Three Stocks for a Stock Market Apocalypse (CVC, TYC, GM)

Standard & Poors downgraded the outlook of the U.S. to Negative today. In light of this epic downgrade, Benzinga brings you some stocks to look at in case the stock market apocalypse starts today. Yep, Cablevision's Got Zombies First, zombies. One of the most recent, successful examples of the undead in popular culture is AMC's television series The Walking Dead. It premiered last Halloween and has already been nominated for a Golden Globe. AMC is one of the channels in Cablevision System's CVC stable. Cablevision reported solid results for 2010, a year in which it bought back shares, boosted its dividend, and sold off its Madison Square Garden unit. For the first quarter, analysts are looking for earnings to have jumped 38.1% from the same period of last year, as well as revenue that grew 8.6%. Cablevision reports first-quarter results May 5. Cablevision is the 8th largest cable provider in the U.S. In addition to AMC, it also owns the Sundance Channel, IFC Entertainment, Clearview Cinemas, and Newsday. Founded in 1973, the company is headquartered in Bethpage, N.Y. Cablevision plans to spin off its Rainbow Media subsidiary, as publicly-traded AMC Networks, later this year. Cablevision's long-range EPS growth forecast of 17.5% is higher than competitor Comcast's CMCSA. And its forward P/E ratio estimate of 17.2 is less than the trailing P/E, meaning that it's seen as an increasing bargain. Cablevision also has a PEG ratio of 0.9 and a dividend yield of 1.5%. Short interest in CVC has fallen since the beginning of the year to about 2% of the float. Despite a recent downgrade by Morgan Stanley, Cablevision retains its consensus buy recommendation. Analysts' mean price target is $38.00. Shares have traded between $38 and $34 since December, but they have outperformed the broader market. The share price also remains above the 200-day moving average. Preparing for the Coming of the Zombies with Tyco International The first step in preparing for a zombie apocalypse is to fortify your home. One of the biggest and best-known home security providers in the U.S. is ADT, a division of Tyco International TYC. Tyco provides security products and services, fire protection and detection products and services, and other industrial products to customers in 60 countries. Earlier this year, Tyco announced acquisitions in Australia and the United Arab Emirates. Talks of a possible buyout of Tyco by France's Schneider Electric seem to have ended late last week. On April 28, Tyco is expected to report fiscal second-quarter earnings that are 13.2% higher than a year ago. Looking ahead to the current quarter, the consensus EPS forecast so far calls for sequential and year-over-year growth. Tyco has topped consensus EPS estimates in recent quarters by as much as 12%. Tyco has a long-term EPS growth forecast of 12.7%, which is better than those of competitors General Electric GE and United Technologies UTX. The stock is trading at 18x earnings estimates, but that's in line with the industry average. The 1.3 PEG ratio suggestions overvaluation, though. Tyco's dividend yield is 1.7%. Insiders bought more shares in March than they sold. Short interest is less than 1% of the float. The share price spiked to a multi-year high of $53.38 last week on the takeover chatter. Whether the Schneider deal is dead remains to be seen. Other potential buyers are rumored to be interested if Tyco remains on the block. General Motors Takes the Show on the Road As Will Smith's character in I Am Legend (and many others) learned, no matter how well you fortify against the zombie apocalypse, sooner or later you end up on the run. A Hummer was the ideal vehicle in 2009's Zombieland. Unfortunately, General Motors GM eliminated the brand in 2010. However, GM does still offer the Cadillac Escalade, Chevy Tahoe, GMC Yukon, and other vehicles up to the challenge. Detroit-based GM came back from the dead (that is, emerged from taxpayer-funded bankruptcy) in November with one of the biggest IPOs in U.S. history. The automaker easily topped consensus EPS estimates in its first quarterly report following the IPO. For the three months that ended in March, analysts are looking for earnings of $0.93 per share on revenue of $35.6 billion. Note, however, that the earnings estimate was $0.98 per share 60 days ago. GM's long-term EPS growth forecast is 10.3%, which lags behind the EPS forecast of Ford F. Nevertheless, GM's forward P/E ratio estimate is 7.5, and its PEG ratio is 0.7, suggesting that the stock is undervalued. GM also has a return on equity of 19.1%. Analysts on average recommend buying the stock and have for more than 90 days. Their price target on the stock is currently $42.28 per share. However, shares are trading near their post-IPO low of $30.10. Like Ford, GM has significantly underperformed the broader market, as well as competitor Toyota TM, in recent weeks.