Best Stocks to Invest in 2012 - Buffett's Favorite Stocks For 2012

Earnings of Dow stocks Procter & Gamble, Kraft and Johnson & Johnson will be scoured the most by billionaire investor Warren Buffett, whose Berkshire Hathaway is among the top four shareholders of each.

Those three companies, and the other Dow consumer-goods stock McDonald's, will start reporting earnings Jan. 24.

Procter & Gamble, Kraft, Johnson & Johnson and McDonald's had virtually flat earnings last year, according to analysts' estimates.

Nevertheless, Buffett has made a fortune by buying large and steady companies. (He also owns Coca-Cola

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.) As the economy rebounds this year, not only growth stocks such as Best Stocks to Invest in 2012 - Apple
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and Netflix
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may outpace the Best Stocks to Invest in 2012 - S&P 500 Index, but also laggards including Dow Jones Industrial Average top stocks for 2012.

The 2010 share-price returns of the four Dow consumer stocks are led by McDonald's, at 27%, and bracketed by Johnson & Johnson, with a decline of 0.7%. Dow stocks gained 11% last year, while the S&P 500 rose 15%. The Dow industrials have advanced a mere 7% over the past decade, trailing small- and mid-cap stocks.

But large-cap stocks are considered undervalued, based on current price-to-earnings ratios versus historical norms, and are overdue for a breakout, according to fund managers including Bruce Berkowitz of the Fairholme Fund and Donald Yacktman of the Yacktman Fund. So these companies could soon shine, especially as inflation quickens when they can pass on rising costs to customers.

Among the challenges faced by food-industry firms Best Stocks to Invest in 2012 - McDonald's and Kraft

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is rising agricultural commodity prices, which put pressure on profits in the fourth quarter. They are expected to bump up prices because of that.

Another common issue is the push for a bigger geographic footprint. Johnson & Johnson and Procter & Gamble are long-standing international forces. Kraft bought the U.K.'s Cadbury, a candy maker, about a year ago to boost its international business. And McDonald's is pinning much of its growth prospects on China, where business is booming.

Buffett's investing philosophy includes buying high-dividend-paying stocks with strong fundamentals and some sort of "moat" such as a strong brand name, market dominance and industry leadership.

And each of those companies has those characteristics.

Buffett is also known as a buy-and-hold investor. As evidence of that, the three companies were also among the top seven holdings of Berkshire Hathaway at the end of 2008.

What follows are the fourth-quarter earnings expectations of four companies in the Dow's consumer-products sector, arranged by reporting dates, starting with McDonald's.

Buffett's Favorite Stocks For 2012: Best Stocks to Invest in 2012McDonald's

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, the fast-food giant, reports earnings Jan. 24. Wall Street analysts surveyed by Thomson Reuters expect earnings of $1.16 per share on revenue of $6.2 billion. For the same period a year earlier, profit was $1.11 per share on $6 billion in revenue.

Business from China was a big contributor to fourth-quarter earnings, and the earnings outlook from analysts increased 3.5% over the period because of that. China is expected to be the growth driver in coming years, and the company plans to boost capital spending there by 40% this year.

The consensus analysts' estimate from Thomson Reuters calls for 2010 earnings of $4.60 per share, rising to $5.02 in 2012. It said analysts' consensus price target over the next 12 months is $85.40, a 15% premium to its current price.

Shares of McDonald’s gained 27% in 2010 versus the 35% increase of the restaurant sector tracked by Morningstar. Its shares are down 2% this year. They have a dividend yield of 3.3%.

At the end of the third quarter, Capital World Investors was the largest shareholder, with a 6% stake, despite selling 7 million shares in the period. Fidelity was the second-largest shareholder, and bought 3 million shares to grow its stake to 4% in the third quarter.

Analysts have eight "strong buy" ratings, seven "buy" ratings, 10 "holds," and one "reduce" on its shares, according to Thomson Reuters.

Best Stocks to Invest in 2012 Buffett's Favorite Stocks For 2012:Johnson & Johnson

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will release its fourth-quarter earnings Jan. 25. Analysts expect it to report $1.03 per share, versus $1.02 last year, according to Thomson Reuters. In the third quarter it earned $1.23. That would bring 2010 earnings to $4.75. It earned $4.63 in 2009.

The company's quarterly earnings have been relatively flat over the past three years. Analysts expect its earnings to grow 5% to $4.97 per share in 2012. Projected 2010 revenue is $62 billion, flat to 2009.

Johnson & Johnson is one of the world's largest and most diverse health-care companies, with three divisions: pharmaceutical, medical devices and diagnostics, and consumer products.

Johnson & Johnson also has been one of the most respected brands in its various fields, but that is being undermined by a series of recalls, the most recent about a week ago.

On Jan. 14, it announced the recall of nearly 47 million units of over-the-counter medicines including bottles of certain Tylenol, Benadryl, Sudafed and Sinutab products distributed in the U.S., the Caribbean and Brazil.

The company faces challenges on other fronts as well. The patent rights of two of its big sellers — the antipsychotic Risperdal and the neuroscience drug Topamax — expired recently, which will hurt revenue.

But its fundamentals are solid, including a diverse revenue base (each business represents about a third of annual revenue), protected markets, because of its many patents and huge cash flow that it uses to fund its research pipeline and make acquisitions.

Johnson & Johnson's shares gained 11% in 2009, lost 0.7% in 2010 and are up 1% this year. It shares have a dividend yield of 3.49%. The company announced a $10 billion share-repurchase program late last year, which should help boost prices.

A poll of 17 analysts by Thomson Reuters gives it a 12-month price target of $67.70, or an 8.2% premium to the current price. Those same analysts give its shares three "buy" ratings, 10 "buy," and 11 "hold."

At the end of the third quarter, State Street was the biggest shareholder, with 5% of outstanding shares, about the same as over the course of the previous year. Berkshire Hathaway is the fourth-largest shareholder, at 1.6%, and the number of shares owned was up by over 30% in the first three quarters of 2010.

Best Stocks to Invest in 2012Buffett's Favorite Stocks For 2012:Procter & Gamble

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, the international household-products conglomerate, is expected to report earnings of $1.10 per share on Jan. 27 for its second fiscal quarter, down from last year's $1.49 per share. In the previous quarter, its first fiscal quarter, which ended Sept. 30, it earned $1.02 per share. Analysts expect 2010 earnings of $3.98 per share down from $4.11 in 2010.

Among P&G's well-known branded products are Tide detergent, Dawn dishwashing liquid, Bounty paper towels, Pringles snack chips, Gillette shavers and Duracell batteries. The firm offers multiple products in a category and often more than one brand and regularly comes out with improvements to retain customers.

The mean consensus 12-month share-price target of 18 analysts is $71.60, a 9.3% premium to the current price, according to Thomson Reuters. It has a dividend yield of 2.9%. A healthy 9.5% dividend increase in fiscal 2010 and planned share buybacks of $6 billion help make its share s more attractive.

The stock has underperformed the broader market over the past two years, gaining 9% in 2010 and about 1% in 2009. Shares are up 1.6% this year and hit a 52-week high Jan. 18. Berkshire Hathaway is third-largest shareholder, at 2.7%. Its share holdings were down slightly in the third quarter, the latest period for which such information is available.

Kraft Foods will release its fourth-quarter results Feb. 10. Analysts expect earnings, on average, of 46.5 cents per share, versus 48 cents last year. In the third quarter, it reported 47 cents per share. Kraft's quarterly earnings have hovered around 50 cents per share for the past four years. Earnings for 2010 are pegged at $2.03 per share on revenue of $49 billion, and are seen rising to $2.32 per share in 2012.

Kraft acquired U.K. candy company Cadbury early last year in a $19 billion deal and is still in the process of restructuring to integrate it into its other businesses. Cadbury's brands and distribution capabilities worldwide are expected to leverage sales of Kraft's products. The company manufactures and markets packaged food products, including snacks, beverages and packaged grocery products.

Kraft has operations in more than 70 countries. Its brands include Oscar Mayer meats, Philadelphia cream cheese, Maxwell House coffee and Nabisco cookies and crackers.

Shares gained 20% last year and 5.6% in 2009. They are down 1% this year. They have a dividend yield of 3.7%. Kraft's shares are seen as cheap, given its 14.1 forward price-to-earnings ratio.

According to Thomson Reuters, analysts give Kraft shares seven "strong buy" ratings, eight "buys" and six "holds." Their current 12-month share-price target is $35.10, a 2.3% premium to the current price. Berkshire Hathaway

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is the largest shareholder in Kraft, at 6% of outstanding shares, which is almost 7% of Berkshire Hathaway's assets. That stake is down about 24% from the beginning of 2010. Kraft shares were up 20% in 2010 and are down 1% this year.

Hot Stocks For 2012

Hot Stocks For 2012: Alcoa(AA_)

Let's start off with a bang. With just a $14 billion market cap -- and being the leading independent producer of a metal that will be in intense demand in 2012 because of boosted aerospace, autos and power plant production -- Alcoa will be hard-pressed to stay independent. Earnings have been depressed throughout the downturn, but the cash flow has picked up, courtesy the excellent stewardship of CEO Klaus Kleinfeld. If the company stands alone its stock can advance and get a 12 multiple, a slight discount to many of the cyclical stocks in the average, and that would put it at $18. But I think it gets bought out at $22, a fabulous return and perhaps my favorite in the whole average.

Hot Stocks For 2012: Bank of America(BAC_)

The bank will settle the mortgage putback claims, put a lot of its bad mortgage loans behind it and have an assertive Merrill Lynch to boost its earnings. I think that this company, which trades basically at its cash value, will have a terrific year, especially because CEO Brian Moynihan should be growing into his role and become more of a spokesperson that can help this riddled brand. The integration of the three companies, original Bank of America - itself a pastiche of many banks including Nations and Fleet, where Moynihan's from -- Countrywide and Merrill Lynch will finally be consummated in 2012. Glorious. Don't forget that despite all of the turmoil, Bank of America now has an unheard-of 20%-plus market share in the nation's mortgage market, and I think that market will come alive as the housing shortage of 2012, another of my predictions, comes about. I see this stock trading at $18, where it stood not that long ago, a terrific gain.

Hot Stocks For 2012: MEMC Electronic Materials(WFR)

MEMC Electronic Materials(WFR) makes polysilicon and wafers for the solar energy and semiconductor industries.
Barclays believes that it will gain market share in the semi space in 2012 and its movement to bring wafering in-house will accelerate vertical integration in the solar business and boost margins going forward. With declining average-selling-prices and costs for wafers in 2012, earnings remain variable.
Still, the stock trades at nine-times Barclays' 2012 earnings forecast, a significant historical discount. In years past, its trading range has been 12 to 27 times Barclays' EPS estimate, so major upside is possible.

