It’s earnings report time again and we’re starting to see which companies have been weathering the economic storm. Here are two examples of companies that are showing that they have both strong balance sheets and are a dominant force in markets that offer strong growth. See the full article for details:

CocaCola (symbol KO) has a strong balance sheet, pays a dividend of over 3%, and is showing huge growth worldwide in emerging markets. International sales now account for 80% of the company’s earnings, and it’s nice to see an example of a company that’s bringing home some of the money that we send to China. One factor that hurt CocaCola’s dollar-denominated earnings has been the relative strength of the dollar against the currencies of some of the markets it operates in. On the other hand, when the pendulum swings the other way, profits earned overseas will translate into more dollars, providing shareholders with some protection against a weakening dollar.

Apple (symbol AAPL) has done well over the past quarter, and the stock has almost fully recovered from the price drop that it suffered in the second half of 2008. The company’s iPhone has been a huge success, with demand for the newest version of the iPhone outstripping the company’s capacity to manufacture and ship them, a problem the company is working at correcting. Sales of iPods and the new MacBooks will also continue to contribute to Apple’s bottom line. As September approaches, it’s anticipated that MacBook sales will benefit from back-to-school purchases. Once again, Apple is an example of a company that supplies unique products that have heavy demand both domestically and abroad, and sells them with a substantial profit margin. Marketwatch quotes multiple analysts that predict Apple’s stock is likely to reach $200 or more per share.

Investments in stocks are subject to fluctuation, both up and down, and should be part of a balanced portfolio that incorporates a sell discipline that uses manual or automatic stop loss points to limit losses.