Woolworths (WOW) Sourced from...

Woolworths (WOW) Sourced from http://www.thebull.com.au/articles/a/19759-14-defensive-stocks-looking-decidedly-oversold.html

Despite the GFC impact, Leaning says the PE contraction to around 15x is unwarranted. WOW is traditionally considered a core defensive holding of most portfolios based on a solid, reliable and predictable dividend reflecting its staple cash flows. But Leaning says investors should note that WOW is also offering 6.5 per cent EPS growth this year and in excess of 10 per cent annually over the next two years. He says an inspection of its performance over the past five years highlights a decreasing PE ratio, despite an increasing EBIT margin. With sellers running out of steam, he says the downtrend from the October 2010 high now looks to be in reverse. From a technical perspective WOW is Leaning�s top call which he says represents the best value defensive play suitable for all portfolios. �We believe that the stock has been building a base over the past few months and that is heading higher from here,� says Leaning. �The potential long-term upside price target is $30.00.