5 Best Breakout Retail Stocks To Invest for February in 2012

For months, investors have been preparing for an all-out meltdown in the markets as the problems in Europe have grown. While there haven’t been any all-clear signals from the continent, investors are starting to figure out that the market may be able to march higher despite the ongoing concerns. As a result, stocks started February where they left off in January.

Our research shows that the retail sector tends to outperform the market more than twofold when a recovery is under way. That makes sense as improvements in the economy result in better consumer sentiment, which results in more spending, which ultimately drives the retail sector higher.

Looking at the last five years of returns, the SPDR S&P Retail ETF (NYSE:XRT) has had a tendency to outperform the 5 Best Breakout Retail Stocks To Invest for February in 2012 - SPDR S&P 500 ETF (NYSE:SPY) in February. For the month, XRT posted positive returns four out of five years, while the SPY was only able to move higher in two of the past five years. The table below displays the returns for the past five years for both ETFs.

February Performance

Year	SPDR S&P 500 ETF (% CHANGE)	SPDR S&P Retail ETF (% CHANGE)
2007	-2.0	0.1
2008	-2.6	-6.7
2009	-11.4	0.7
2010	3.1	7.5
2011	3.4	5.8

We’re expecting the retail sector to hammer the rest of the market this February since the group has a great advantage over other sectors: As of the close of January, the XRT has the highest percentage of companies breaking through to new 12-month highs. As we know, new highs always attract investors, making the retail sector and XRT shares a target for outperformance this month.

Here are the details: As of January’s close, 21% of the companies that make up the XRT were breaking through to new 12-month highs. To put that into perspective, only 9% of S&P 500 companies and just 14% of the recently hot Nasdaq 100 companies can say the same. We like the odds that the market will flock to these breakout stocks, so which ones appear ready to roll even higher in February?

5 Best Breakout Retail Stocks To Invest for February in 2012 - Advance Auto Parts (NYSE:AAP): Auto-parts companies such as Advance, Autozone (NYSE:AZO) and O’Reilly Automotive (NASDAQ:ORLY) have been on a tear as the do-it-yourselfers roll up their sleeves to work on their cars. We like all of these companies to outperform the market in February despite the high short interest and low analyst ranks on AAP. (Only 22% of the analysts covering the stock have it ranked a buy.) If that wasn’t enough, short sellers have been piling on their bearish positions. With a short-interest ratio of nearly 8, the stock is ripe for a short covering rally. This stock has more upside potential since the AAP bears will start to capitulate and turn into buyers.

5 Best Breakout Retail Stocks To Invest for February in 2012 - Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR). Discounters such as Dollar General and Dollar Tree continue to attract shoppers to their stores as consumers look to stock their shelves for less. While the economy might be performing better, we don’t expect shoppers to abandon their frugal ways, which means these stores will stay busy. Lately, the shorts have been increasing their positions here, calling a top for these stocks. History tells us that this means there’s more room for these stocks to run higher.

5 Best Breakout Retail Stocks To Invest for February in 2012 - Ross Stores (NASDAQ:ROST). Following the discount theme is Ross Stores — the chain sells discounted apparel, accessories, footwear and home fashions. The company is expected to announce earnings growth of more than 20% (year-over-year) in March, which should get the analyst community’s attention. Right now, only 42% of the analysts covering the stock have ranked it a “buy.” The Street loves to recommend stocks that are making new highs.

Wal-Mart Stores (NYSE:WMT). Wal-Mart recently got some of its swagger back — the retail giant is starting to outperform the market again. For years, WMT was the poster child for “overloved stocks” as over 90% of the analyst community continued to rank it a “buy” as it underperformed. Now, WMT is breaking through to a new 12-month high — and only 46% of analysts rank the stock a “buy.” The crowd will start upgrading the stock soon as it continues its move higher, driving even more buying power toward the shares. In other words, it’s still early for WMT.