Hot Stocks For 2012: TCF Financial(TCB)

TCF Financial(TCB) is a Midwest bank with retail and wholesale banking businesses.
Barclays notes that its seven-day branch operations and outstanding deposit base afford it a "best-in-class net interest margin." It has a strong leasing and equipment finance lease division, which will grow lending in 2012. Regulatory hurdles, including lower service fees stemming from the Dodd-Frank Act, present a potential headwind, which could damage its debit card fees anywhere from 20% to 80%.
Still, TCF is an exceptionally well-run bank, with 62 quarters of consecutive profitability and higher-than-average capital ratios. Barclays projects a $22 share price, suggesting 51% of upside in 12 months.

Hot Stocks For 2012: JPMorgan Chase(JPM)

The dividend's going to be boosted, the buyback enlarged, the earnings power revealed, the shroud gone. JPM's still the best-run bank in America, if not the world and CEO Jamie Dimon is one of our greatest bankers. The company really did come through this period relatively unscathed and with a better branch network, courtesy the dirt cheap price of Washington Mutual. This company's stock has done nothing, literally nothing, year over year. Unchanged! That won't be the case in 2012. I see it going to $50 propelled by earnings power and the dividend hikes. It will be the preeminent financial to own and become a staple of many a mutual fund's portfolio. Call it $50.

Hot Stocks For 2012: 3M(MMM)

The disappointing analyst meeting and the negative previous quarter haunt this stock going into 2012. But if you are like me and believe there will be worldwide growth, you would be nuts not to consider buying this 13% grower for just 15 times earnings. 3M's got so much going for it in Asia and has so many new businesses--it remains the most potent inventor of new products among the major companies I follow--that I think it will drift back up to its 52 week high of $91 if not higher. Perhaps $100, which I think is my stretch goal given its $6.16 in composite EPS estimates. Why $100? I think the dollar gets weaker and this is one of the most sensitive companies to the greenback which means that $6.16 could be too low. Cheap stock that's in the penalty box because of the ever so slight shade down of earnings, a shade down that, when I analyze the company, is something that will be left behind in 2012.

Hot Stocks For 2012: Vale(VALE)

Vale(VALE) is a metals and mining company and a producer of iron ore and iron ore pellets.
Barclays views the stock as the "best vehicle in Latin America to gain exposure to a potential five-year iron ore super cycle." A favorable iron-ore pricing environment will boost the stock, which is expected as Chinese consumption continues to grow.
Vale is a lowest-cost producer, so growth translates favorably to the bottom-line tally. Further, Barclays believes that Vale offers superior product quality, with a high iron to low gangue proportion, and has outstanding "long-reserve-life assets."
It views the consensus price scenario for iron as too bearish and the supply scenario as too optimistic.

Hot Stocks For 2012: Invesco(IVZ)

Invesco(IVZ) is an asset-management company, which Barclays believes is best positioned to profit from a transition out of fixed-income vehicles and into riskier asset classes in 2012, as Invesco's asset base is nearly 50% in equities or equity-related assets.
Barclays sees the operating margin rising from the mid-thirty-percent range to just beneath 40% if it can leverage its retail products into the institutional space and expand its asset base. Barclays' target suggests a potential 35% return in the next 12 months.
Other researchers are also bullish. Of those covering the stock, 65%, comprising Goldman Sachs, Credit Suisse and JPMorgan advise purchasing Invesco

On January 10, 2012, in Investment Strategy, Stock Market, by David

The euro zone is falling apart, and although the US economy is improving, we are still far off from a full recovery.  So the question becomes, are there any good stocks to buy now in a climate like this?  The answer is yes!  Whether you are in a bull market, bear market or in limbo, which is what we are in now, you can make money in the stock market.  As this tumultuous year winds down, here are some stock investment ideas for 2012.
Many investors are sitting on the sidelines right now figuring out the next phase in our global economy.  They are sitting on cash, US Treasuries or gold.  These are all super defensive plays.
Then there are the risk takers who are trying to find deals.  Among the sectors where you might find undervalued stocks are in the financial sector and technology.  Banks have been struggling since the 2008 financial crisis.  They have not fully recovered.  There is also nervousness about the exposure to European debt and new financial regulations that are coming down the pike.  But for the true believers, they are confident that banks will recover and thrive in the long run, making these good stocks to buy now while they’re cheap.  This includes all the bankers right now taking stock options in lieu of cash bonuses.  If these insiders didn’t believe it, they wouldn’t be taking their bonuses in stock.
Defensive Stocks – Strong Now, Strong Later
Many experts and analysts are recommending defensive stocks as good stocks to invest in right now.  Defensive sectors would be things like healthcare, consumer staples and utilities.  Many are also advocating that you should invest in large multinational corporations that have a strong presence in the emerging markets.  This will give you financial strength to weather any downturns, but also offer opportunities to leverage the massive growth in developing economies.
You generally think of defensive stocks as those that you invest in when there is a downturn in the economy.  But I like the following defensive stocks because I think they will continue to be strong even when the economy is no longer in a recession.  The thing is that if you do strict valuations, it looks like the entire stock market is undervalued.  So when the economy recovers, it should cause a rising tide that raises all ships, including defensive stocks.  They are one of those win-win plays.
Johnson & Johnson (JNJ) - I really like JNJ.  They are the largest health care company in the world, in an industry that is ever growing.  They have extremely strong brands for consumer products all around the world.  They also have a strong business on the medical technology end as well.  As the world grays with increasing numbers of the elderly, a massive and emerging middle class in the emerging markets and just the nature of the health care industry in general, I think JNJ is very well positioned to take advantage of significant growth over the next decade.  They are also lending money to European banks.  That means they have a lot of cash.
Exxon Mobil (XOM) - Again, another company that will win either way.  This is the largest company by market cap on the US stock market.  That makes them a safe haven asset when the economy is going south.  But in addition to their defensive qualities, they also have great long term prospects for growth.  They are always finding new reserves of oil.  But they are also investing in other energy sources as well like natural gas.  I think they will be a huge player in the natural gas power generation business in years to come.  I’m bullish here because I think gas will become a major player in the power generation industry in the US.  It burns cleaner than coal and safer than nuclear.
Growth Stocks – Speculation Play
If you are a speculator and looking for high growth stocks to buy, here are the ones you want to watch.  Remember, with the potential for high returns also comes equal downside risks.  Especially right now, only use money you can afford to lose on these stocks.
Google (GOOG) – This stock has been going up higher and higher for at least the last 10 years.  They don’t seem to be letting up.  On the fundamental side, their market share is growing as well as the market itself.  They are starting to get into the social networking space as well with the recent release of Google+.  The thing you want to watch for is their operational costs.  It’s been rising very quickly due mostly to hiring costs.  I don’t foresee that stabilizing at any point.  Just make sure the earnings are growing faster than rising costs.
Apple Inc (AAPL) – This is another technology stock with great potential.  With each new release of an iPhone or iPad device, the stock continues to climb.  They have the “wow” factor down and I don’t see this changing any time soon.  Their new server farm in Charlotte, NC just went online as iCloud.  I think this is going to make a huge long term difference.  But in the short term, you have very regular releases of new versions of their flashy devices.  As long as they keep that up, the stock will continue to rise.  Although Steve Jobs is no longer here with us, he probably left a road map for Apple to follow for the next 3-5 years.  The question will be whether Tim Cook will be able to execute on those plans.
Netflix Inc (NFLX) – I’m not as crazy about this one.  Their stock price has risen considerably for sure.  Even the great speculator George Soros is said to be holding this stock.  But I think the growth is going to be short-lived.  Publishers don’t like them and that will only hurt their licensing costs.  In addition, their business model of streaming movies and TV shows has relatively low barriers to entry.  I think if Google buys Hulu as it’s rumored to be, I suspect Netflix might feel their final blow as a speculative growth play.  I would put this in the category of stocks to not buy right now or one to look for short selling opportunities.
Stocks to Buy in a Recovery
Cyclical stocks are ones you want to invest in during a time of economic growth.  The ideal time to get into these stocks is right when a recession is turning into a sustained recovery.
Ford (F) - I like Ford for several reasons.  First of all, I respect this company.  They were the only ones not to receive a government bailout.  They stuck it out on their own and survived.  Now they are thriving.  But I need a little more than respect to want to invest in it.  They have a strong presence and penetration into emerging markets.  They have been able to adapt to the new environment they find themselves in with low cost, smaller vehicles.  They have the pulse of the emerging market consumer.  In addition, and this is very important to me, their financials are very strong.
JC Penny (JCP) – JC Penny is what they call a consumer discretionary stock.  These are companies that do well during good economic times because they sell stuff that people don’t absolutely need.  I like JC Penny in particular because they have not been doing well.  Yes, that’s right.  I like them because of their failure.  That is because they are turning their failure into an opportunity and the best success stories start out that way.  In their failure, they have hired a master retailer to become it’s next CEO.  Ron Johnson has been the brains behind Apple’s spectacular success with their retail stores.  He also has a design background, which you can see when you walk into an Apple store.  If you wonder what his potential contributions could be, just walk into one of their stores and get the Apple experience.  Johnson is an innovator and I think he’s going to lead a retailing revolution.
Emerging Market Stocks
The emerging markets are growing at an incredible pace.  Most retail investors do not have access or the information necessary to access these markets.  You can invest in them indirectly with stocks that have a lot of business interest in these regions.  These stocks are a bit risky, especially if we start to see a slowdown or even a bubble pop in countries like China, India, Brazil, Russia and Southeast Asia.
Caterpillar – This company makes heavy equipment like backhoes and diggers for the construction industry.  This sector has taken a hit in the US and the Western world, but is booming in other emerging economies.  As long as there is this building boom in developing countries, you will see companies like Caterpillar do well.  The only thing to watch out for is if and when a potential building bubble in China bursts.  Then you might see it screech to a halt temporarily.
IBM – I like IBM here because they are providing the hardware and IT infrastructure necessary to equip these economies with the technology to grow.  Their server business will only get better as these economies develop.  In addition, they are providing the hardware for cloud computing, which is the next mega-trend in technology.
Yum Brands! – This used to be the restaurant arm of Pepsi Co.  They were spun off a few years ago.  You would recognize the brands that they own like Pizza Hut, KFC and Taco Bell.  They also do A&P Restaurants as well.  That is why you are seeing combo restaurants in many places now.
They are actually doing quite well.  They are also well-positioned to take China by storm.  If you know any Asians, you know that many of them love Kentucky Fried Chicken.  I’m not exaggerating.  Just think about how much you can scale this demand in a place like China.  As the middle class grows in that country, there will be tons of opportunities for this brand to expand.  KFC is doing even better than McDonald’s in China.
Index Fund Investing
Everyone is trying to beat the market by finding the best stocks to invest in.  From professional money managers, to institutional investors on Wall Street, to the retail individual investor on main street, to those looking to skim on penny stock investing, everyone is trying to out-do the stock market.  But the harsh reality is that a few actually end up finding the top stocks to invest in.
Research studies are starting to recognize that only a handful of investors actually beat the market consistently over time.  So if a professional money manager for a large mutual fund management company can’t consistently beat the market, an individual investor should be wary of stock picking for himself.
That is where index fund investing comes in.  You don’t have to spend hours to find good stocks to invest in.  Instead, you let the market pick them.
The reason why index investing is highly recommended by so many smart investors, Warren Buffett being one of them, is that over time, they will almost surely give you a return.  Now instead of beating the market, you are trying to grow with it.  Historically, the market has always grown over time.
Penny Stock Investing
If you are looking for hot stock tips, you will probably run into many penny stock investing opportunities.  These are abundant, especially online.  They tout really cheap stocks and how you can get in on the ground floor.
Historically, many frauds have come from penny stock investments.  They are hard to catch or even see on the radar because they are so small.  The SEC has a hard enough time watching the big blue chips let alone tiny IPO’s.  In addition, many of them are based outside of the US, which also helps them fly under the radar.
All I have to say here is to be careful of penny stock investing.  The only smart way to do it is if you know the company personally or can walk down to their operations and see with your own eyes that it is a legitimate company.
The other problem is that liquidity is horrible on these stocks.  That means you won’t get the optimal entry and exit prices on these stocks.

