There are some picks in this sector that have excellent valuations and strong earnings growth.
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All are top picks for growth next year.
What are the best stock funds to hold in 2012? The following are four choices among Fidelity funds that we think are well-positioned for the upcoming year:
Fidelity Contrafund (FCNTX), Fidelity Low-Priced Stock (FLPSX), Fidelity Blue Chip Growth (FBGRX) and Fidelity Stock Selector Small Cap (FDSCX). They are listed in increasing order of risk.
With two large American companies being investigated for health emergencies in China, the business environment there could be worsening.
Investors may want to take note of a disturbing trend among Chinese officials, who lately seem more interested in blaming American parent companies for health emergencies. In September, Chinese authorities said American battery manufacturer Johnson Controls (JCI) was responsible for a number of lead poisoning cases in Shanghai.
Now they are investigating none other than Coca-Cola (KO) for selling milk products that allegedly caused the death of a young boy and sickened his mother in the city of Changchun, the capital of Jilin province.
The stocks of discount stores have seen incredible runs this year. For that reason, they may not be the best picks.
Net income at the Goodlettsville, Tenn., company rose to $171.2 million, or 50 cents a share, from $128.1 million, or 37 cents, a year earlier. Revenue rose more than 11% to $3.6 billion, fueled by increases in customer traffic and customer spending. The results beat Wall Street consensus forecasts of 47 cents on revenue of $3.57 billion.
The good news didn't stop there.
Two investment houses upgrade American Eagle, while Goldman downgrades Alcoa to 'neutral.'
- Time Warner Cable (TWC) upgraded to Outperform from Market Perform at Wells Fargo
- Willis Group (WSH) upgraded to Buy from Neutral at Citigroup
- Transocean (RIG) upgraded to Outperform from Market Perform at BMO Capital
- American Eagle (AEO) upgraded to Outperform from Market Perform at BMO Capital and to Equal Weight from Underweight at Morgan Stanley
- Nabors Industries (NBR) upgraded to Outperform from Market Perform at BMO Capital
- D.R. Horton (DHI) upgraded to Overweight from Equal Weight at Barclays
- TE Connectivity (TEL) upgraded to Buy from Neutral at Goldman
- International Game (IGT) upgraded to Buy from Neutral at Roth Capital
- eBay (EBAY) upgraded to Strong Buy from Market Perform at Raymond James
- Dunkin' Brands (DNKN) upgraded to Outperform from Market Perform at Raymond James
Double-bottom patterns on the charts for key metal producers could bring about good entry points for patient investors in 2012.
By Tom Aspray, MoneyShow.com
China's decision last week to lower bank reserve requirements suggests the emerging giant could cut rates in 2012. It is thought that such a rate cut would stop the slowdown in the Chinese economy and be positive for other emerging market economies as well.
The aluminum market has been hit hard by the weakness in the global economy, and prices have declined while supply seems to be increasing. As a result, the decision by Rio Tinto (RIO) to invest $2.7 billion in order to complete an aluminum mine in British Columbia suggests the company expects aluminum prices to be firmer when the plant is completed in 2014.
If you've got the nerves and the cash to play the game, there can be good money in selling short.
By Richard Band
Most of the time, I recommend stocks to buy and hold. I sell when stocks reach what appears to be their full gains potential or, less often, when the company fails to live up to my expectations. Occasionally, I'll also give out lists of stocks to avoid because of their subpar outlook.
At this point in the market cycle, though, I see another opportunity shaping up -- for aggressive investors only. If you've got the nerves and the financial resources to play the game, I believe there's good money to be made selling individual stocks short.
This stock meets the investing criteria of the Fidelity Magellan Fund's legendary manager.
We select stocks by using screens that are based on the investment strategies of well-known investors. Forest Laboratories (FRX) scores 100% on our Price-Earnings-Growth Investor screen, which is modeled on the investing criteria of Peter Lynch.
