Showing posts with label top companies to invest in 2012. Show all posts
Showing posts with label top companies to invest in 2012. Show all posts

8 Best Consumer Stocks To Invest that Return Right Now

Consumer stocks are doing OK in 2012 as the broader market has rallied and spending has seemed strong. But the risk of rising gasoline prices, food inflation and other higher input costs could be squeezing margins for many consumer products companies. What’s more, you can bet that if gas hits $5 that many Americans will start cutting back on discretionary spending. That means some consumer stocks may be in trouble.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, eight consumer stocks look ready to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”
8 Best Consumer Stocks To Invest that Return Right Now Walgreen (NYSE:WAG) operates a drugstore chain in the United States. In the last year, WAG stock has dropped 20%, compared to a 3% gain by the Dow Jones in the same time. Walgreen stock gets a “D” grade for sales growth and a “D” grade for earnings momentum.
8 Best Consumer Stocks To Invest that Return Right Now Archer Daniels Midland (NYSE:ADM) works with agricultural commodities and products. Since last April, Archer Daniels stock has dipped 13%. ADM stock gets a “D” grade for operating margin growth, an “F” grade for earnings momentum, an “F” grade for earnings growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and an “F” grade for the magnitude in which earnings projections have increased over the past months.
8 Best Consumer Stocks To Invest that Return Right Now Avon (NYSE:AVP) manufactures and markets beauty and related products. In the last 12 months. Avon stock is down 19%. AVP stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, an “F” grade for earnings momentum, an “F” grade for earnings growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “F” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for cash flow.
8 Best Consumer Stocks To Invest that Return Right Now General Motors (NYSE:GM) is one of the largest American automotive company and has experienced a stock loss of 22% in the last year. GM stock gets a “D” grade for sales growth, an “F” grade for earnings momentum, and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street.
8 Best Consumer Stocks To Invest that Return Right Now Carnival (NYSE:CCL) is a major cruise company based in Miami. In the last year, CCL stock is down 17%. Carnival stock gets a “D” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for cash flow.
8 Best Consumer Stocks To Invest that Return Right Now Panasonic (NYSE:PC) offers diversified financial services to a variety of customers and has experienced a stock loss of 26% in the last year. C stock gets an “F” grade for sales growth, a “D” grade for earnings growth, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months.
8 Best Consumer Stocks To Invest that Return Right Now Sony (NYSE:SNE) is a major Japanese electronics company. SNE stock is down 38% since last April. Sony stock gets a “D” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings momentum, an “F” grade for earnings growth, an “F” grade for the magnitude in which earnings projections have increased over the past months, an “F” grade for cash flow, and an “F” grade for return on equity.
8 Best Consumer Stocks To Invest that Return Right Now Grupo Televisa (NYSE:TV) is a Mexican media company that rounds out the list. TV stock has dipped 11% since this time last year. TV stock gets an “F” grade for sales growth, a “D” grade for earnings growth, a “D” grade for earnings momentum and a “D” grade for cash flow.

Top 7 Energy Stocks to Buy Right Now

Energy stocks are doing well right now as crude oil continues to move higher. It’s not a great thing for motorists or American consumers to see gasoline or energy costs eating in to their budgets, but if you can’t beat ‘em … join ‘em! Buying energy stocks could be your best hedge against rising fuel costs.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I identify seven energy stocks to buy.
Here they are, in alphabetical order. Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”
Top 7 Energy Stocks to Buy Right Now China Petroleum & Chemical (NYSE:SNP) – commonly referred to as Sinopec — is an energy and chemical company that operates in China, as its name suggests. In the last year, SNP stock has gained 1%. Sinopec stock gets an “A” grade for cash flow, and a “B” grade for return on equity.
Top 7 Energy Stocks to Buy Right Now Ecopetrol (NYSE:EC) is involved with the exploration, production, refining, transportation, storage, distribution and selling of hydrocarbons. Ecopetrol stock has gained 54% in the last 12 months. EC stock gets a “B” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings momentum, an “A” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for return on equity.
Top 7 Energy Stocks to Buy Right Now Enbridge (NYSEL:ENB) transports and distributes energy across North America, and has watched its stock value jump 25% since this time last year. Enbridge stock gets an “A” grade for sales growth, a “B” grade for the magnitude in which earnings projections have increased over the past months, and a “B” grade for return on equity.

Top 7 Energy Stocks to Buy Right Now Enterprise Products Partners (NYSE:EPD) works with consumers of natural gas, natural gas liquids, crude oil, refined products and certain petrochemicals. Since last April, Enterprise stock has gained 15%, compared to smaller gain by the broader markets. EPD stock gets a “B” grade for sales growth, an “A” grade for operating margin growth, a “B” grade for earnings momentum, an “A” grade for earnings growth, an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “A” grade for the magnitude in which earnings projections have increased over the past months, and a “B” grade for return on equity.
Top 7 Energy Stocks to Buy Right Now Kinder Morgan Energy (NYSE:KMP) is involved with approximately 29,000 miles of pipelines and 180 pipeline terminals. KMP stock is up 10% in the last year. KMP stock gets a “B” grade for earnings growth, an “A” grade for earnings momentum, and a “B” grade for the magnitude in which earnings projections have increased over the past months.
Top 7 Energy Stocks to Buy Right Now Kinder Morgan (NYSE:KMI) owns 11% of the limited partner interests of the Kinder Morgan Energy Partners but is a wholly different stock. This is also a buy. In the last 12 months, KMI stock is up 31%. KMI stock gets an “A” grade for return on equity.
Top 7 Energy Stocks to Buy Right Now TransCanada (NYSE:TRP) works with natural gas pipelines, oil pipelines and energy. TransCanada rounds out the list with a 3% gain in the past year. TRP stock gets a “B” grade for operating margin growth, and a “B” grade for earnings growth.