Top 5 Emerging Growth Stocks to Buy for January in 2012

If you have cash to invest this month, I highly recommend these five below. Here they are, in no particular order:

Taiwan-based Silicon Motion Technology (NASDAQ:SIMO) has its hand in lots of hot markets and is a big player in flash memory storage — flash memory cards, USB flash drives, card readers and solid-state hard drives. In fact, most of the NAND flash and next-generation flash products on the market — whether produced by Samsung (PINK:SSNLF), SanDisk (NASDAQ:SNDK), Toshiba, Micron (NASDAQ:MU) or Intel (NASDAQ:INTC) — are supported by Silicon Motion controllers. Silicon Motion also produces multimedia chips including embedded graphics processors, image processors and TV tuners. Lastly, it has been increasingly focused on controllers for smartphones, tablets and notebook PCs, as well as wireless transceivers for 4G LTE smartphones and tablets.

In the third quarter, Silicon Motion’s sales rose 25% to $63.2 million compared with $50.5 million in the second quarter. Looking forward, the analyst community is expecting annual fourth-quarter sales growth of 51% and 88.9% earnings growth. In the past three months, the analyst community has revised their consensus earnings estimate 32% higher — a phenomenon that typically precedes blowout earnings surprises.

Top 5 Emerging Growth Stocks to Buy for January in 2012 - Questor Pharmaceuticals (NASDAQ:QCOR) likes a challenge. As a specialist of difficult-to-treat central nervous system disorders, the company has been particularly successful with its multiple sclerosis treatment, H.P. Acthar Gel. The company also makes Doral, which is used for the treatment of insomnia. In the massive biotechnology industry, Questcor is top-notch in terms of earnings per share growth and return on equity.

For the fourth quarter, the analyst community is expecting 127.4% annual sales growth and 265.7% earnings growth of 38 cents per share. In the past three months, the analyst community has revised their consensus earnings estimate 32.6% higher. Typically, such positive analyst earnings revisions precede future earnings surprises.


Top 5 Emerging Growth Stocks to Buy for January in 2012 -Hansen Natural (NASDAQ:HANS) is the mastermind behind Monster, a dominant energy drink in the U.S. Looking at a can of Monster Energy drink, the flashy staple of sleep-deprived college students, one wouldn’t think that the company’s humble beginnings stem back to just one father and three sons working with a juicer in Southern California. In fact, although Hansen sells supercharged drinks like Monster and Java Monster, most of its drink roster is actually very wholesome. For example, it has 30 real fruit and spice soda flavors, a number of immune system-boosting drinks, vitamin waters and an array of teas and lemonades.

In recent quarters, Hansen Natural has reported “monster” sales and profit growth. Third-quarter sales jumped 24% from $381.5 million last year to $474.7 million this quarter. Over the same period, net income also rose 24% to $82.4 million, or 88 cents per share. Plus, speculation is heating up that Monster might be an acquisition target by Red Bull or one of the major soft drink companies. With Red Bull’s recent decision to pull out of NASCAR as a sponsor, a “monster” acquisition might be just what the energy drink maker needs to capture additional U.S. market share.


Top 5 Emerging Growth Stocks to Buy for January in 2012 - Spectrum Pharmaceuticals Inc. (NASDAQ:SPPI) is familiar pharmaceutical company I once discussed in the Top 5 Emerging Growth Stocks for December. Spectrum specializes in oncology — the treatment of cancer — and currently has two cancer treatments on the market: Fusilev, a treatment for advanced colon cancer, and Zevalin, a treatment for a type of lymphoma.

But what really excites me about this company is what it has in its pipeline: Spectrum has more than 10 drugs in either late-stage development or development! This includes Apaziquone, a treatment for bladder cancer, Belinostat, another lymphoma treatment and Ozarelix, a treatment of prostate cancer. This is a midsize biotechnology company already at the top of the industry — in terms of return on equity — and is about to experience blowout growth.


Top 5 Emerging Growth Stocks to Buy for January in 2012 - Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) has two flagship drugs — Xyrem, the only narcolepsy treatment approved by the World Anti-Doping Agency, and Luvox CR, its obsessive compulsive disorder treatment. But there are a number of exciting developments on the near horizon, including Jazz’s massive buyout of Dublin-based Azur Pharma Ltd., which should close within the next couple of weeks, and the company’s subsequent moving of its headquarters to Dublin. After the move, Jazz will be able to take advantage of Ireland’s competitive tax rate.

The company’s sales climbed 63.3% and earnings surged 115.6% in the third quarter, and for the fourth quarter, the analyst community is expecting 54% annual sales growth and 70.5% earnings growth. Jazz Pharmaceuticals is flush with cash and recently prepaid $33 million in long-term debt, and I’m excited to see how developments play out in the company’s next earnings release. Also, despite those who might think that Jazz Pharma’s bullish run looks tapped out, I remain optimistic.

3 Small-Cap Stocks to Buys for January in 2012

First up this month, I have CVD Equipment (NASDAQ:CVV), a manufacturer of the gear behind tomorrow’s futuristic nanotechnologies, including solar cells, electronic components, carbon nanotubes, LEDS and smart material coatings.

But what really has the company in investor headlines lately is its involvement with graphene, the thinnest and toughest material ever produced. Graphene is a one-atom-thick layer of carbon. Academics have recently figured out how to manipulate the way the material conducts electricity, a breakthrough that opens the door to its use in computers, since graphene conducts electricity 30 times faster than silicon — approaching the speed of light!

Graphene is an extraordinary material — in 2010, Andre Geim and Konstantin Novoselov won the Nobel Prize in Physics for their groundbreaking experiments with it, and there are a lot of companies, universities and industries researching it. It’s too soon to tell which of these players will be the big winner, so I want to go straight to the source and invest in the equipment that all of these players need for their research.

With the excitement about graphene and its possible uses, it’s no surprise that CVD’s order backlog has soared this year, climbing 141% in the third quarter. Sales in the third quarter rose 119.3%, to $8.8 million, compared with $4 million year-on-year. During the same period, CVD Equipment’s earnings surged 566.7%, to $1.2 million — $0.20 per share. The analyst community was expecting earnings of $0.11 per share, so the company posted a whopping 81.8% earnings surprise.

For the fourth quarter, the analyst community is expecting 66.7% annual sales growth and 87.5% earnings growth. In the past three months, analysts have revised their consensus earnings estimate 30.6% higher. Of course, such positive analyst earnings revisions usually precede tremendous future earnings surprises.


3 Small-Cap Stocks to Buys for January in 2012 - Mitcham Industries (NASDAQ:MIND) is a high-tech provider of seismic equipment to the energy industry, enabling the next generation of oil-and-gas exploration.

Oil companies are increasingly finding it difficult to extract gas from traditional deposits and are being forced to look at alternative sources and methods of extraction. With viable alternative energy sources still a ways off, Mitcham’s products are going to become integral to the maintenance of our energy status quo.

The company leases seismic equipment to energy companies that allows them to get a picture of what’s happening below ground. Mitcham also manufactures and sells seismic gear under the well-known Seamap brand name.

Mitcham’s manufacturing-and-leasing business model provides superior margins compared with other segments of the seismic industry. In the third quarter, sales rose 40%, to $28 million, compared with $20 million in the same quarter a year ago. During the same period, earnings soared 642.9%, to $6.8 million, or $0.52 per share. The analyst community was expecting earnings of $0.22 per share, so the company posted a whopping 136.4% earnings surprise.

In the third quarter, Mitcham says, there was strong demand from Latin America and companies tapping the gas-holding shale formations of the U.S. Looking forward, Mitcham predicts strong results in Russia and Canada this winter. In addition, the company says it’s encouraged by the number of inquiries and orders for long-term work. For the fourth quarter, the analyst community is expecting 47.8% annual sales growth and 135.9% earnings growth.

3 Small-Cap Stocks to Buys for January in 2012 - Plains All American Pipeline (NYSE:PAA) is cashing in big time on the transportation and storage of crude oil, refined products and natural gas in the U.S. and Canada. And in December, the company announced five asset-rich strategic acquisitions totaling $2.3 billion.

Its blockbuster deal was snapping up British Petroleum’s (NYSE:BP) natural-gas liquids business in Canada for $1.67 billion in cash, which will expand Plains All American’s Canadian footprint and provide the capacity to increase its U.S. operations. The location of the BP pipelines and plants allows for processing of gas from new U.S. formations, including the Bakken formation in North Dakota and the Marcellus formation in Pennsylvania. In total, the acquisition includes about 2,500 miles of pipelines, 21 million barrels of LNG capacity and seven gas-processing plants. The deal is expected to close in the first half of this year.

The company also announced four “bolt-on” acquisitions for about $620 million, including a South Texas crude-oil and condensate-gathering system, a Canadian trucking operation, a multiple-product storage facility in Yorktown, Va., and a pipeline in the Permian Basin.

Plains All American has an extremely attractive 5.4% dividend, and as a Master Limited Partnership, it can allow for pass-through income, eliminating the “double taxation” that is generally applied to corporations. Looking forward to the fourth quarter, the analyst community is expecting annual sales growth of 38.3% and earnings growth of 59.3%. In the past three months, the analyst community has revised its consensus earnings estimate 20.6% higher.
3 Small-Cap Stocks to Buys for January in 2012 - 

3 Forgotten Stocks Worth Reconnecting With in 2012

It’s always worth a look when a one-time growth stock falls into value territory, and the market volatility of the past year has left its share of former high-fliers stranded well below their recent highs. Three such stocks are Monsanto (NYSE:MON), Teva Pharmaceuticals (NASDAQ:TEVA) and Ericsson (NASDAQ:ERIC). Once favorites of the press and institutional money managers alike, these stocks have quietly maintained steady fundamentals even as their valuations have come down. This disconnect presents an opportunity for longer-term investors.
3 Forgotten Stocks Worth Reconnecting With in 2012 - Monsanto

Monsanto is a case in point. The stock of this global agribusiness giant delivered a 22-bagger for investors from mid-2002 through mid-2008 — a period that saw its P/E surge from the mid-teens into the 50s. During this interval, the market became enamored with the “story” of the company capitalizing on rising global agricultural production through its genetically enhanced seeds. But Monsanto’s market value has been cut in half since its 2008 heyday thanks to rising competition, price pressures and slowing sales for its signature Roundup product. The result: a stock whose valuation no longer captures its earnings power.


