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.
Top 6 Stocks to Buy for February in 2012
With business inventories low, manufacturing up in December, an
increase in housing starts in November, consumer confidence up, and the
unemployment rate falling, the economy appears to be slowly improving.
But global issues and especially problems in the EU still plague the
market.
January started on a positive note with the Dow up over 3%, thus the familiar saying, “As goes the first week of the new year, so goes the month and so goes the year,” was frequently repeated. But on Jan. 26, the Dow and the S&P 500 executed “daily reversals,” and since then prices have been falling. All of our internal and sentiment indicators are overbought, and so the market could end the month on a negative yet still have delivered one of the most impressive bullish performances in years.
It is important for investors to focus on high-quality stocks that pay dividends and/or have a history of regular dividend increases. Some also have stock buyback programs in place to use part of their cash and reduce the number of shares trading. Both strategies should have a positive long-term impact on the companies’ stocks.
Here are your top stocks to buy for February:
Earnings are estimated at $4.94 in 2011 and $5.58 in 2012. The dividend yield is 1.21%. This stock is rated a “five-star strong buy” by S&P with a 12-month target of $80.
S&P has CVX rated a “five-star strong buy” with a target of $132. The consensus estimated earnings for 2011 are $14.02 and $13.65 for 2012. The annual dividend is $3.24, providing a yield of 3.12%. The company is expected to continue to increase dividends and is executing a share buyback program.
Top Stock to Buy #3 – H.J. Heinz Co. (HNZ)
H.J. Heinz Co. (NYSE:HNZ), a producer of a wide variety of food products, has a new, more aggressive corporate strategy. Acquisitions in “emerging markets” began two years ago, and in 2011 that new direction accounted for 16% of total sales. Earnings for FY 2011 were $3.06 and are estimated to be $3.30 in FY 2012. HNZ has a dividend yield of 3.71% and a history of increasing dividends. The fundamental target for HNZ is $60.
Technically the stock has double-bottomed at $48 and formed a neckline of resistance at $54.50. A recent buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), tells us to buy now for a breakout and run to $62.
Credit Suisse analysts consider UNH to be the best-positioned company in its field and 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 1.27%.
Technically the stock has consolidated in a broad cup. A break through $54 should produce a trading target of $62.
Top Stock to Buy #5 – Verizon Communications (VZ)
Verizon Communications’ (NYSE:VZ) earnings are expected to grow to $2.50 next year, up from $2.23 in 2011, and strong operating margins and network quality are expected to attract customers to its 3G and 4G networks.
The communications sector has been one of the strongest in the closing months of 2011, and VZ has been a leader of the group. But the sector, and Verizon, may have run too far too fast. An increase in sellers and a short-term sell signal from its stochastic warn that a correction is likely.
Buy VZ on a pullback under $38 for a longer-term advance to the mid-$40s.
Top Stock to Buy #6 – Whole Foods Market (WFM)
Whole Foods Market (NASDAQ:WFM), the operator of the largest chain of natural food supermarkets in theUnited States, appears headed to new highs. Sales are expected to increase by 15% in 2012, and earnings are estimated to increase to $2.27 from $1.93 in 2011 and $1.43 in 2010. The adoption of a new price strategy, more lower-priced offerings, and an expansion plan are expected to lead to better-than-average industry growth. The dividend will likely be increased from the current 56 cents per share, and the repurchase of shares is expected.
Technically WFM has been in a powerful bull channel for over a year, and while there is no reason to expect a change, the stock is currently in a correction and will most likely hold at the lower support line of the channel at the 50-day moving average at $70 where it should be bought. The target for a trade is $80 by the end of March. Longer-term buyers should expect continued growth and higher prices.
January started on a positive note with the Dow up over 3%, thus the familiar saying, “As goes the first week of the new year, so goes the month and so goes the year,” was frequently repeated. But on Jan. 26, the Dow and the S&P 500 executed “daily reversals,” and since then prices have been falling. All of our internal and sentiment indicators are overbought, and so the market could end the month on a negative yet still have delivered one of the most impressive bullish performances in years.
