Face-Off on Stocks: McDonald's, Caterpillar, Verizon [VIDEO]

McDonald's (MCD), Caterpillar (CAT) and Verizon (VZ) are all major American companies that play an influential role in our daily lives. But while you may (or may not) admire and respect them, should you covet their stocks?

Recently, many investors have been increasing their stakes in all three, helping to fuel the rise in the Dow Jones Industrial Average ($INDU) which has rallied 10% since the start of September. Investors have been enthusiastic thanks, in no small part, to strong third-quarter earnings from some of its biggest names. McDonald's, Caterpillar and Verizon all easily beat Wall Street's profit estimates last week, putting their shares oh-so-close to their respective 52-week highs.

McDonald's benefited from strong sales of specialty drinks and overseas growth, but currency headwinds and going up against its own tough comparisons could impede further share-price gains.

Caterpillar served up a beat-and-raise quarter, but after rallying 35% for the year-to-date, the valuation might be getting a bit stretched.

Verizon sports a steady 6% yield on its dividend, but payments to a partner could divert some of the gusher of cash coming out of its wireless business.

In the short video above, Dan Burrows and Nikhil Hutheesing face-off on the bull and bear cases of these three iconic companies.

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Robert & Lisa

The demoncrats take more and more from we the people, not realizing they, like parasites will eventually kill the host animal (our country) and as a result themselves. Stupidity reigns supreme.

October 28 2010 at 5:20 AM Report abuse -1 rate up rate down Reply
Robert & Lisa

The demoncrats take more and more from we the people, not realizing they, like parasites will eventually kill the host animal (our country) and as a result themselves. Stupidity reigns supreme.

October 28 2010 at 5:20 AM Report abuse rate up rate down Reply
lpi2007

If places like these don't lower their prices, I hope they all go out of business, they act like it 2000 and not 2010, things are different now and all they are doinf is buying into their own stocks so it looks like someone gives a damn, LOUISVILLE PARANORMAL INVESTIGATIONS are the cast of SHADOWS OF KENTUCKY now on the CW channel, check them out, they're HOT

October 27 2010 at 4:51 PM Report abuse -3 rate up rate down Reply
1 reply to lpi2007's comment
bdyftns

You're joking. McDonald's may be the #1 stock to own. It's their increasing sales, global market and new menu items that keep MCD going up and up. Down in today's trading...then back up past opening value in after hours trading. This is one stock I feel very good about, short and long run.

October 27 2010 at 5:42 PM Report abuse +5 rate up rate down Reply