In a recent video by Bloomberg, they found that the companies with the lowest working capital, smallest earnings overall, but the highest debt ratios are actually the biggest winners this year; climbing about 27 % percent on the year,
while companies with strong balance sheets have climbed less than 15 %.
The country has always believed that the long - term demand for oil outstripped supply, and that
for companies with strong balance sheets and a long - term view, now was the time to invest, not to withdraw.
Although this rally was marked by low quality stocks producing high gains, Mr. Royce believes that in the future investors will be more discriminating with their stocks and choose higher
quality companies with strong balance sheets.
Potenza has been finding opportunities in short - duration corporate bonds issued by relatively resilient, well -
run companies with strong balance sheets, improving credit profiles, and fair valuations.
Among potential buyers —
companies with strong balance sheets, but poor assets — Goldman pointed to Gazprom RU: GAZP Lukoil RU: LKOH Royal Dutch Shell RDSB, +0.29 % RDS.B, +0.68 % BP BP., -0.64 % BP, +0.07 % and Oil India 533106, +2.98 % Possible sellers include Afren UK: AFR Tullow Oil TLW, -2.95 % BG Group UK: BG and Diet Norske Oljeselskap NO: DETNOR
Dividend growers are typically supported by quality
companies with strong balance sheets and tend to hold up well in rising rate environments, according to BlackRock research.
Companies with strong balance sheets are exactly the types of stocks we're looking for as value investors.
Companies with strong balance sheets can buy back stock, issue dividends and buy competitors at distressed prices during economic downturns.
Equity and Income Fund Manager Mark DeVaul discusses his theme for searching out
companies with strong balance sheets and high return on capital.
Companies with strong balance sheets have the ability to withstand adverse conditions or unexpected challenges.
I look for high - quality companies that are undervalued, and
companies with strong balance sheets and low price to earnings (P / E) ratios.
With fixed income, go with investment - grade bonds (such as those issued by governments or
companies with strong balance sheets) or GICs backed by government deposit insurance.
I own Johnson Controls (JCI: NYSE) and Magna International (MGA: NYSE), two
companies with strong balance sheets that are picking up market share against weaker competitors.