According to the USDA, the average net cash income for U.S.-based farm businesses rose 17% in 2011 and is on track for another increase for 2012. Notably, the latest survey of farmer confidence showed continued strength, which obviously is a positive for suppliers such as Monsanto. The company has a strong product pipeline — including drought-tolerant corn, expected to launch in 2013 — that provides a solid foundation for earnings in the years ahead. It also should be noted that Monsanto, whose products help boost crop yields, still is in a prime position to benefit from the long-term imbalance created by the rising demand for agricultural products and the static supply of arable land. As a kicker, the stock yields a 1.7% dividend.

Despite these positives, the stock is trading at a discount to its five-year averages for all key valuation measures: P/E, price-to-book, price-to-sales and PEG. The chart also is potentially favorable with the possibility of a breakout if the stock rises above $77. Monsanto reports earnings Thursday.
3 Forgotten Stocks Worth Reconnecting With in 2012 - Teva Pharmaceuticals

Israel-based Teva, the world’s largest maker of generic drugs, rewarded investors with a total return of over 1,000% from 1999-2009. The stock has been left in the dust in the past two years, however — from its April 2010 high near $65, Teva is off nearly 40% even as the broader pharmaceutical sector has gained ground. Teva has been hit by concerns about rising competition and the potential loss of exclusivity on a key drug, but the stock is beginning to look like a value at these levels.


The IMS Institute for Health Care Infomatics is calling for the market share of branded drugs (which stood at 70% in 2005) to drop from 64% in 2010 to 53% in 2015 as the use of generics increases. In addition, a number of brand-name drugs are losing exclusivity in 2012, to the tune of a total sales volume of $28 billion. Both of these trends work in Teva’s favor.

Although Teva is a profitable company with important long-term trends working in its favor — analysts are looking for 13% EPS growth in 2012 — the stock has been left for dead. Among the numbers investors should take into account: The trailing P/E, at 12, is less than half the five-year average of 24.6. (The forward P/E is even more attractive at 7.2.) Price-to-book stands at 1.6 versus the five-year average of 2.4, while price-to-sales is at 2.1 versus 3.3. What’s more, Teva yields 1.7%, and management recently announced a buyback program worth $3 billion. With numbers like these, it looks like it finally might be time for this fallen angel to start playing catchup with its industry peers.

3 Forgotten Stocks Worth Reconnecting With in 2012 -  Ericsson

By now, the broadband theme is well-known: Rising smartphone and tablet usage is creating a surge in demand for broadband capacity, and telecom operators’ ability to meet this fast-growing capacity is limited. But what seems to have been lost on investors is that Ericsson — the market-share leader in providing the equipment and services that will help operators meet demand in the years ahead — still is one of the companies that is positioned to capitalize on this trend.


Nevertheless, the growth-stock darling of the 1990s now is a value play, with a forward P/E of 10.8 (and 8.6 net of cash), a trailing price-to-sales ratio of 0.98 (versus a five-year average of 1.3%), $6.7 billion in cash and a dividend yield of 3.6%. The stock was off 11% in 2011.

It might require patience for the market to pick up on the potential value here, but a look at the total picture reveals meaningful upside potential and limited downside risk from this level.

The bottom line: All three of these somewhat-forgotten market leaders have the potential to provide market-beating returns in the year ahead, even if the broader investment environment remains challenging.

Top 5 best Blue-Chip Stocks to invest for January in 2012

This month, I’m shaking up the Top 5 list. Although I’m keeping two Top 5 veterans on the list, three blue-chip companies are also poised to pop this month, and I want to make sure that you’re ready to capitalize on this opportunity.

I want to have a smooth ride going into the new year, so this month’s Top 5 is made up of all conservative stocks that thrive during the late winter months. Be sure to add some of these premium stocks before they take off.

Top 5 Best Blue-Chip Stocks to invest for January in 2012:Alexion Pharmaceuticals

Alexion Pharmaceuticals LogoAlexion Pharmaceuticals (NASDAQ:ALXN) continues its winning streak this month as the No. 1 Top 5 stock on my buy list. In early December, the company enjoyed a major windfall as European Union regulators approved a new use for Soliris, the company’s only approved drug. Soliris will now treat atypical Hemolytic-uremic syndrome, a severe blood disorder that became an epidemic in Germany in May 2011. This treatment, which will launch in the first half of the new year, will be a boon to the company because Alexion gets the benefit of a new customer base with relatively minor up-front costs.

Also, the company is headed toward another stunning earnings announcement on Feb. 6. Analysts currently expect Alexion to grow sales by 41.7% and earnings by 30.8%. In addition, the analyst community has revised its earnings-per-share estimates 13% higher in the past three months, which suggests another hefty earnings surprise for Q4 2011.
Top 5 Best Blue-Chip Stocks to invest for January in 2012: Reynolds American

Reynolds American (NYSE: RAI)Reynolds American (NYSE:RAI) is the ultimate value stock. After releasing Q3 earnings results in late October, the tobacco giant increased its already-hefty dividend by 5.7%. A few weeks later, company leadership authorized a massive $2.5 billion stock buyback program to be carried out over the next two-and-a-half years. And signs are pointing to tremendous Q4 operating results when the company releases earnings on Jan. 30.

Analysts currently expect the company to grow earnings by 15%, a significantly higher rate than the 9.9% forecast for the rest of the tobacco industry. Also, in the past month, analysts have revised their earnings estimates 3% higher, whereas they have decreased their earnings estimates for many of its competitors — analyst earnings revisions like this typically precede earnings surprises.

Top 5 Best Blue-Chip Stocks to invest for January in 2012: McDonald’s

MCDMcDonald’s (NYSE:MCD) is an institution in the fast-food industry, but this company is doing anything but sitting on its laurels. In the past month, this company has switched out one of its major egg suppliers and announced a $400 million plan to upgrade its restaurants with flat-screen TVs, padded seats and wooden tables.

All of these developments have clearly paid off — management recently announced that McDonald’s global same-store sales boomed 7.4% in November. Even in the U.S., sales rose 6.5% — according to management, the McCafe Peppermint Mocha succeeded in bringing in customers looking for an inexpensive holiday treat. In Europe, McDonald’s also brought in a 6.5% gain. All of these figures easily topped the 4.2% sales growth forecast by Street analysts. McDonald’s is living proof that an “old dog” can learn new tricks, and I’m excited to see what other changes this company announces.
Top 5 Best Blue-Chip Stocks to invest for January in 2012:Dominion Resources

dominion resourcesDominion Resources (NYSE:D) is the perfect winter-weather stock. Its customers in Virginia and North Carolina are cranking up the heat as the temperature continues to drop, which means increased profits for its Dominion Virginia Power segment. This makes conditions ripe for stunning Q4 earnings. One of the reasons I added this company to my buy list in December is because this company is incredibly resilient. In Q3, Dominion weathered not only Hurricane Irene, but also a 5.9-magnitude earthquake that struck its North Anna nuclear power station. Despite the combined $87 million cost from these natural disasters, the company still managed to grow earnings more than expected.

Looking forward, management expects higher revenues for Q4, as well as an increase in earnings per share thanks to the company’s aggressive stock buyback programs. The company doesn’t report earnings until Jan. 23, so there is plenty of time to load up on this stock in anticipation of the earnings report.
Top 5 Best Blue-Chip Stocks to invest for January in 2012: VF Corp.

VF Corp LogoIn my article “New Year’s Prediction #4: Retail, the Hottest Sector of 2012,” I mentioned I had another retail recommendation up my sleeve for 2012. With more than $9 billion in annual sales, VF Corp. (NYSE:VFC) is the world’s largest apparel company, and it’s easy to see why. The company is responsible for designing and manufacturing apparel, footwear and travel accessories for at least 20 major brands. In Q4 2011, VF Corp.’s sales rose 23% to $2.75 billion compared with $2.23 billion in Q3 2010.

Looking to Q4 2011 , the analyst community predicts 37% sales growth and 32% earnings growth. In the past three months, the analyst community has revised their consensus earnings estimate 7.6% higher. Typically, like with Reynolds American, positive earnings estimates precede future earnings surprises. VF Corp. is anticipated to benefit immensely from strong consumer spending this holiday season. This company also has the fourth-highest dividend yield in the Apparel industry, weighing in at 2.1%.

Top 10 Dow Dividend Stocks to invest in 2012

It was a crazy year for every component of the Dow Jones Industrial Average. The best Dow stock was McDonald’s (NYSE:MCD), up 31%, and the worst was Bank of America (NYSE:BAC), down almost 60%. But despite those outliers, the broader index moved only slightly upward to tally a 6% gain on the year.

Of course, dividend investors got an even better return if they played the right stocks with the right yields. Many Dow stocks pay an annual dividend worth 3% of their current share price — not a bad return on your investment in this choppy market! And some pay dividends as high as 6%.

So which companies make the best income investments in the Dow? Here’s a list of the top 10 Dow dividend stocks so you can see for yourself:

Top 10 Dow Dividend Stocks to invest in 2012#10: Kraft, Chevron, JPMorgan and Microsoft

There is a very crowded pack in the Dow when it comes to stocks with a yield of around 3%, give or take a few hundredths of a percentage point. The companies include:

* Kraft (NYSE:KFT) — the consumer staples powerhouse locked in gains of 19% in 2011.
* Chevron (NYSE:CVX) — the oil powerhouse climbed 17% in 2011.
* JPMorgan Chase (NYSE:JPM) — a loss of 22% sounds ugly, but not compared to many of its big banking peers.
* Microsoft (NASDAQ:MSFT) — a lackluster 7% loss in 2011 held back this top tech stock.

Rather than cherry-pick a company (Kraft is the nominal winner with a 3.09% yield as of Friday’s close) only to have the list reorder in a few days, it seems best to list them all — though personally I find the presence of JPMorgan most noteworthy, as financial stocks have only recently been returning to the ranks of dividend payers.