Top 6 Stocks to Buy for May in 2012

Stocks have been rising since the bottom made in October 2011, and this year the Dow has gained 8.14%, the S&P 500 is up 12%, the Nasdaq is up 18.67%, and the Russell 2000 has gained just under 5%. In a market where second-half gains in earnings are in question and volume and breadth suggest that a consolidation is due, where can you find reasonably valued stocks?
Stocks in the building sector, especially apartment construction, should grow, and health care companies should benefit with or without “Obama Care.” And, despite the current administration’s resistance to fossil-fuel programs, the assumption is that the Keystone XL pipeline will eventually be built.
The bull market is still in its infancy, and the public has mostly been absent, put off by a “wall of worry” that appears to be growing, and that is a positive for stocks. Plus, the Fed will continue to pump money into the market.
This month’s stock picks are generally focused on stocks that will benefit from the economic engines that drive the market.
Here are your top stocks to buy for April:

Top Stock to Buy in 2012 #1 – AvalonBay Communities (AVB)

Real estate investment trust (REIT) AvalonBay Communities (NYSE:AVB) specializes in upscale apartment communities. An improving U.S. economy with high apartment occupancy levels should result in higher rental rates for AVB, and new development activities will be an important driver of earnings in 2012. Funds from operations (FFO) per share in 2012 is forecast at $5.30, up from $4.57 in 2011. AVB has a dividend yield of 2.83%, and it is expected to increase.
On March 30, the stock broke from a multiple top with a trading objective of $150. But longer-term investors should consider AVB as a cornerstone REIT with an objective of $175.

Top Stock to Buy in 2012 #2 – DENTSPLY International (XRAY)

DENTSPLY International (NASDAQ:XRAY), the world’s largest dental products maker, should benefit from demographic trends and a rising demand for dental services in underdeveloped nations. S&P forecasts earnings of $2.30 in 2012 and $2.60 in 2013.
The stock executed a golden cross early in February, and is very close to breaking out from a complex of tops at around $40. If successful, XRAY could run to $48. Buy now with a stop-loss at $37.50.

Top Stock to Buy in 2012 #3 – Ford Motor Co. (F)

Ford Motor Co. (NYSE:F), the second largest producer of cars and trucks in the United States, also has automobile financing and insurance operations. Analysts expect Ford to increase revenues this year chiefly from operations in the United States, China, and most European countries.
After some weakness in the first half of the year, improved profits are expected in the second half of 2012, and 2013 revenues are expected to rise 9.7%. Earnings this year should fall to $1.46, but rise to $1.71 in 2013. The first-half decline should already be factored into the price of the stock. And these estimates may be very conservative in that the average life of cars “on the street” is currently over 10 years. Increased consumer appreciation of Ford’s product quality and confidence in its management should also raise demand for the stock.
Technically Ford broke its bear market resistance line in January, jumping from $10 in December to $13 in late January. It has been consolidating since then between $12 and $13, but just flashed a buy signal from its stochastic. A break from $13 should result in a quick run to $14 to $15. Longer-term investors should benefit from much higher prices and an increase in its dividend yield, now at 1.62%.

Top Stock to Buy in 2012 #4 – Southwest Airlines (LUV)

Southwest Airlines (NYSE:LUV) is our “bottom fisher’s choice” for this month. The stock fell from over $14 in October 2010 to almost $7 in October 2011. But a turnaround appears to be occurring with the acquisition of AirTran, which resulted in an immediate 20% growth.
Earnings are estimated at 70 cents in 2012 versus 43 cents in 2011. The airline is known for the high quality of its management and enjoys an excellent reputation among customers.
Although technically still in a bear market, LUV has a solid base at $8 and recently flashed a buy signal from the stochastic and our internal indicator, the Collins-Bollinger Reversal (CBR). The trading target for LUV is $9 to $9.50, but long-term investors have an opportunity to buy this stock for a possible double or more.

Top Stock to Buy in 2012 #5 – TransCanada Corporation (TRP)

TransCanada Corporation (NYSE:TRP) is an energy infrastructure company that focuses mainly on natural gas and oil pipelines. It is the primary developer and manager of the Keystone pipeline system, and it is the company that manages non-regulated facilities in Alberta, Canada.
In January, the U.S. State Department rejected TRP’s application to build Keystone XL, an extension that would carry heavy crude from the Alberta oil sands and Bakken Shale to Gulf of Mexico refiners. Earnings for 2012 and 2013 are expected to be $2.35 and $2.70, respectively, but could be higher if the overall Keystone XL project is approved. President Obama has already approved the southern half of the line from Cushing, Okla., to the Gulf, saving months of delays. If the entire line were to be approved, the company’s earnings would improve significantly.
Technically the stock is in a bull channel with prices hugging the 50-day moving average. TRP’s overall price objective is $50-plus, depending on the political swings in the fall. Buy under $42.

Top Stock to Buy in 2012 #6 – United Health Group (UNH)

UnitedHealth Group (NYSE:UNH), a diversified health and well-being company, provides health care programs, retirement plans, has a life sciences group, and provides health plans to physicians, clinical services, etc.
Credit Suisse analysts say, “We continue to view United as the best-positioned large-cap managed care plan for where we see the best growth prospects… especially in the shift to Bundled Payments under Medicare.”
They look for earnings of $4.85 this year compared to $4.73 in 2011, and an increase to $5.60 in 2013. UNH has a dividend yield of 1.17%.
Technically the stock consolidated in a broad nine-month cup, then broke from that cup in February at $54. From mid-February until recently, it consolidated between $54 and $55. Last week, it broke from $56 to $58.10. The trading target for UNH is $65. Longer term, Credit Suisse is predicting an annual target of $72.