5 Ill-Equipped Communications Technology Stocks to invest in 2012

The communications technology industry was hit mighty hard by last year’s volatility roller coaster. Out of the more than 5,000 publicly traded companies I watch with my Portfolio Grader tool, these stocks were some of the worst.
I run these companies by a number of fundamental and quantitative measures. Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research.
5 Ill-Equipped Communications Technology Stocks to invest in 2012 - Alcatel-Lucent (NYSE:ALU) is involved with mobile, fixed, Internet Protocol and optics technologies. In the past year, ALU stock is down a significant 45%. ALU stock gets an “F” for sales growth, a “D” for earnings momentum and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of ALU stock.
Ericsson (NASDAQ:ERIC) is a communications technology company based in Sweden. ERIC stock has dipped 25% in the last 12 months, compared to a gain of 5% for the Dow Jones. ERIC stock gets an “F” for sales growth, a “D” for earnings growth, an “F” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of ERIC stock.
5 Ill-Equipped Communications Technology Stocks to invest in 2012 - Juniper Networks (NYSE:JNPR) deals with infrastructures as well as service layer technologies. Despite gains by the broader markets, JNPR stock is down 44% in the last year. JNPR stock gets a “D” for earnings growth, a “D” for earnings momentum, a “D” for its ability to exceed the consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of JNPR stock.
5 Ill-Equipped Communications Technology Stocks to invest in 2012 - Nokia (NYSE:NOK) operates in three business segments, but is known best for its consumer electronics, specifically mobile phones. NOK is down 54% in the last year. NOK stock gets an “F” for sales growth, an “F” for operating margin growth, an “F” for earnings growth, an “F” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of NOK stock.
Research in Motion (NASDAQ:RIMM) is known as the producer of Blackberry smartphones, and is the biggest loser on this list, down 74% in the last year. RIMM stock gets an “F” for sales growth, a “D” for operating margin growth, an “F” for earnings growth, an “F” for earnings momentum and an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of RIMM stock.

7 Warren Buffett Stocks Dishing Up Double-Digit Gains in 2012

Well, January sure set a pleasant tone for 2012. The market recorded its best first month of the year since 1997, with the S&P 500 up 5%, the Dow up over 4% and Nasdaq up a stunning 9% from Jan. 1 to Feb. 1.
Warren Buffett didn’t seem to fare as well, though, with his iconic 7 Warren Buffett Stocks Dishing Up Double-Digit Gains in 2012 - Berkshire Hathaway (NYSE:BRK.B) underperforming with a less than 3% return in January. But investors should know by now that Buffett stocks aren’t meant to be in your portfolio for a matter of weeks but for many months. The Oracle of Omaha has famously said that even if the market was open for just one day a year, he would still buy shares.
So don’t take this as a sign that Buffett has lost his edge just yet.
Which stocks is Buffett banking on in 2012? Here are the leaders so far. Share totals are as of the November filing for Berkshire Hathaway disclosure of equity stakes:
USG (NYSE:USG), 17.1 million shares. USG stock is up over 45% year-to-date in 2012.
Bank of America (NYSE:BAC), $5 billion in preferred shares bought with warrants at $7.14 per share. Common stock of BofA is up about 40% YTD, approaching $8 a share.
Ingersoll-Rand (NYSE:IR), 636,600 shares. Ingersoll-Rand is up 22% so far this year.
Moody’s (NYSE:MCO), 28.4 million shares. The ratings agency is up 14% in 2012.
7 Warren Buffett Stocks Dishing Up Double-Digit Gains in 2012 - Intel (NASDAQ:INTC), 9.3 million shares. Intel is up 11% so far this year.
Wells Fargo (NYSE:WFC), 361 million shares. Wells is also up 11% YTD.
7 Warren Buffett Stocks Dishing Up Double-Digit Gains in 2012 - American Express (NYSE:AXP), 151.6 million shares. AmEx is up 10% so far in 2012.
It’s no surprise that financials are the leaders here. Buffett’s value investing style has caused him to plow lots of cash into the financial sector in the wake of the crisis, and other Berkshire Hathaway holdings not making this list of double-digit gainers include U.S. Bancorp (NYSE:USB), Bank of New York Mellon (NYSE:BK) and 7 Warren Buffett Stocks Dishing Up Double-Digit Gains in 2012 - M&T Bank (NYSE:MTB), all up roughly 8% so far in 2011.
It’s strange, then, that Berkshire would underperform with so many high fliers in there. But remember, the stakes are far from equally distributed. Berkshire’s portfolio has are some 200 million shares of Coca-Cola (NYSE:KO) — with a total value of $13.6 billion, give or take a few hundred million. Coke stock is in the red year to date, and that has held back Buffett & Co.
But you can be sure that if financials keep rallying and Coke turns around, Buffett will do just fine in 2012.
In the meantime, take a good look at what Buffett has been buying, and ask yourself if any of these picks are right for your own portfolio.

