Two Underappreciated American Icons

Value is getting harder to find in a market that has been in continuous rally mode for seven months. One area where I still see value is a couple of American manufacturing icons that do not get the coverage that, say, Saleforce.com (CRM) or Tesla (TSLA) receive despite their small sizes. Like the American economy and public, these companies have gone through changes over the past five years but are slowly emerging stronger than ever.

General Electric (GE) has done a solid job rightsizing its businesses since emerging from the financial crisis. The percentage of revenues and profits contributed by GE Capital has been reduced dramatically. That part of the business has also shrunken its balance sheet substantially. This has resulted in less volatility and risk in GE's earnings. In addition, it sold off its media businesses for some $17 billion recently. With some of the proceeds, the company increased its footprint in the energy sector by picking up Lufkin Industries (LUFK) for about $3.3 billion....409 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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