9/30/2011 6:03 PM ET|
50 stocks to buy in October
StockScouter, MSN Money's stock-picking tool, identifies companies capable of outperforming the broader market in the weeks ahead.
The markets just went through the most volatile three months since the depths of the 2008-09 financial crisis, and few market watchers foresee calm returning in the fourth quarter.
Eyes will remain trained on Europe to see whether the eurozone's problems drive the global economy into a recession. In addition, U.S. unemployment is stuck above 9% and Washington is paralyzed by partisanship.
Further, corporate earnings are unlikely to provide much clarity as long as the daily flow of economic news remains ambiguous.
Yet there are also potentially bullish factors. Among them: The 14.3% fall in the Standard & Poor's 500 Index ($INX)over the past three months has left stocks with valuations that some investors and analysts think make them a bargain -- or at least too cheap to sell.
For investors seeking reliable clues about what's likely to work in this market, StockScouter's Benchmark Portfolio for October is an ideal place to launch investment research.
The 50-stock portfolio was created using StockScouter, MSN Money's stock-picking tool. Each month, StockScouter generates a list of 50 stocks whose business fundamentals, price behavior, valuation and stock-ownership characteristics appear to predict a rising price in the coming weeks, based on how those factors have influenced stock prices in the past.
Here are StockScouter's best investment ideas for October:
|Benchmark Portfolio for October|
|Company||Sector||Sept. 30 close||Scouter score|
|Celgene (CELG, news)||Pharmaceuticals||$61.91||10|
|Dentsply International (XRAY, news)||Dentist supplies||$30.69||10|
|Mattel (MAT, news)||Toys, games||$25.89||10|
|Medtronic (MDT, news)||Medical devices||$33.24||10|
|Dollar Tree (DLTR, news)||Discount retail||$75.14||10|
|Resmed (RMD, news)||Medical equipment||$28.79||10|
|Fastenal (FAST, news)||Construction supplies||$33.28||10|
|Cerner (CERN, news)||Health care||$68.52||10|
|Endo Pharmaceuticals (ENDP, news)||Pharmaceuticals||$27.99||10|
|Alliance (AHGP, news)||Coal||$43.99||10|
|Volcano (VOLC, news)||Medical equipment||$29.63||9|
|Alliance Resource Partners (ARLP, news)||Coal||$65.56||10|
|Eli Lilly (LLY, news)||Pharmaceuticals||$36.97||9|
|Becton Dickenson (BDX, news)||Medical devices||$73.32||9|
|Allergan (AGN, news)||Health care||$82.38||9|
|Cabot Oil & Gas (COG, news)||Oil and natural gas||$61.91||9|
|Helmerich & Payne (HP, news)||Oil and natural gas||$40.60||9|
|Buckle (BKE, news)||Apparel, footwear||$38.46||9|
|Superior Energy Services (SPN, news)||Oilfield services||$26.24||9|
|New Oriental Education & Technology Group (EDU, news)||Private schools||$22.97||8|
|SM Energy (SM, news)||Oil and natural gas||$60.65||9|
|InterOil (IOC, news)||Oil refining and marketing||$48.77||9|
|Steris (STE, news)||Medical equipment||$29.27||10|
|DirecTV (DTV, news)||Satellite broadcasting||$42.27||10|
|Williams Partners (WPZ, news)||Specialty chemicals||$54.24||10|
|Shire (SHPGY, news)||Pharmaceuticals||$93.93||10|
|Dr. Reddy's Laboratories (RDY, news)||Pharmaceuticals||$29.80||10|
|MarkWest Energy Partners (MWE, news)||Oil and gas drilling||$45.95||10|
|Corrections Corp. of America (CXW, news)||Correctional facilities||$22.69||10|
|Smith & Nephew (SNN, news)||Medical devices||$44.69||10|
|Bristow Group (BRS, news)||Air taxi services||$42.43||10|
|Teva Pharmaceutical Industries (TEVA, news)||Generic drugs||$37.22||8|
|Jos. A. Bank Clothiers (JOSB, news)||Apparel retailing||$46.63||8|
|Tupperware Brands (TUP, news)||Containers||$53.74||9|
|Nu Skin Enterprises (NUS, news)||Personal care products||$40.52||8|
|Occidental Petroleum (OXY, news)||Oil and natural gas||$71.50||9|
|Wyndham Worldwide (WYN, news)||Hotels and resorts||$28.51||9|
|Herbalife (HLF, news)||Nutrition||$53.60||9|
|Intuitive Surgical (ISRG, news)||Surgical systems||$364.28||8|
|BioMarin Pharmaceutical (BMRN, news)||Pharmaceuticals||$31.87||9|
|Range Resources (RRC, news)||Oil and natural gas||$58.46||9|
|Diamond Foods (DMND, news)||Packaged foods||$79.80||7|
|EV Energy Partners (EVEP, news)||Oil and gas drilling||$71.68||9|