10 Best Stocks to invest Under Barack Obama in 2012

There’s a lot of bluster this election year about the economy and President Barack Obama’s effect on jobs and the stock market. But what you may not realize is that many comparisons aren’t exactly fair.
Yes, in November 2008 when Obama won the election, unemployment was just shy of 7%, and when he took office in January it was under 8%. But comparing our current unemployment rate of 8.3% to what things were like when the president took office isn’t so simple. After all, the financial crisis was really only beginning in late 2008, and the Great Recession didn’t peak until mid-2009.
In many ways it’s an accident of timing that Obama has presided over a rise in unemployment more than anything else. It doesn’t take a rocket scientist to understand that a previous administration’s policies were in action for those first readings and Obama’s plans hadn’t yet had time to take shape.
The same can apply, however, to the stock market. The bottom of the bear market in equities came in early March 2009. So, in many respects, President Obama “bought the bottom” of the stock market and has simply presided over the rebound. The stock market is up about 55% since January 20, 2009, and a handful of equities are up by dramatically more than that.
Of course, the five-year return for the S&P 500 as of this writing is a loss of 8%, so we haven’t even gotten back to pre-crash levels yet. Let’s not pretend Obama ignited a stock market boom.
Still, investors are addicted to crunching numbers and tracking time frames. So I’ve decided to offer up some of the biggest winners since Obama took the oath of office in January 2009.
I could have included the losers too, but there would be too many tied for losses of 100% via bankruptcy — ranking from the recent failure of Borders to victims like (10 Best Stocks to invest Under Barack Obama in 2012)-General Motors (NYSE:GM), which went to zero but then got a second life with its 2010 IPO after Chapter 11 reorganization.
Instead, here are the 10 biggest “winners” under Obama, even though the president personally deserves little credit for these success stories:

1. Dollar Thrifty Automotive Group (NYSE:DTG), up 5,740%
2. Jazz Pharmaceuticals (NASDAQ:JAZZ), up 3,570%
3. (10 Best Stocks to invest Under Barack Obama in 2012)Pier 1 Imports (NYSE:PIR), up 2,750%
4. Cardtronics (NASDAQ:CATM), up 2,090%
5. Pharmasset (NASDAQ:VRUS), up 2,471% based on its buyout by Gilead (NASDAQ:GILD) that was completed Jan. 16 at $137 a share.
6. Boise (NYSE:BZ), up 1,560%
7. Dana Holding (NYSE:DAN), up 1,460%
8. Crocs (NASDAQ:CROX), up 1,390%.
9. (10 Best Stocks to invest Under Barack Obama in 2012)Valassis Communications (NYSE:VCI), up 1,230%
10. Ulta Salon (NASDAQ:ULTA), up 1,160%

Keep in mind that these figures are as of the opening bell on Feb. 2, and just a little difference in share price can really alter these returns considering the long-term change.
I’m not sure whether there are any lessons to learn from this list, either. But at least I hope you find it interesting.