Top 10 Dow Dividend Stocks to invest in 2012#9: Procter & Gamble

Procter & Gamble (NYSE:PG)Current Dividend Yield: 3.1%
2011 Performance: +4%

Procter & Gamble (NYSE:PG) has pretty much tracked the broader Dow Jones Industrial Average this year, squeaking out a small gain of around 4% for all of 2011. The consumer products giant has relied on the power of P&G brands like Gillette, Pampers and Duracell to provide reliable revenue — and reliable dividend payments to shareholders. Revenue and profits haven’t been growing at a breakneck pace, to be sure, but there’s something to be said for stability in a volatile market. The company has paid dividends since 1891.

Top 10 Dow Dividend Stocks to invest in 2012#8: Intel

Intel INTCCurrent Dividend Yield: 3.4%
2011 Performance: +16%

Semiconductor giant Intel (NASDAQ:INTC) might not seem like the place to look for big dividends. However, its 3.4% yield easily ranks it in the top 10 Dow dividend stocks. You also might think INTC isn’t doing so well right now, considering weak consumer and business spending. Wrong on that count, too. The chipmaker has posted big gains in 2011 thanks to impressive baseline demand for high-tech items. After all, it’s not like computers are becoming less common because of the downturn — if anything, they are more crucial than ever before to boost productivity. INTC is riding eight straight quarters of year-over-year revenue growth right now.

Top 10 Dow Dividend Stocks to invest in 2012#7: Johnson & Johnson

Johnson & Johnson (NYSE:JNJ)Current Dividend Yield: 3.5%
2011 Performance: +6%

The first health care stock on the list of top 10 Dow dividend stocks is Johnson & Johnson (NYSE:JNJ) — but a few more are yet to come. The company is part-pharmaceutical giant thanks to prescription drug offerings like vaccines, and part-consumer health company thanks to products like Band-Aid and Tylenol. Revenue admittedly has been a bit stagnant at J&J during the past few years; however, earnings per share continue to improve. J&J is a sleepy play, but tracking the market for a decent gain — and a 3.6% dividend to boot — doesn’t seem like anything to sneeze at after a challenging 2011.

Top 10 Dow Dividend Stocks to invest in 2012#6: DuPont

Dupont (NYSE:DD)Current Dividend Yield: 3.6%
2011 Performance: -8%

E.I. du Pont de Nemours & Company (NYSE:DD), a.k.a. DuPont, has lagged the market so far in 2011. Dividend investors still should take note of this chemical giant, however. The 3.6% yield is one of the best in the Dow Jones Industrial Average, and DuPont could be a good long-term investment for the inevitable recovery — because even if there is a tough market for another year or two, DuPont will hang tough and pay a good dividend while you wait. As a specialty chemical company, DD provides materials for a host of products in all corners of the market. Once demand picks up, so will DD stock.

Top 10 Dow Dividend Stocks to invest in 2012#5: General Electric

General Electric GECurrent Dividend Yield: 3.8%
2011 Performance: -2%

General Electric (NYSE:GE) might forever be tarnished in the minds of some dividend investors after slashing its payout by two-thirds during the financial crisis. While the quarterly dividend remains about half of what it was — at just 17 cents vs. 31 before the market meltdown — the subsequent flop in GE stock managed to result in a very respectable yield. Revenue continues to slide for the conglomerate, which is a concern, but earnings remain robust and the dividends remain rich in relation to the stock’s current valuation.

Top 10 Dow Dividend Stocks to invest in 2012#4: Pfizer

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2011 Performance: +24%

Pfizer (NYSE:PFE) has outperformed the market nicely in 2011 with one of the best returns in the entire Dow Jones. Yes, it faces the same challenge that persists across all of Big Pharma — looming patent expirations, challenges from generic medications and the frantic race to lock up patients in emerging markets. But the company has a decent research pipeline with some up-and-coming drugs that could rotate in to prop up revenues. Most importantly for dividend investors, the company has $29 billion in cash as of its third-quarter earnings report. With a forward P/E of less than 10 even after this run, there may be more upside for Pfizer in 2012. And if the stock gains don’t blow you away, that 4% dividend is a nice benefit.

Top 10 Dow Dividend Stocks to invest in 2012#3: Merck

Merck & Co. (NYSE:MRK)Current Dividend Yield: 4.5%
2011 Performance: 5%

Merck (NYSE:MRK) is very similar to Pfizer, except for its mostly market-tracking performance in 2011. It, too, faces patent expirations and is hoping its pipeline will step up to fill the void. It, too, is trading for a bargain P/E of under 10. It, too, pays a dividend well north of 4%. A huge $41 billion buyout of rival Schering-Plough in 2009 should help provide new areas of growth, and the company has managed to post four straight year-over-year revenue beats in the quarters since Schering-Plough was integrated into operations. Throw in solid cash flow and a history of dividends since 1935, and you can understand why this stable company is a bedrock buy for many portfolios.

Top 10 Dow Dividend Stocks to invest in 2012#2: Verizon

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Of course, dividend investors got an even better return if they played the right stocks with the right yields. Many Dow stocks pay an annual dividend worth 3% of their current share price — not a bad return on your investment in this choppy market! And some pay dividends as high as 6%.

2011 Performance: +12%

Verizon (NYSE:VZ) is the leading wireless telecom provider in the U.S. by subscriptions. The company also is one of the top high-speed Internet providers in America via its FiOS fiber optic network. As the world becomes increasingly wired, it’s more important than ever before for companies like Verizon to be involved with the operations of businesses and the lives of regular Americans. This provides a very stable revenue stream that accounts for huge dividends. What’s more, Verizon’s EPS for the fiscal year are on track to tally over $2.20 — easily double the 90 cents per share earned in fiscal 2010. A target of $2.50 for fiscal 2012 shows there’s more growth to come, too.

Top 10 Dow Dividend Stocks to invest in 2012#1: AT&T

AT&T TCurrent Dividend Yield: 5.8%
2011 Performance: +3%

One of the biggest stories in 2011 was that AT&T (NYSE:T) tried to leapfrog rival Verizon in the wireless market via a buyout of T-Mobile. But regulators ran interference, and AT&T abandoned its bid. Don’t think that means the biggest dividend payer in the Dow Jones Industrial Average should be cut loose from your portfolio. With a dividend yield of about 6%, this is a heck of an income play. After all, 10-year T-Notes are around 2% — roughly a third of AT&T’s dividend yield. Red-hot growth might not be ahead, but AT&T is a stable company with a great dividend that’s not going anywhere. That’s the kind of investment many investors are impressed with after a volatile 2011.

5 Cruise and Car Stocks to Sell in 2012

Are you thinking about taking a cruise anytime soon? How about buying a new car?

No? Well, not surprisingly, many investors are feeling the same way. In this economy, people are scaling back and saving up. That new car is being eschewed for auto maintenance, and that Disney cruise with the family is being sidelined for a road trip to your Aunt Mary’s. Although the auto industry isn’t as bad as it was during the bailouts, companies like Ford (NYSE:F) and General Motors (NYSE:GM) haven’t exactly been bastions of growth and excitement, save for Ford’s late-to-the-party, lower-than-average dividend payout.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I’ve got five automotive and international cruise line stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”


5 Cruise and Car Stocks to Sell in 2012 : Carnival (NYSE:CCL) is an international cruise company. In the last 12 months, CCL shareholders have watched the stock slip 29%. CCL stock gets a “D” for operating margin growth and a “D” for cash flow. For more information, view my complete analysis of CCL stock.

5 Cruise and Car Stocks to Sell in 2012:Ford (NYSE:F) is likely the most well-known American automaker. Year-to-date, F stock is down 37% compared to a gain of 4% for the Dow Jones Industrials. F stock gets a “D” for operating margin growth and a “D” for earnings growth in my Portfolio Grader tool. For more information, view my complete analysis of F stock.

5 Cruise and Car Stocks to Sell in 2012:General Motors (NYSE:GM) is another giant global automotive maker. Since the start of 2011, GM stock has lost a staggering 45% compared to gains by the broader markets. GM stock gets an “F” for earnings growth, an “F” for earnings momentum and a “D” for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of GM stock.

5 Cruise and Car Stocks to Sell in 2012:Johnson Controls (NYSE:JCI) provides a variety of products, including automotive interiors and energy-saving products for buildings. JCI has suffered a loss of 22%, year-to-date. JCI stocks gets a “D” for operating margin growth, a “D” for its ability to exceed the consensus earnings estimates on Wall Street 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 JCI stock.

5 Cruise and Car Stocks to Sell in 2012:Royal Caribbean (NYSE:RCL) is the second large cruise line that makes the list. Since the start of 2011, RCL is down 48% compared to gains by the broader markets. RCL stock gets an “F” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of RCL stock.

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

The Most Profitable Companies Stcoks to Invest In America 2012

Looking for the best buys on the market right now? We may have the investing answer you’ve been waiting for.All stock prices are driven by profit projections, and a handful of American companies just posted impressive 2010 profits. Firms with a clear vision of how to increase value for shareholders could be a terrific buy right now. But companies without a good game plan will likely see their stock prices fall as they fritter away their earnings.
The hardest part? Learning to separate the former from the latter. Here’s a list of the most profitable companies in America, along with our prediction of which direction the stock is heading.

The Most Profitable Companies To Invest In NO.17: Citigroup (NYSE: C) – $10.6 Billion

For many years, Citigroup (NYSE: C) was the most profitable banking firm in the United States. But a series of foolish moves allowed JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) to surpass them.

To get back to the head of the pack, Citigroup is repositioning itself as a key player in fast-growing emerging economies. Indeed, Citigroup now derives more than half its revenue from abroad.

Although the bank’s turnaround is not yet complete, the story should become a lot cleaner with each passing quarter, and eventually, investors should embrace the bank as a way to hedge against a falling dollar and as a way to have greater exposure to more dynamic economies elsewhere.

The Most Profitable Companies To Invest In NO.16: ConocoPhillips (NYSE: COP) – $11.4 Billion

Despite low profit margins, ConocoPhillips (NYSE: COP) has strengths in many areas: solid stock price performance, attractive valuation levels, robust revenue growth and compelling net income growth.

And if you think oil will continue to be expensive in the future, ConocoPhilips could be the ultimate value stock. The current dividend yield is 3.4% and management has a reputation for allocating capital to shareholders in the form of dividend increases and share buybacks — all good news for investors.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies To Invest In NO.15: Intel (Nasdaq: INTC) – $11.5 Billion

If you own a smartphone, you are an indirect customer of Intel (Nasdaq: INTC). Though they don’t manufacture or sell any smartphone components, Intel makes processors that help data center servers keep up with the demand, and the smartphone boom has been nothing but good for the company.

In addition to its profit-generating ability, Intel also has huge cash hoards. Using its cash to acquire fast-growing firms can be an effective way to boost its own growth, so look for Intel to get in on the market’s M&A activity in the coming months.
Photo courtesy of Flickr- Josh Bancroft.



The Most Profitable Companies Invest In NO.14: General Electric (NYSE: GE) – $11.6 Billion

It’s 2010 profit results are all well and good, but the historical numbers show that General Electric (NYSE: GE) has lost its way and needs a turnaround to return to the growth heyday it experienced while under the fearless leadership of Jack Welch.