|Atwood Oceanics (ATW, news)||Offshore drilling||$34.36||9|
|QEP Resources (QEP, news)||Oil and gas drilling||$27.07||9|
|Western Gas Partners (WES, news)||Natural gas pipelines||$33.77||9|
|Tim Horton's (THI, news)||Restaurants||$46.28||9|
|H.J. Heinz (HNZ, news)||Foods||$50.48||9|
|General Mills (GIS, news)||Packaged foods||$38.49||9|
|Cimarex Energy (XEC, news)||Oil and natural gas||$55.70||8|
Investment research firm Gradient Analytics uses StockScouter to create daily and monthly stock lists. Writer Jon Markman, at the time a columnist for MSN Money, collaborated with the company to devise strategies for putting the tool to work.
One of Markman's strategies involved investing an equal amount of money in each of the stocks in the computer-generated portfolio, selling them six months later, then beginning the process again. For investors who prefer to handle fewer stocks, Markman recommended using the strategy with just the top 10 stocks on the list.
An investor who followed Markman's 10-stock strategy since it was launched in January 2001 would have realized a gain of 637% through Sept. 30 of this year, according to Gradient Analytics, and had an average annual return of 21.6%.
Over the same period, the S&P 500 lost 6.6%.
An innovative mix
StockScouter depends on advanced mathematics and software and an innovative mix of measurements and historical testing to forecast the short- and long-term outlook for all U.S. companies that have traded on the major exchanges for at least the past six months.
The analytical tools score stocks on fundamental, valuation, technical and ownership components.
This score is combined with each company's StockScouter rating to come up with the list in the above chart. Only stocks with a final closing price above $3 are eligible for the list.
VIDEO ON MSN MONEY
Buy low and sell high and you'll be rich. Then I'm told if you're reacting to the market you will end up loosing. I feel like a yo-yo I'm sure every body else feels the same way. I just don't want to wakeup one day to find I'll have to get a job saying would you like fries with that.
#1 on the list : NONE
#2 more of the number one
Lets just say I don't feel like giving any money to the ultra rich. Stock market is a shell game played in New York. Wish I could cash in what's in my 401k savings fund to buy some land with a spring on it.
The US economy will not recover untill we bring back manufacturing.How can are leaders not see that the RED CHINESE are ripping us off.We must make things here in the USA and Americans must BUY AMERICAN.We had 200 years of regulated(protections)trade and 30 years of free trade to ruin it and export 63,000 factories.Open your eyes America Obama says he is looking for jobs but he need to look in CHINA.We are in a economic war with the RED CHINESE CRIMINALS and they lie cheat and steal for jobs,we do nothing.We must cut the corporate tax to zero and industry will return to the USA. BUY AMERICAN and wealth will return to the USA,,,daaa
Richard Marsiglia says: "Buy low and sell high and you'll be rich"
Trouble is, Richard, some people are making it by Selling High and THEN Buying Low (shorting the market)... By betting on market failure they are encouraging it to happen. When a corporation's stocks are 'shorted' in this manner the price drops and the corporation then finds it difficult to finance its growth -- to raise money in bad times, or good. Sometimes these corporations have to lay off employees and even go into bankruptcy. The people who sell 'short' hurt our economy. They often make a lot of money but that money represents the health of our economy. They believe themselves to be acting in a very clever manner and -- so long as our government, and other governments, permit it -- no 'one can refute them. They come up the winners and we, the losers.
Charles, here's my pick for a under $5, MILL, I KNOW Miller will recover when they shake those parasite lawyers off their butts, they made a bad filing report but are making it right, they are an honest bunch trying to accomplish something big.
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Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
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