Invest In These 3 Chicago Companies

Chicago, Illinois, or, more commonly referred to as The Windy City, is home to the Bulls and the Blackhawks, the Bean and the Willis Tower, deep dish pizza and Chicago-style hot dogs. It's the third-largest city in the United States, and is home to a wide variety of companies in almost every industry. Chicago is a city with a little bit of everything, and perfect for investors new and old. Here's a look at three Chicago companies that would make a great addition to any investment portfolio.

Groupon Inc GRPN
Launched in 2008, Groupon is a global e-commerce marketplace that connects subscribers with local merchants by offering deals in travel, health and beauty, retail, events, food and drink, and many more services and activities. The company's first marketplace was Chicago, with Boston, New York City, and Toronto following soon after. Groupon filed its IPO in June 2011; their market debut was handled by Morgan Stanley, Goldman Sachs, and Credit Suisse. At the end of 2015's first quarter in March, Groupon is reportedly serving more than 500 markets worldwide, with 48.1 million active customers, and more than 425,000 active deals globally.

Potbelly Corp PBPB
A Chicago staple, Potbelly is a restaurant chain that offers hot sandwiches, salads, soups, smoothies, and dessert options like cookies, shakes, and malts, as well as breakfast options that include egg-based sandwiches, oatmeal, and bagels. The original restaurant, founded in 1977 by Peter Hastings, is located in the Chicago neighborhood of Lincoln Park at 2264 N. Lincoln Avenue. The space was previously an antique store, which provided the shabby chic aesthetic of each restaurant location. After being purchased in 1996 by Bryant Keli, the company quickly expanded and is now in 27 states and Washington D.C., as well as two franchised locations in Dubai and the United Arab Emirates. Its headquarters can be found in Chicago's Merchandise Mart. The company filed its IPO in 2013 and trades on the Nasdaq.

Boeing Co BA
The Boeing Company designs, manufactures, and sells airplanes, rotorcraft, rockets, and satellites. The company is among the biggest global aircraft producers, the second-largest defense contractor in the world, and the largest exporter in the United States by dollar value.  Boeing is organized into five primary sectors: Boeing Commercial Airplanes BCA; Boeing Defense, Space, and Security (BDS); Engineering, Operations, and Technology; Boeing Capital; and Boeing Shared Services Group. The company was founded in 1916 in Seattle, Washington, and their current headquarters is located in Chicago. In 2014, Boeing reported over $90 billion in sales and ranked #27 on Fortune Magazine's iconic "Fortune 500" list. The company went public in 1962, and its stock trades on the prestigious Dow Jones and the S&P 500.
 
A Statistical Comparison

	Groupon	Potbelly	Boeing
Zacks Rank	#3 (Hold)	#2 (Buy)	#2 (Buy)
Zacks Industry Rank	152/265 (Bottom 43%)	35/265 (Top 13%)	96/265 (Top 36%)
Projected EPS Growth	77.78%	27.27%	-0.80%
Net Margin	-1.56%	1.53%	6.29%
Debt/Equity	0.00	0.00	1.11
Price to Cash Flow	$33.09	$12.60	$12.31
Historic Cash Flow Growth	144.46%	NA	22.33%
Year over Year Growth Estimate	-8.33%	52.38%	-14.83%
Last EPS Surprise	0.00%	50.00%	8.84%

 
Based on these numbers, each company possesses both strengths and weaknesses. Despite its low Zacks Industry Rank standing and its -8.33% year over year growth estimate, Groupon is still a stock to seriously consider. Its projected earnings per share EPS growth for the next fiscal year is 77.78% in the green, and its historic cash flow growth, which is the growth rate over three to five years, is 144.46%, indicating that the company has a consistent history of positive cash flow growth. Investors should also keep their eye on Potbelly, who, at a Zacks Rank #2 (Buy) and in the top 13% on Zacks Industry Rank, shows great growth promise. The company boasts a projected EPS growth of 27.27%, a year over year growth estimate of 52.38% in the green, and an EPS surprise of an impressive 50.00% last quarter, all of which point towards a future of continued growth. Boeing, with its #2 (Buy) standing on the Zacks Rank and historic cash flow growth of 22.33%, is a company that has proven itself over time to be a good investment. Its last EPS surprise of 8.84% and net margin of 6.29% attest to that fact, and potential investors will not be disappointed with its almost-guaranteed high growth performance.

Bottom Line
Chicago is a city with great investing potential and companies that have proven to be solid portfolio additions. Groupon, Potbelly, and Boeing have either launched in The Windy City or have made the city their headquartered home. Investing in these companies means you are investing in the city of Chicago, home to innovation, inspiration, and most importantly, mouth-watering food.

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GROUPON INC GRPN: Free Stock Analysis Report
 
POTBELLY CORP PBPB: Free Stock Analysis Report
 
BOEING CO BA: Free Stock Analysis Report
 
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