GE Capital, GE’s massive finance arm, was a major profit driver under Welch, but it nearly ruined the company during the financial crisis. Back in 2007, GE Capital accounted for 55% of net income. That share fell to 13% in 2009.

Current CEO Jeffrey Immelt has a goal to limit GE Capital to no more than 40% of profits going forward, though it only recovered to 28% of profits in 2010, so it has some way to reach that level. GE will inevitably turn around its operations at some point, but there is no need for investors to wait for the company to find its way.
Photo courtesy of Flickr- Matt Millard.



The Most Profitable Companies Invest In NO.13: Coca-Cola (NYSE: KO) – $11.8 Billion

The world’s biggest soft drink maker, Coca-Cola (NYSE: KO), recently posted strong first quarter results, with a comparable net income of $6.4 million. With a powerful global distribution network, Coca-Cola products are currently sold in more than 200 countries and boast 500 different beverage brands. In the coming years, more than $20 billion will be spent to expand into emerging markets like Africa, Russia, Mexico and China.

Helping drive growth is the recent acquisition of Coca-Cola Enterprises, the company’s largest bottling unit in North America. It will now be cheaper for the company to produce and bottle smaller scale products — like the 100-calorie Coke can — to cater to calorie-conscious consumers.

Through the acquisition, Coke expects to improve business operations by better controlling product distribution so it can more quickly respond to changing market demand. As a result, Coke expects to save more than $350 million a year for the next four years. These savings should mean good news for shareholders.
Photo courtesy of Flickr: Kyle May.



The Most Profitable Companies Invest In NO.12: Wells Fargo (NYSE: WFC) – $12.4 Billion

One thing has been clear about Wells Fargo (NYSE: WFC): the San Francisco-based bank seems to have adroitly sidestepped a great deal of the potholes besetting the banking sector the past few years. It hasn’t been immune to the powerful forces of a down economy, but at least its management hasn’t been pilloried by the press (like Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS)), and it didn’t make life-threatening bad investments that led to government handouts (like Citigroup).

Restrictions put in place when the TARP program was in effect have limited the annual dividend, but banking analysts think the payout ratio will eventually rebound to 30%, implying a $1.08 dividend based on 2012 profit forecasts. As the economy improves, the dividend could move even higher, creating the impetus for a dividend yield above 4% when measured against today’s stock price.

And it certainly doesn’t hurt to have Warren Buffett as your co-investor. Buffett’s continued bullishness on the bank should be heartening to even the most bank-ophobic investors.
Photo courtesy of Flickr — Neubie.

The Most Profitable Companies Invest In NO.11: Procter & Gamble (NYSE: PG) – $12.7 Billion

After selling Pringles, Procter & Gamble (NYSE: PG) is officially out of the foods game. They are currently taking active steps to distance themselves from competition by expanding their health care brands into overseas markets, mainly in China and India.

P&G is also taking advantage of the rise in e-commerce popularity, recently entering the e-commerce market with an e-store. This new strategy has seen significant penetration in North America and Asia, where they are able to extend their reach into under-served, emerging markets.
Photo courtesy of Flickr – Brandon C.



The Most Profitable Companies Invest In NO.10: Berkshire Hathaway (NYSE: BRK) – $13.0 Billion

Warren Buffett has relayed numerous times that future growth rates at Berkshire Hathaway (NYSE: BRK-A) will fall below historical growth trends, but he still thinks there is potential for investors to earn above-average returns by investing in the stock. Just take the past two years as an example — book value grew 19.8% in 2009 and 13% in 2010.

This suggests Berkshire is still able to compound wealth at a double-digit rate going forward. And regardless of growth rates, the company is so well-managed that it’s difficult to imagine it even being unable to generate large profits for shareholders.

Last year, Berkshire hired money manager Todd Combs to help reshape the company’s $63.2 billion equity portfolio. Combs didn’t wait long to make his first big move, as Berkshire recently reported a stake in MasterCard, Inc. (NYSE: MA), valued at $54.4 million.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies Invest In NO.9: Johnson & Johnson (NYSE: JNJ) – $13.3 Billion

Johnson & Johnson (NYSE: JNJ) has increased its dividends for the past 48 straight years, at an average rate of about 13.4% per year since 2000. If you purchased 200 shares of JNJ in 1980 (an investment of $14,600) and never added new money but just reinvested all the dividends, the position would be worth $1.15 million today. That’s a 7,868% return.

In other words, it’s like buying a house in 1980 for $146,000 that today is worth about $11.5 million. Home values didn’t appreciate anywhere near that much. That’s the power of growing dividends.
Photo courtesy of Flickr – aldinegirl87.



The Most Profitable Companies Invest In NO.8: Apple (Nasdaq: AAPL) – $14.0 Billion

There is only one large U.S. corporation that can truly be called a growth stock: Apple (Nasdaq: AAPL). The company’s performance was impressive enough that net income rose from $8.2 billion in 2009 to $14 billion in 2010.

What’s more impressive is the road ahead. Merrill Lynch predicts Apple will earn $34 billion by 2013, putting it at a close second behind ExxonMobil for the claim of America’s most profitable company.
Photo courtesy of Flickr — Bacr Aptemob.



The Most Profitable Companies Invest In NO.7: Int’l Business Machines (NYSE: IBM) – $14.8 Billion

Int’l Business Machines (NYSE: IBM), affectionately referred to as Big Blue, is a titan in the technology industry. The company generated almost $100 billion in revenue last year and is about as diversified a technology company as can be found, spanning software, services, hardware and financing.

IBM’s presense abroad makes it fantastic play in a weak dollar environment — just over one-third of sales stem from the United States, with the rest being generated in Europe, Asia and the rest of the world.
Photo courtesy of Flickr — Patrick H~.



The Most Profitable Companies Invest In NO.6: Wal-Mart Stores Inc. (NYSE: WMT) – $16.4 Billion

Despite falling same-store sales in the U.S. for two consecutive years, Wal-Mart (NYSE: WMT) posted a profit in both 2010 and Q1 of 2011. Their average U.S. shopper spent more per visit in Q1 of 2011, and their U.S. same-store sales of groceries and health and wellness items has increased for two consecutive quarters.

Wal-Mart’s domestic foot traffic is down, but international sales are soaring. Their profits have come largely from an 11.5% increase in international sales, offsetting the impact of the domestic slump with strong gains in all countries except Japan.

Wal-Mart is a well-run company that has historically provided long-term value to its stockholders, so don’t be discouraged by the domestic sales slump, they are still turning profits.
Photo courtesy of Flickr — Walmart Stores.



The Most Profitable Companies Invest In NO.5: JPMorgan Chase (NYSE: JPM) – $17.4 Billion

The entire banking sector is still wheezing back to life, so the next few years could represent a return to traditional banking profit margins. Notably, analysts’ forecasts anticipate subdued lending activity in 2011 and 2012 and, more than likely, bank profits will be meaningfully higher again in 2013 and beyond, granted the economy is truly healthy (and the housing market gets out of the sickbed).

Therefore, the opportunity to buy shares of banks like JP Morgan Chase (NYSE: JPM) while they trade for less than 10 times 2012 profits looks quite appealing. Trouble is, some investors are convinced that we haven’t seen the end of the mortgage crisis. So buying these bank stocks today certainly carries some short-term risk that more funds will need to be set aside to cover future liabilities.
Photo courtesy of David R. Tribble.



The Most Profitable Companies Invest In NO.4: Microsoft (Nasdaq: MSFT) – $18.8 Billion

There are some who believe that Microsoft’s (Nasdaq: MSFT) best years are behind it and the company is riding into the sunset. While Microsoft is no longer synonomous with tech’s tomorrow (see Google, Facebook and Apple), there is no denying that company is still a cash cow.

Microsoft just announced its acquisition of Skype in a deal valued at $8.5 billion. Microsoft plans on intregrating its technology with the XBox console, Kinect device and its Windows Phone platform. This may be the deal that yields the strategic benefits Microsoft needs to stop following the leaders in the industry, and start leading again.
Photo courtesy of Flickr — Robert Scoble.



The Most Profitable Companies Invest In NO.3: Chevron (NYSE: CVX) – $19.0 Billion

Chevron (NYSE: CVK) is a top-five oil firm, given its vast reserves of oil and natural gas. Growth during the past decade has been stellar, as sales have improved 15.5% and earnings by 17.5% on average each year in the past decade. Growth is projected to continue apace, with the earnings consensus for this year at $12.12 a share, or nearly 30% above last year’s levels.

At the current price, Chevron offers the solid combination of a low earnings multiple, a decent dividend yield of 2.7% and strong projected growth. And nearly 60% of last year’s stales stemmed from overseas, giving the company exposure to faster-growing regions outside of the United States.
Photo courtesy of Flickr — Jonathan McIntosh.



The Most Profitable Companies Invest In NO.2: AT&T (NYSE: T) – $19.9 Billion

AT&T (NYSE: T) posted a $19.9 billion 2010 net income, and $1 billion of that money is being invested in the cloud computing business in 2011. This will help AT&T achieve tremendous efficiencies and flexibility in cloud-based environments in order to provide applications for any type of device.

AT&T also just acquired T-Mobile for $39 billion, which helps the company vastly expand its broadband network and possibly position itself as market leader in the U.S. wireless industry.
Photo courtesy of Flickr — Chris Young.



The Most Profitable Companies Invest In NO.1: Exxon Mobil (NYSE: XOM) – $30.5 Billion

There’s no debate over how Exxon Mobil (NYSE: XOM) will use its prodigious profits. The energy giant has spent eight years buying back stock, and there’s no indication that it will stop now. Exxon Mobil has bought back two billion shares since 2002, leading to a 29% reduction in its share count.

Assuming Exxon Mobil will once again focus on stock buybacks, the share count may drop from the current 4.8 billion to just four billion by the middle of 2013. For a company with $30 billion in annual income, the shrinking share count could mean record profits per share.

Best Stocks To Invest in January 2012

My investment strategy seeks out stocks that are cheap relative to their growth rate — referred to as growth at a reasonable price, or GARP. To that end, I seek out stocks that are selling at low price-earnings-to-growth, or PEG, ratios.

The price-to-earnings, or P/E, ratio is a measure of risk. It calculates the multiple of earnings an investor is willing to pay. The higher the multiple, the greater the stock price will react to changes in earnings per share. A stock sporting a lower multiple is considered safer because of the lesser impact that earnings has upon stock price. Lower-P/E stocks tend to compensate investors by paying dividends.

