottle defines America in many foreign countries, and it is the dominant soft drink company in the world. However, sales growth will be in the low single digits for the next few years as business conditions around the world remain soft.

Right now, not enough people want to buy the world a Coke for the fundamentals to improve substantially, so expect the stock to continue to lag. KO was recently downgraded to a “D,” and thus should be avoided or sold by growth-oriented investors.

The U.S. has seen some of the most revolutionary and important companies from inside its borders, and we have a reputation for the type of innovation and hard work that builds great companies. But in spite of their greatness, they are all subject to the cycles and whims of the economy. The fundamentals of these great companies will be in the sweet spot for investors at times and at others they simply will not be positioned for profits.

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