3 Best Stocks With Big Dividend Growth Potential to invest in 2012

Dividends always have been welcome cash returns for investors, but they have become even more important elements in picking stocks in tough economic times. But a word of advice: In scouting for dividend plays, what’s essential is focusing on dividend-growth companies — companies with a potential of consistently increasing their payouts over the next three to five years.
It isn’t enough that the dividend yield is relatively high. What matters is whether a company will have the will and resources to steadily raise them year after year.
“There is sound logic in seeking out companies that are expected to have material growth in their dividend distributions,” says Alan House, analyst at independent investment research outfit Value Line. Dividends that are increased over time suggest a company that’s growing and a management that cares about returning money to shareholders, he adds.
In searching for such companies, the analyst screened Value Line’s database for companies in the 90th percentile or higher in estimated dividend growth rates over the next three to five years. Three companies stood out in Value Line’s search, which are in the diverse businesses of making fertilizer, infant milk and oil-drilling equipment. They aren’t currently paying lofty dividend yields, such as the 9.6% from specialty finance firm Apollo Investment (NASDAQ:AINV), or the 7.4% yield from investment adviser AllianceBernstein Holding (NYSE:AB). The Value Line picks, however, are among the most likely to elevate — in a big way — their currently small dividend yields in the years ahead.
They are (3 Best Stocks With Big Dividend Growth Potential to invest in 2012)CF Industries (NYSE:CF), which makes nitrogen and phosphate fertilizer products in North America; Mead Johnson (NYSE:MJN), which provides infant formula nutritional products; and (3 Best Stocks With Big Dividend Growth Potential to invest in 2012)National-Oilwell Varco (NYSE:NOV), a major supplier of equipment and components for the oil-and-gas drilling and production companies.
CF Industries, which produced strong sales and earnings in 2011, is likely to continue performing well.
“The company’s balance sheet looks solid,” says Michael A. Camp, president of Northwest Criterion Asset Management, which recently has accumulated shares.
Now trading at $182 per share, Camp says a price of $334 is quite possible based on his projected earnings of $22 per share for 2012. The outlook for CF Industries’ long-term growth is favorable, he says, with the strong demand for its products expected to continue.
Value Line’s Alan House says global population growth and increased per-capita income in developing and emerging nations will drive up demand for agricultural crops. What’s more, low global grain supply might well drive high plantings over the next several years. Because of this promising outlook, CF Industries’ board recently quadrupled the quarterly dividend to an average annual rate of 60 cents a share, or a dividend yield of 0.87%.
“We look for the payout to continue climbing in the years ahead,” House says.
Mead Johnson is making great strides in emerging markets, where revenue gains exceeded 25% in each of the past three quarters, notes House. In particular, MJN has been making big inroads into China, which he expects might well become Mead’s largest market down the road. So he looks for the positive momentum to continue and predicts the company will double its annual payout in the next three to five years, from the current 1.4% dividend yield. The stock currently is trading at $74 a share.
National-Oilwell Varco is running strong on all cylinders, House says, benefiting from better operating conditions in recent months, helped by a large order backlog — 80% of which is for international offshore rigs. The company’s low dividend yield of 0.64% is expected to be significantly expanded by the board during the next three to five years. Now trading at $77 per share, analysts expect the stock to climb to $85 to $99 per share during the next 12 months.
Kurt Hallead, analyst at RBC Capital Markets, says National-Oilwell is “one of the best ways to play the various positive trends currently driving oilfield services.” He rates the stock as outperform with a 12-month target of $85 per share.
For investors looking for solid investment bets in good or bad markets, there’s nothing like stocks that combine sturdy growth with potentially robust dividend yields. That’s the promise and potential of CF Industries, Mead Johnson and National-Oilwell over the long haul.

6 Software Penny Stocks to Buy in 2012

There is no better place to find explosive growth than with low-priced penny stocks. I’m not talking about pink sheet stocks that are potentially nonexistent, or fraudulent names set to crash. I’m talking about real companies with real earnings — companies listed for more than one year on a major exchange like the AMEX, NYSE or Nasdaq, and that have a market cap in the ballpark of $100 million.
The returns can be even more powerful when you combine the power of technology stocks and penny stocks. Specifically, the software space is seeing lots of action thanks to the mass acceptance of smart phones and personal computing devices.
These devices are quite powerful, but they still need programs to make them run. The best software companies are those that make users more productive. In this tough economy, those companies that help workers do more with less are poised to be the penny stocks that really move higher.
Because these companies have the wind at their sails from an earnings perspective, these penny stock prices will not last long. Now is the time to pounce before the rest of the market catches on.
Here are six software penny stocks to buy now:

6 Software Penny Stocks to Buy in 2012 - NetSol

NetSol Technologies (NASDAQ:NTWK) is a penny stock with a near $100 million market cap. This is a real company with real products and real revenues. The company makes application software for the automobile finance and leasing industry as well as the banking, financial services and healthcare industries globally.
Shares have drifted lower since peaking near $2.40 per share earlier this year. You can buy this penny stock today for just $1.60 per share. That is a bargain that you should exploit.
NetSol beat estimates in the last quarter by 4 cents per share. Look for a similar result when it announces quarterly results. For the full year, the expectation is for a profit of 18 cents per share. If the company does better than expected, this stock could really take off.

