Hot Defensive Stocks For 2014

On Wednesday, Procter & Gamble (NYSE: PG  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.

One of the peculiarities of the Dow Jones Industrial Average's (DJINDICES: ^DJI  ) bull run is that many of its more defensive components have participated in the rally. Procter & Gamble has soared to new highs recently as investors have overlooked some of its shortcomings and gravitated toward its healthy dividend yield and reputation for stability. Let's take an early look at what's been happening with Procter & Gamble over the past quarter and what we're likely to see in its quarterly report.

Stats on Procter & Gamble

Top 5 Healthcare Equipment Stocks To Watch Right Now: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Mike Deane]

  McDonald’s (MCD) announced a 0.5% rise in its global comparable sales for November, with a decrease in U.S. sales offset by an increase in sales overseas.

  The U.S. comps declined 0.8%, due to competition and flat industry traffic trends. In Europe for November, sales rose 1.9%, bolstered by sales in the U.K., �France and Russia. European sales made this small increase due to McDonald’s focusing on the pricing tiers of its menu, and promotional events. The company’s APMEA market (Asia/Pacific, Middle East and Africa) fell 2.8%, because of falling sales in Japan. The company is now “pursuing customer-focused initiatives that broaden accessibility and enhance value across all daypart,” according to its new release.

  McDonald’s President and CEO Don Thompson had the following comments about November’s sales: “Throughout the McDonald’s System we’re focused on satisfying our customers by providing a differentiated experience that delivers high-quality food and meaningful value in a comfortable and modern environment. As consumer expectations and the marketplace continue to evolve, we are making investments in our menu, restaurants and service to strengthen our connection with customers and build our business for long-term profitable growth.”

  McDonald’s stocks were down just 65 cents, or 0.67%, in pre-market trading Monday morning. YTD, the company’s stock is up 7.41%.

• [By abirk] and operates in approximately 34,000 restaurants in 120 countries around the world. Recently, most of the company's growth efforts has been concentrated abroad, and international growth has been booming.

  However, the company has the resources and innovative muscle to acclimate itself to the challenge. It now needs to exhibit the patience and determination to keep experimenting with its menu and alternative revenue streams to preserve its vaunted, decades-long success.

  Raining Dividends

  McDonald�� is a dividend rich company. The dividend has grown from $2.05 a share in 2009 to $3.12 for 2013, a CAGR of 11%. The payout ratio has crept up from 49% in 2009 to 56% (projected) in 2013, which still leaves the company plenty of room to grow their dividend.

  It is one of the highest-yielding stocks in the sector, and its current dividend yield is close to 3.4%. The company has a long history of growing its quarterly dividend, and its annual dividend increase comes after the third quarter of the year. At the moment, the stock pays an annual dividend of $3.24, up from $3.04 for the last year. Due to the solid dividend yield, the stock has attracted a large number of investors over the last few years.

  Partnership Plans

  McDonald�� Corp. is partnering with Kraft Foods Group Inc. (KRFT). to sell McCafe packaged coffee in U.S. grocery stores in various test markets. The coffee will be sold this year in whole-bean, ground and single-cup formats for use in brewers such as Green Mountain Coffee Roasters Inc. (GMCR)'s Keurig machines.

  McDonald�� has been selling its McCafe beverages in its restaurants for several years, an effort to compete with big java-selling chains such as Starbucks Corp (SBUX) and Dunkin��Brands Group Inc. (DNKN). The move has been one of McDonald�� more successful initiatives in recent years.

  Plans in India

  MCD has a relatively small market in India, so the beef-centric fast-food chain plans

• [By MONEYMORNING.COM]

  It's working with the three biggest credit card companies out there: American Express Co. (NYSE: AXP), MasterCard Inc. (NYSE: MA), and Visa Inc. (NYSE: V). And Apple also has forged relationships with such key retailers as McDonald's Corp. (NYSE: MCD), Macy's Inc. (NYSE:
  M), and Walgreen Co. (NYSE: WAG).

Hot Defensive Stocks For 2014: Caribou Coffee Company Inc.(CBOU)

Caribou Coffee Company, Inc. owns and operates coffeehouses. The company offers premium coffee and espresso-based beverages, as well as specialty teas, handcrafted beverages, foods, coffee lifestyle items, branded merchandise, and related products. It also sells whole bean and ground coffee to grocery stores, mass merchandisers, office coffee providers, airlines, hotels, sports and entertainment venues, college campuses, and online customers. In addition, the company sells blended coffees and licenses its Caribou Coffee brand to Keurig, Inc. for sale and use in its K-Cup single serve line of business. Further, Caribou Coffee Company franchises its brand to partners to operate Caribou Coffee branded kiosks and coffeehouses, as well as sells Caribou Coffee branded products to partners for resale in these franchised locations. As of July 3, 2011, it operated 407 company-owned coffeehouses located in 16 states and the District of Columbia; and 147 franchised coffeehouses in th e United States and international markets. The company was founded in 1992 and is based in Brooklyn Center, Minnesota.