Best Stocks To Buy For 2012: F.N.B. Corporation (FNB)

F.N.B. Corporation, through its subsidiaries, provides various financial services to consumers and small to medium-sized businesses. The company operates in four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. The Community Banking segment offers various commercial banking services, including commercial and individual demand, savings, and time deposit accounts; and commercial, mortgage, and individual installment loans. The Wealth Management segment provides a range of personal and corporate fiduciary services, such as the administration of decedent and trust estates. It also offers various alternative products, including securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment operates as a full-service insurance agency that offers commercial and personal insurance through various carriers; acts as a reinsurer to underwrite credit life, and accident and health insurance; and offers title insurance products. The Consumer Finance segment involves in making personal installment loans to individuals; and purchasing installment sales finance contracts from retail merchants. As of December 31, 2009, it had 224 community banking offices in Pennsylvania and Ohio, and 57 consumer finance offices in Pennsylvania, Ohio, and Tennessee. The company was founded in 1974 and is headquartered in Hermitage, Pennsylvania.
Best Stocks To Buy For 2012: STEC Inc. (STEC)

STEC, Inc. designs, manufactures, and markets enterprise-class flash solid-state drives (SSDs) for use in high-performance storage and server systems. Its solid-state drive products include ZeusIOPS SSDs, which provide enterprise-class data storage solutions; and MACH-class SSDs that are small form factor storage solutions for mission-critical systems in various industries. The company?s flash cards and flash module products comprise ATA PC Cards for equipment requiring standard form factors and moderate capacities, such as data recorders, avionics systems, and telecommunication applications; CompactFlash products, which provide interoperability with systems based on the PC Card ATA standard by using a passive adapter; flash modules; secure digital memory cards; USB flash drives; and single chip drives. It also offers dynamic random access memory (DRAM) products, which include dual in-line memory modules (DIMMs), small-outline DIMMs, mini-registered DIMMs, very low profile registered DIMMs, and fully-buffered DIMMs for computing, communications, and industrial applications. In addition, the company provides integrated circuit tower stacked components for thin small outline package and ball grid array semiconductor packages for use on memory modules and within high capacity flash products; DRAM modules with stacked components for use primarily in high-performance servers, workstations, switches and routers, and other custom systems; and flash products with stacked components. It sells its products through direct sales force and original equipment manufacturer distributors in the United States and internationally. STEC, Inc. was founded in 1990 and is headquartered in Santa Ana, California.

Advisors’ Opinion:

* Curtis2011-8-26Stec is the only provider qualified and shipping product in the Enterprise Storage Market for Fibre Channel and SAS interface drives. While competition appears inevitable in the market in the future, the brokerage believes the company has a strong technological and qualification lead at the OEMs, which should enable it to maintain market share leadership in the future.”Given our expectation that the Enterprise Storage SSD market is likely to be significantly up in 2011 over 2010, and STEC appears likely to maintain an edge over competition in terms of technology and, hence, market share, we believe STEC shares at current levels do not capture the potential upside in terms of market potential or competitive positioning,” the analysts said.
Best Stocks To Buy For 2012: Imergent Inc. (IIG)

Advisors’ Opinion:
* Zacks2011-10-24iMergent, Inc. (IIG) said it made progress on all fronts and delivered a solid fiscal first quarter performance in early November. The company, which provides eCommerce and software for small businesses and entrepreneurs, stated that strong domestic sales and a reinvigorated international program spawned fiscal first-quarter revenue of $29 million, compared to $11.4 million a year earlier. Furthermore, net income reached 18 cents per share, reversing a year-ago loss. Net dollar volume of contracts written was $32.4 million, compared to $17 million. Shares of iMergent jumped 38% during November and reached a new 52-week high on the 16th of the month.iMergent increased its guidance for full year 2007 due to strong demand and response to its marketing. Net dollar volume of contracts written is expected to grow between 25% and 30% from fiscal 2006.
Best Stocks To Buy For 2012: Modine Manufacturing Company (MOD)

Modine Manufacturing Company engages in the development, manufacture, and marketing of heat exchangers and systems for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and to various building, industrial, refrigeration, and fuel cell markets. It offers power train cooling products, including engine cooling modules, radiators, charge-air-coolers, condensers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation coolers, engine oil coolers, fuel coolers, charge-air-coolers, and intake air coolers; oil coolers consisting of transmission oil coolers and power steering coolers; and fuel coolers. The company also provides gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; hydronic products, including commercial fin-tube radiation, cabinet unit heaters, and convectors; roof mounted direct and indirect fired makeup air units; unit ventilators; close control units for precise temperature and humidity control applications; chillers; ceiling cassettes; and condensing units and coils for heating, refrigeration, air conditioning, and vehicular applications. Its customers include truck, automobile, bus, specialty vehicle, agricultural and construction, and heating and cooling OEMs; construction contractors; wholesalers of plumbing and heating equipment; fuel cell manufacturers; engine manufacturers; industrial manufacturers of material handling equipment, generator sets, and compressors; and various end users. The company offers its products primarily in North America, Europe, South America, Africa, and the Asia/Pacific. Modine Manufacturing Company also exports its products. The company was founded in 1916 and is headquartered in Racine, Wisconsin.

7 Metal and Mining Stocks to Sell in 2012

7 Metal and Mining Stocks to Sell in 2012

Precious metals are in focus as uncertainty reigns in the market, but don’t think it means that all metal and mining stocks are a good investment. Many of these companies also deal with base metals like aluminum and copper — commodities in scarce demand as the global manufacturing sector continues to see headwinds.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I’ve got seven metal and mining stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Agnico-Eagle Mines (NYSE:AEM) is a Canadian-based international gold producer. AEM stock has had a rough year, down 44% since the start of 2011.

Aluminum Corp. of China (NYSE:ACH) produces alumina, primary aluminum and aluminum fabrication in the People’s Republic. Like other metal and mining stocks, ACH has dropped big — 50% year-to-date.

ArcelorMittal (NYSE:MT) is a global steel producer that shipped approximately 85 million tons of steel in 2010. MT stock has been one of the biggest losers, down 60% year-to-date.

HudBay Minerals Inc. (NYSE:HBM) owns copper, zinc and gold mines, ore concentrators and zinc production facilities all across North America. A 50% loss year-to-date for HBM stock has shareholders questioning their initial investment.

Freeport-McMoran Copper & Gold (NYSE:FCX) is a mining company that works with copper, gold and other metals. Since the start of 2011, FCX stock has dipped 42%.

United States Steel (NYSE:X) is a producer of integrated steel products headquartered in Pittsburgh, Pa. Year-to-date, its stock has dropped 60% compared to a loss of just 1% for the Dow Jones.

Vale (NYSE:VALE) works with nickel, iron ore and iron ore pellets, manganese ore, ferroalloys, aluminum, fertilizers, copper and coal. VALE stock is down 34% year-to-date, compared to much smaller losses by the broader markets.

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

2012 Banks Burned by Europe — Thursday’s IP Market Recap

Budding optimism this week for solutions to the European debt crisis ground to a halt Thursday as the head of the European Central Bank gave a pessimistic outlook for tomorrow’s Brussels meeting, killing the market’s three-day climb and sending bank shareholders to the exits.

While the ECB dropped interest rates to an all-time low 1% and said it would open up three-year loans to euro zone banks, negative comments about the low possibility of lending to the International Monetary Fund — which then would lend the money to euro zone members in a form of quantitative easing — soured the markets. The Dow Jones tumbled nearly 200 points by day’s end.

European financials like Royal Bank of Scotland (NYSE:RBS, -7.93%) and Deutsche Bank (NYSE:DB, -7.76%) were torched, as was U.S.-based Morgan Stanley (NYSE:MS, -8.42%), which is thought to have significant exposure to a European debt crisis. The fallout also trickled down to national banking giants Citigroup (NYSE:C, -6.97%), JPMorgan Chase (NYSE:JPM, -5.24%) and Bank of America (NYSE:BAC, -5.09%).

Electric vehicle maker Tesla Motors (NASDAQ:TSLA) had more than enough problems without the general market sentiment Thursday, with TSLA stock plunging almost 10% to $30.89 after Morgan Stanley’s Adam Jonas hacked his price target by 37% and downgraded Tesla to underweight. Jonas expressed satisfaction with Tesla’s performance, with the pessimism instead focused toward the entire electric vehicle industry.

On the opposite side of the spectrum, Affymax (NASDAQ:AFFY) — whose stock suffered through a roller-coaster ride earlier this week hinging on the fate of its experimental anemia medicine, peginesatide — spiked Thursday on news that advisers to the Food and Drug Administration would back its drug.

During the day, Affymax stock almost reached $8.50, its highest point since June 2010, when AFFY shares took a 70% hit after the company’s trial anemia drug — then called Hematide — was reported to have greater cardiovascular risks than an existing Amgen (NASDAQ:AMGN) product. Affymax stock finished Thursday at $7.99, up 36%.
Three Up

* DemandTec (NASDAQ:DMAN): Up 55.99% ($4.72) to $13.15.
* Coinstar (NASDAQ:CSTR): Up 7.84% ($3.45) to $47.45.
* Sodastream International (NASDAQ:SODA): Up 2.36% (83 cents) to ($35.96).

Three Down

* Melco Crown Entertainment (NASDAQ:MPEL): Down 6.7% (65 cents) to $9.05.
* Nokia (NYSE:NOK): Down 6.19% (33 cents) to $5.
* Juniper Networks (NASDAQ:JNPR): Down 5.91% ($1.26) to $20.05.

As of this writing, Kyle Woodley did not hold a position in any of the aforementioned stocks. Check out our list of previous IP Market Recaps.

The Most Profitable Companies Invest In America 2012

Looking for the best buys on the market right now? We may have the investing answer you’ve been waiting for.All stock prices are driven by profit projections, and a handful of American companies just posted impressive 2010 profits. Firms with a clear vision of how to increase value for shareholders could be a terrific buy right now. But companies without a good game plan will likely see their stock prices fall as they fritter away their earnings.
The hardest part? Learning to separate the former from the latter. Here’s a list of the most profitable companies in America, along with our prediction of which direction the stock is heading.

The Most Profitable Companies To Invest In NO.17: Citigroup (NYSE: C) – $10.6 Billion

For many years, Citigroup (NYSE: C) was the most profitable banking firm in the United States. But a series of foolish moves allowed JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) to surpass them.

To get back to the head of the pack, Citigroup is repositioning itself as a key player in fast-growing emerging economies. Indeed, Citigroup now derives more than half its revenue from abroad.

Although the bank’s turnaround is not yet complete, the story should become a lot cleaner with each passing quarter, and eventually, investors should embrace the bank as a way to hedge against a falling dollar and as a way to have greater exposure to more dynamic economies elsewhere.

The Most Profitable Companies To Invest In NO.16: ConocoPhillips (NYSE: COP) – $11.4 Billion

Despite low profit margins, ConocoPhillips (NYSE: COP) has strengths in many areas: solid stock price performance, attractive valuation levels, robust revenue growth and compelling net income growth.