6 Software Penny Stocks to Buy in 2012 -

Cover-All

The penny stock Cover-All Technologies (AMEX:COVR) has a market cap of $63 million and is part of the Russell micro cap index. In May, the stock was listed on the AMEX exchange taking shares off bulletin board status. The stock has gained about 50cents per share since that time.
Cover-All Technologies is in the business of providing software products and services for the property and casualty insurance space. That sector has been getting headlines this year with the uptick in natural disasters and inclement weather. Any chance to save money with technology will be more likely to be advanced under more difficult financial times.
Cover-All is profitable and expected to make seventeen cents per share in the current fiscal year. That number jumps 3 cents to 20 cents per share in 2012. The company has beaten estimates in the last two quarters. You can buy that 17% growth for less than 15 times estimated earnings.

Top Image

One of the problems owning penny stocks is trading volume is thin and liquidity makes it tough to sell shares for a profit. In the case of Top Image Systems (NASDAQ:TISA), we have a stock that sees an average of 300,000 shares trading hands each day. Clearly this stock will be followed by a fairly large group of investors.
Top Image system is in the business of making software with respect to data capture and manipulation. This Israeli-based company was founded in 1991. Shares of the company blasted higher in early May after the company reported positive results for its first quarter of 2011.
In the period, the company saw a 36% increase in revenue and posted a profit of seven cents per share as opposed to a loss in the year prior. That was enough to move the stock from $1.34 per share to $2.20 per share. Those are the types of moves you can expect from a penny stock when it delivers solid operating performance. I expect a repeat performance in future quarters.

Authentidate

Authentidate Holding Corp. (NASDAQ:ADAT) is in the business of making the health care industry less paper-intensive. Offering web-based solutions for health systems and physician groups, this penny stock has nearly doubled in value since early April.
I don’t think the gains are done there. This sort of momentum is what I like to see. Historically riding these waves of momentum has been very lucrative to me and my investors.
Authentidate is growing and continually adding to its impressive roster of customers. Most recently the company signed a deal with the Department of Veteran Affairs to provide telehealth solutions. The company is expected to lose money in 2011, but to be profitable in 2012. If so, the stock will double again from here.

Cinedigm Digital Cinema

Penny stocks can be quite volatile. Shares of Cinedigm Digital Cinema (NASDAQ:CIDM) have been on a roller coaster this year. In mid-March the stock caught fire and jumped a dollar per share over the course of a couple of months. Since that time, shares have given up half that gain to the ballpark of $1.90 per share.
Use the selling to get in on this penny stock ride. Cinedigm provides technology solutions and digital content to theater exhibitors. The company just completed a year of operating losses that it expects to sharply narrow in the 2012 fiscal year. Sales are growing rapidly and that is what investors should focus on today.
To the extent they beat expectations, profitability may arrive sooner than later.

Mind CTI

Mind CTI (NASDAQ:MNDO) is an Israeli-based technology company that provides convergent end-to-end billing and customer-care product-based solutions for service providers as well as telecom expense management solutions. After peaking at nearly $3.60 per share, the stock has slipped to current levels at $2.80 per share.
The move lower comes on the heels of a less-than-stellar quarterly earnings report for its first quarter ending March 31, 2011. Year over year revenue in the period was lower, but the company did post a profit of six cents per share. In addition to reporting a backlog to be recognized this year of $10.2 million Mind CTI had previously declared a cash dividend of 32 cents per share.
With telecom and wireless being all the rage around the globe, I expect Mind CTI to perform quite well for the remainder of the year.