Advisors' Opinion:

• [By Holly LaFon] ou Coffee is a gourmet coffee company that owns the second-largest number of coffeehouses in the U.S. After rising significantly in the second quarter of 2011, its stock price dropped in the fourth quarter, when Joel Greenblatt purchased it. He bought 52,794 shares at an average price of $13.27.

  The company has increased revenue and EBITDA almost every year since 2005, reaching $284 million and $22.4 million, respectively, in 2010. Its return on equity and return on assets also turned positive in 2009 and increased in 2010; return on assets increased from 10.1 percent in 2009 to 15 percent in 2010, and return on assets increased 6 percent to 9.2 percent in 2010. Free cash flow, which Greenblatt typically considers highly important, has been positive only two years since 2005, in 2008 and 2009.

  Cofeehouse sales have increased for the last eight quarters, including 4.1 percent in the quarter ended Oct. 2, 2011. Much of the company�� sales growth has come because it has begun selling food.

  The outlook for Caribou�� growth is also positive. Daily coffee consumption increased to 40 percent of 18-24 year olds in 2011 from 31 percent of the age group in 2010, returning to its 2009 level, according to the National Coffee Drinking Study from the National Coffee Association. Caribou recently began growing as well. In the third quarter of 2011, it opened three company-owned stores, its first in over three years, and in the fourth quarter, it opened five more. For 2012, it plans to open 55 to 70 new locations and issued fiscal year 2012 net sales growth guidance of 10 percent.

  Caribou�� P/E, P/S and P/B ratios:

  CBOU pe,ps,pb Interactive Chart

  See Joel Greenblatt�� portfolio here and also check out the Undervalued Stocks, Top Growth Companies, and High Yield stocks of Joel Greenblatt.

Hot Defensive Stocks For 2014: Noodles & Co (NDLS)

Noodles & Company, incorporated on December 19, 2002, is a casual restaurant concept offering lunch and dinner. The Company offers noodle and pasta dishes, staples of many cuisines, with the goal of delivering fresh ingredients and flavors globally under one roof from Pad Thai to Mac & Cheese. The Company�� globally inspired menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and sandwiches, which are served on china by its friendly team members.

As of May 28, 2013, including the 16 Company owned restaurants and one franchise restaurant opened in 2013. The Company opened 39 new company owned restaurants and six franchise restaurants. In 2012, the Company began using Your World Kitchen to describe the breadth of its offering and its customers' dining experience.

Advisors' Opinion:

• [By Jeremy Bowman]

  Noodles & Company (NASDAQ: NDLS  ) looks like the newest Wall Street darling. Shares of the fast casual concept jumped from the $18 IPO price two weeks ago all the way up to $51, before settling in the $40 range it trades in today. Among the more flattering comparisons the pasta chain has received is that it's the "next Chipotle (NYSE: CMG  ) ," the burrito chain whose shares are up about 800% since its 2006 IPO.

Hot Defensive Stocks For 2014: Market Leader Inc(LEDR)

Market Leader, Inc., together with its subsidiaries, provides software-as-a-service-based business and marketing solutions for real estate professionals primarily in the United States and Canada. It offers real estate agents and brokerage companies with software-as-a-service based products, as well as online lead-generation, online prospect management, online real estate portal content and advertising, and customer coaching and training solutions. The company also offers consumers with free access to the information and tools they need throughout the home buying and selling process through its national consumer real estate sites. Its consumer Web sites include: JustListed.com, a service that notifies home buyers as soon as new homes hit the market; HouseValues.com, a service, which provides home sellers with market valuations of their current homes; and HomePages.com, a real estate portal that enables consumers to see the home listings in their area, view detailed neighbor hood and school data, compare recent home sales, find local real estate agents, and find the value of their own homes. In addition, the company offers Growth Leader, a Website and customer relationship management tool for real estate agents; RealtyGenerator, a lead-generation and lead management system for real estate brokerage offices; and ActiveRain.com that provides professional networking, referral, recruitment, content syndication, and online marketing services for professionals in real estate and related businesses. Market Leader, Inc. markets its products to individual agents and brokerage offices directly, as well as through marketing partnerships with real estate franchise networks. The company was formerly known as Housevalues, Inc. and changed its name to Market Leader, Inc. in November 2008. Market Leader, Inc. was founded in 1999 and is headquartered in Kirkland, Washington.

Advisors' Opinion:

• [By Michael Lewis]

  For a bit of context, competitor Trulia (NYSE: TRLA  ) is in negotiations to buy Market Leader (NASDAQ: LEDR  ) for $355�million. Market Leader is a smaller (and growing) business that's similar to both Zillow and Trulia. Since Market Leader is still earnings negative, we can't compare it on a P/FCF basis, but we can look at other metrics. For one, Market Leader trades at a still-ridiculous-but-slightly less-so 57.2 times forward earnings. It trades at 6.4 times last year's sales. Zillow trades at 16.4 times last year's sales. Management expects sales to hit (on the high end) $182 million -- that implies a price of 10.55 times forward sales. If they double a year or two after, which would be unbelievably phenomenal, it would trade at 5.3 times sales.