It is important for investors to focus on high-quality stocks that pay dividends and/or have a history of regular dividend increases. Some also have stock buyback programs in place to use part of their cash and reduce the number of shares trading. Both strategies should have a positive long-term impact on the companies’ stocks.
Here are your top stocks to buy for February:
Top Stock to Buy #1 – Barrick Gold Corp. (ABX)
Barrick Gold Corp. (NYSE:ABX), an acquirer, explorer and developer of gold, copper, silver and zinc, is charted using monthly rather than daily data. This long-term chart clearly shows a bullish cup-and-handle formation. But for the stock to break out it must close above $55. If ABX breaks $55, look for a major rally to $75 to $80.Earnings are estimated at $4.94 in 2011 and $5.58 in 2012. The dividend yield is 1.21%. This stock is rated a “five-star strong buy” by S&P with a 12-month target of $80.
Top Stock to Buy #2 – Chevron Corp. (CVX)
Chevron Corp. (NYSE:CVX) primarily engages in exploration, refining, transportation and storage of crude oil and natural gas. The stock has formed a neckline at $110 after establishing a double-bottom. The overall pattern is an inverse head-and-shoulders — a very bullish development. All that is required to trigger a strong buy is for the stock to close above the neckline. This is a huge bullish formation with a technical target of $132.S&P has CVX rated a “five-star strong buy” with a target of $132. The consensus estimated earnings for 2011 are $14.02 and $13.65 for 2012. The annual dividend is $3.24, providing a yield of 3.12%. The company is expected to continue to increase dividends and is executing a share buyback program.
Top Stock to Buy #3 – H.J. Heinz Co. (HNZ)
H.J. Heinz Co. (NYSE:HNZ), a producer of a wide variety of food products, has a new, more aggressive corporate strategy. Acquisitions in “emerging markets” began two years ago, and in 2011 that new direction accounted for 16% of total sales. Earnings for FY 2011 were $3.06 and are estimated to be $3.30 in FY 2012. HNZ has a dividend yield of 3.71% and a history of increasing dividends. The fundamental target for HNZ is $60.
Technically the stock has double-bottomed at $48 and formed a neckline of resistance at $54.50. A recent buy signal from our proprietary indicator, the Collins-Bollinger Reversal (CBR), tells us to buy now for a breakout and run to $62.
Top Stock to Buy #4 – United Health Group (UNH)
The diversified United Health Group (NYSE:UNH) provides health care programs and retirement plans, has a life sciences group, and provides health plans to physicians, clinical services, etc.Credit Suisse analysts consider UNH to be the best-positioned company in its field and 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 1.27%.
Technically the stock has consolidated in a broad cup. A break through $54 should produce a trading target of $62.
Top Stock to Buy #5 – Verizon Communications (VZ)
Verizon Communications’ (NYSE:VZ) earnings are expected to grow to $2.50 next year, up from $2.23 in 2011, and strong operating margins and network quality are expected to attract customers to its 3G and 4G networks.
The communications sector has been one of the strongest in the closing months of 2011, and VZ has been a leader of the group. But the sector, and Verizon, may have run too far too fast. An increase in sellers and a short-term sell signal from its stochastic warn that a correction is likely.
Buy VZ on a pullback under $38 for a longer-term advance to the mid-$40s.
Top Stock to Buy #6 – Whole Foods Market (WFM)
Whole Foods Market (NASDAQ:WFM), the operator of the largest chain of natural food supermarkets in theUnited States, appears headed to new highs. Sales are expected to increase by 15% in 2012, and earnings are estimated to increase to $2.27 from $1.93 in 2011 and $1.43 in 2010. The adoption of a new price strategy, more lower-priced offerings, and an expansion plan are expected to lead to better-than-average industry growth. The dividend will likely be increased from the current 56 cents per share, and the repurchase of shares is expected.
Technically WFM has been in a powerful bull channel for over a year, and while there is no reason to expect a change, the stock is currently in a correction and will most likely hold at the lower support line of the channel at the 50-day moving average at $70 where it should be bought. The target for a trade is $80 by the end of March. Longer-term buyers should expect continued growth and higher prices.
Subscribe to:
Posts (Atom)