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In the most recent Investment Research report by UBS, the bank’s analysts has constructed a list of top quality stocks around the world.The factors used by UBS to determine quality stocks include strong returns on capital, use of leverage, and an emphasis on the strength and sustainability of a company’s earnings.
“Our process is aimed at identifying strong, reasonably valued companies that generate solid growth and cash flow, and demonstrate a willingness and ability to return capital to shareholders.”
This list contains 14 American stocks that UBS lists as quality stocks, and the companies are from a number of a different sectors.
Expected 2012 P/E: 11.9x
Staples operates as an office products company. It is headquartered in Framingham, Massachusetts and was founded in 1986.
Expected 2012 P/E: 15.8x
McDonalds franchises and operates McDonalds restaurants throughout the world. It was founded in Oak Brook Illinois in 1940.
Expected 2012 P/E: 13.5
Darden Restaurants operates full service restaurants in the United States and Canada, including Red Lobster, Olive Garden, and The Capital Grille, among others. It was founded in 1968 and is headquartered in Orlando, Florida.
Expected 2012 P/E: 15.7x
H.J Heinz manufactures and markets food products for consumers and restaurants worldwide. It was founded in Pittsburgh, Pennsylvania in 1869.
Expected 2012 P/E: 8.0x
Chevron engages in energy operations worldwide in two segments, Upstream and Downstream. It was founded in 1879 and is headquartered in San Ramon, California.
Expected 2012 P/E: 5.7x
HollyFrontier operates as an independent petroleum refiner and marketer in the United States. It was founded in 1947 and is based in Dallas, Texas.
Expected 2012 P/E: 12.4x
Abbott Laboratories engages in teh sale of health care products worldwide. It was founded in 1888 and is headquartered in Abbott Park, Illinois.
Expected 2012 P/E: 13.1
Johnson & Johnson manufactures and sells various products in the health care field worldwide. It was founded in 1886 and is based in New Brunswick, New Jersey.
Expected 2012 P/E: 13.2x
United Technologies provides technology product sand services to building systems and aerospace industries worldwide. It was founded in 1934 and is based in Hartford, Connecticut.
Expected 2012 P/E: 10.0x
PACCAR designs and manufactures trucks and related aftermarket parts worldwide. It was founded in 1905 and is based in Bellevue, Washington.
Expected 2012 P/E: 12.0x
Illinois Tool Works manufactures various industrial products and equipment. It was founded in 1912 and is based in Glenview, Illinois.
Expected 2012 P/E: 9.6x
Intel manufactures and sells integrated digital technology platforms. It was founded in Santa Clara, California in 1968.
Expected 2012 P/E: 11.2x
Microsoft develops and supports a range of software products and services for computing devices worldwide. It was founded in 1975 and is based in Redmond, Washington.
Expected 2012 P/E: 19.6x
ADP provides business outsourcing solutions. The company was founded in 1949 and is headquartered in Roseland, New Jersey.