Forest Laboratories develops, manufactures and sells branded forms of ethical drug products, most of which require a physician's prescription.
The sector is getting a lift as Thailand comes back online, China gets ready to spend and Google leads the way.
The flood waters recede, and tech springs to life. That's what it looks like when we realize that the "seasonal" trade, the annual move up in tech stocks, was clearly stunted by all the capacity that was taken out by the flooding in Thailand.
Remarkably, now that the country is coming back online, we are seeing supply constraints that are allowing the drive makers to get some gross margins. At the same time, people are getting excited about a return to spending from China, a very big deal, one that makes for good chatter from Intel (INTC), SanDisk (SNDK) and, one of my favorites, Nvidia (NVDA).
The small player's growth and low valuation are too good to resist.
If the market keeps rising, it could push nervous portfolio managers back into stocks...but you don’t need to wait to make sensible buys into these specific assets.
By Tom Aspray, MoneyShow.com
In early September, I suggested that you “Fasten Your Seatbelts." That should have been my advice for the entire fourth quarter.
It was another incredible week for the stock market, as the grinding decline during Thanksgiving week discouraged many investors (but apparently not shoppers). From November 21 through November 25, the S&P 500 lost almost 57 points…only to gain 85 points this week.
Forget Friday's misleading drop in the unemployment rate. The evidence is building that global growth has stalled. And it's about to get much worse.
The market has been on crazy pills lately. Massive, bear market type volatility has even the most steel hearted market veterans feeling seasick from the undulations. Adding to the confusion has been some political and economic developments that -- while they make for nice headlines -- mask some serious underlying problems.
Take Friday's big drop in the unemployment rate to 8.6% from 9%, the lowest level since March 2009. The problem is, the number of actual new jobs added in November (120,000) came in under expectations. So the real reason for the drop was that a huge number of people (316,000 to be exact) left the workforce out of frustration and lack of opportunity. Not exactly good news. It was the same story with Wednesday's European "bailout" by the Federal Reserve -- which I discussed in my last post.
All of this distracts from an emerging truth: The global economy is rapidly falling into a new recession. And the U.S. stock market, despite this week's gains, is showing signs of tipping into a new long-term downtrend. Here's why.
The entertainment giant will raise its annual payout to 60 cents a share as major capital spending slows.
After the third-quarter earnings report, some think it has too much inventory instead of not enough.
By Evan Niu
Sometimes Mr. Market just expects too much. When it comes to lululemon athletica's (LULU) third-quarter earnings release and ensuing sell-off yesterday, jittery investors were clearly focusing on how the figures might not have met every heightened expectation while ignoring the ways the yoga-apparel retailer is breaking rules.
Not good enough, or is good not enough?
Expectations aside, as a shareholder I'm thoroughly pleased with the healthy growth figures that lululemon is putting up, as well as with the guidance indicating 33% to 35% growth over the next year. So why did the stock drop over 15% on the open yesterday? The consensus estimate was calling for more from the top line -- $235.7 million to be precise. Even though earnings came out on top, sales fell short of analysts' hopes. Next quarter's revenue guidance is also mostly higher than the estimate of $327.3 million.
The drilling contractor could achieve increased rig dayrates and utilization as deepwater oil exploration ramps up over the next few years.
The driller's potential liability for the devastating Macondo oil spill remains uncertain, with legal wrangles continuing in the U.S. courts. In early October, Standard & Poor's downgraded Transocean to BBB-minus, citing high debt levels, a weakening operating performance and excess capacity in the deep-sea drilling industry.
We do not believe that the bank's troubles, even when combined with the European debt situation, warrant the current market price.
The bank's stock has shed nearly two-thirds of its value since the beginning of the year. And while much of the decline is indeed justified, we do not believe that the bank's troubles -- even combined with the European debt situation -- warrant the $5.74 price the stock was trading at Friday afternoon.
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The stock rises 9% after the company reveals strong second-quarter results.
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