Companies with dividends and global sales, where demand is expected to grow faster than in the U.S., offer investors a way to obtain ROE in a current slow-growth, low-yield environment, says Mark D. Petrie, CFA, a Vice President and Director of Research at Hokanson Associates.
“We also prefer companies with a sustainable competitive advantage, such as scale, pricing power or market position. We want companies that are taking market share, growing faster than the underlying trend they are participating in,” he said. “The good news is there’s an abundance of stocks with these characteristics available in the market today.”
Petrie says NICE Systems Ltd. (NICE), an Israel-based provider of software and hardware for digital security and surveillance, is a play into the global security trend. NICE is a leader in call center technology that monitors and reports on fraudulent financial transactions, and is positioned to serve the growing demand in the sector.
“A variety of trends including a rise in global terrorism, growing populations and economic difficulties in many areas of the world have resulted in increased demand for intelligent surveillance,” he said. “Global businesses, airports, rail networks and government facilities around the world are expanding their security and surveillance budgets and upgrading to more complex systems with improved storage and retrieval capability.”
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