And if you think oil will continue to be expensive in the future, ConocoPhilips could be the ultimate value stock. The current dividend yield is 3.4% and management has a reputation for allocating capital to shareholders in the form of dividend increases and share buybacks — all good news for investors.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies To Invest In NO.15: Intel (Nasdaq: INTC) – $11.5 Billion

If you own a smartphone, you are an indirect customer of Intel (Nasdaq: INTC). Though they don’t manufacture or sell any smartphone components, Intel makes processors that help data center servers keep up with the demand, and the smartphone boom has been nothing but good for the company.

In addition to its profit-generating ability, Intel also has huge cash hoards. Using its cash to acquire fast-growing firms can be an effective way to boost its own growth, so look for Intel to get in on the market’s M&A activity in the coming months.
Photo courtesy of Flickr- Josh Bancroft.



The Most Profitable Companies Invest In NO.14: General Electric (NYSE: GE) – $11.6 Billion

It’s 2010 profit results are all well and good, but the historical numbers show that General Electric (NYSE: GE) has lost its way and needs a turnaround to return to the growth heyday it experienced while under the fearless leadership of Jack Welch.

GE Capital, GE’s massive finance arm, was a major profit driver under Welch, but it nearly ruined the company during the financial crisis. Back in 2007, GE Capital accounted for 55% of net income. That share fell to 13% in 2009.

Current CEO Jeffrey Immelt has a goal to limit GE Capital to no more than 40% of profits going forward, though it only recovered to 28% of profits in 2010, so it has some way to reach that level. GE will inevitably turn around its operations at some point, but there is no need for investors to wait for the company to find its way.
Photo courtesy of Flickr- Matt Millard.



The Most Profitable Companies Invest In NO.13: Coca-Cola (NYSE: KO) – $11.8 Billion

The world’s biggest soft drink maker, Coca-Cola (NYSE: KO), recently posted strong first quarter results, with a comparable net income of $6.4 million. With a powerful global distribution network, Coca-Cola products are currently sold in more than 200 countries and boast 500 different beverage brands. In the coming years, more than $20 billion will be spent to expand into emerging markets like Africa, Russia, Mexico and China.

Helping drive growth is the recent acquisition of Coca-Cola Enterprises, the company’s largest bottling unit in North America. It will now be cheaper for the company to produce and bottle smaller scale products — like the 100-calorie Coke can — to cater to calorie-conscious consumers.

Through the acquisition, Coke expects to improve business operations by better controlling product distribution so it can more quickly respond to changing market demand. As a result, Coke expects to save more than $350 million a year for the next four years. These savings should mean good news for shareholders.
Photo courtesy of Flickr: Kyle May.



The Most Profitable Companies Invest In NO.12: Wells Fargo (NYSE: WFC) – $12.4 Billion

One thing has been clear about Wells Fargo (NYSE: WFC): the San Francisco-based bank seems to have adroitly sidestepped a great deal of the potholes besetting the banking sector the past few years. It hasn’t been immune to the powerful forces of a down economy, but at least its management hasn’t been pilloried by the press (like Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS)), and it didn’t make life-threatening bad investments that led to government handouts (like Citigroup).

Restrictions put in place when the TARP program was in effect have limited the annual dividend, but banking analysts think the payout ratio will eventually rebound to 30%, implying a $1.08 dividend based on 2012 profit forecasts. As the economy improves, the dividend could move even higher, creating the impetus for a dividend yield above 4% when measured against today’s stock price.

And it certainly doesn’t hurt to have Warren Buffett as your co-investor. Buffett’s continued bullishness on the bank should be heartening to even the most bank-ophobic investors.
Photo courtesy of Flickr — Neubie.

The Most Profitable Companies Invest In NO.11: Procter & Gamble (NYSE: PG) – $12.7 Billion

After selling Pringles, Procter & Gamble (NYSE: PG) is officially out of the foods game. They are currently taking active steps to distance themselves from competition by expanding their health care brands into overseas markets, mainly in China and India.

P&G is also taking advantage of the rise in e-commerce popularity, recently entering the e-commerce market with an e-store. This new strategy has seen significant penetration in North America and Asia, where they are able to extend their reach into under-served, emerging markets.
Photo courtesy of Flickr – Brandon C.



The Most Profitable Companies Invest In NO.10: Berkshire Hathaway (NYSE: BRK) – $13.0 Billion

Warren Buffett has relayed numerous times that future growth rates at Berkshire Hathaway (NYSE: BRK-A) will fall below historical growth trends, but he still thinks there is potential for investors to earn above-average returns by investing in the stock. Just take the past two years as an example — book value grew 19.8% in 2009 and 13% in 2010.

This suggests Berkshire is still able to compound wealth at a double-digit rate going forward. And regardless of growth rates, the company is so well-managed that it’s difficult to imagine it even being unable to generate large profits for shareholders.

Last year, Berkshire hired money manager Todd Combs to help reshape the company’s $63.2 billion equity portfolio. Combs didn’t wait long to make his first big move, as Berkshire recently reported a stake in MasterCard, Inc. (NYSE: MA), valued at $54.4 million.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies Invest In NO.9: Johnson & Johnson (NYSE: JNJ) – $13.3 Billion

Johnson & Johnson (NYSE: JNJ) has increased its dividends for the past 48 straight years, at an average rate of about 13.4% per year since 2000. If you purchased 200 shares of JNJ in 1980 (an investment of $14,600) and never added new money but just reinvested all the dividends, the position would be worth $1.15 million today. That’s a 7,868% return.

In other words, it’s like buying a house in 1980 for $146,000 that today is worth about $11.5 million. Home values didn’t appreciate anywhere near that much. That’s the power of growing dividends.
Photo courtesy of Flickr – aldinegirl87.



The Most Profitable Companies Invest In NO.8: Apple (Nasdaq: AAPL) – $14.0 Billion

There is only one large U.S. corporation that can truly be called a growth stock: Apple (Nasdaq: AAPL). The company’s performance was impressive enough that net income rose from $8.2 billion in 2009 to $14 billion in 2010.

What’s more impressive is the road ahead. Merrill Lynch predicts Apple will earn $34 billion by 2013, putting it at a close second behind ExxonMobil for the claim of America’s most profitable company.
Photo courtesy of Flickr — Bacr Aptemob.



The Most Profitable Companies Invest In NO.7: Int’l Business Machines (NYSE: IBM) – $14.8 Billion

Int’l Business Machines (NYSE: IBM), affectionately referred to as Big Blue, is a titan in the technology industry. The company generated almost $100 billion in revenue last year and is about as diversified a technology company as can be found, spanning software, services, hardware and financing.

IBM’s presense abroad makes it fantastic play in a weak dollar environment — just over one-third of sales stem from the United States, with the rest being generated in Europe, Asia and the rest of the world.
Photo courtesy of Flickr — Patrick H~.



The Most Profitable Companies Invest In NO.6: Wal-Mart Stores Inc. (NYSE: WMT) – $16.4 Billion

Despite falling same-store sales in the U.S. for two consecutive years, Wal-Mart (NYSE: WMT) posted a profit in both 2010 and Q1 of 2011. Their average U.S. shopper spent more per visit in Q1 of 2011, and their U.S. same-store sales of groceries and health and wellness items has increased for two consecutive quarters.

Wal-Mart’s domestic foot traffic is down, but international sales are soaring. Their profits have come largely from an 11.5% increase in international sales, offsetting the impact of the domestic slump with strong gains in all countries except Japan.

Wal-Mart is a well-run company that has historically provided long-term value to its stockholders, so don’t be discouraged by the domestic sales slump, they are still turning profits.
Photo courtesy of Flickr — Walmart Stores.



The Most Profitable Companies Invest In NO.5: JPMorgan Chase (NYSE: JPM) – $17.4 Billion

The entire banking sector is still wheezing back to life, so the next few years could represent a return to traditional banking profit margins. Notably, analysts’ forecasts anticipate subdued lending activity in 2011 and 2012 and, more than likely, bank profits will be meaningfully higher again in 2013 and beyond, granted the economy is truly healthy (and the housing market gets out of the sickbed).

Therefore, the opportunity to buy shares of banks like JP Morgan Chase (NYSE: JPM) while they trade for less than 10 times 2012 profits looks quite appealing. Trouble is, some investors are convinced that we haven’t seen the end of the mortgage crisis. So buying these bank stocks today certainly carries some short-term risk that more funds will need to be set aside to cover future liabilities.
Photo courtesy of David R. Tribble.



The Most Profitable Companies Invest In NO.4: Microsoft (Nasdaq: MSFT) – $18.8 Billion

There are some who believe that Microsoft’s (Nasdaq: MSFT) best years are behind it and the company is riding into the sunset. While Microsoft is no longer synonomous with tech’s tomorrow (see Google, Facebook and Apple), there is no denying that company is still a cash cow.

Microsoft just announced its acquisition of Skype in a deal valued at $8.5 billion. Microsoft plans on intregrating its technology with the XBox console, Kinect device and its Windows Phone platform. This may be the deal that yields the strategic benefits Microsoft needs to stop following the leaders in the industry, and start leading again.
Photo courtesy of Flickr — Robert Scoble.



The Most Profitable Companies Invest In NO.3: Chevron (NYSE: CVX) – $19.0 Billion

Chevron (NYSE: CVK) is a top-five oil firm, given its vast reserves of oil and natural gas. Growth during the past decade has been stellar, as sales have improved 15.5% and earnings by 17.5% on average each year in the past decade. Growth is projected to continue apace, with the earnings consensus for this year at $12.12 a share, or nearly 30% above last year’s levels.

At the current price, Chevron offers the solid combination of a low earnings multiple, a decent dividend yield of 2.7% and strong projected growth. And nearly 60% of last year’s stales stemmed from overseas, giving the company exposure to faster-growing regions outside of the United States.
Photo courtesy of Flickr — Jonathan McIntosh.



The Most Profitable Companies Invest In NO.2: AT&T (NYSE: T) – $19.9 Billion

AT&T (NYSE: T) posted a $19.9 billion 2010 net income, and $1 billion of that money is being invested in the cloud computing business in 2011. This will help AT&T achieve tremendous efficiencies and flexibility in cloud-based environments in order to provide applications for any type of device.

AT&T also just acquired T-Mobile for $39 billion, which helps the company vastly expand its broadband network and possibly position itself as market leader in the U.S. wireless industry.
Photo courtesy of Flickr — Chris Young.



The Most Profitable Companies Invest In NO.1: Exxon Mobil (NYSE: XOM) – $30.5 Billion

There’s no debate over how Exxon Mobil (NYSE: XOM) will use its prodigious profits. The energy giant has spent eight years buying back stock, and there’s no indication that it will stop now. Exxon Mobil has bought back two billion shares since 2002, leading to a 29% reduction in its share count.

Assuming Exxon Mobil will once again focus on stock buybacks, the share count may drop from the current 4.8 billion to just four billion by the middle of 2013. For a company with $30 billion in annual income, the shrinking share count could mean record profits per share.