CNBC recently compiled a list titled "20 Stocks With The Potential To Pop".
The criteria to select these stocks was detailed in an
article which said:
Analysts usually set price targets for where they believe a stock should trade sometime in the next 12 months. The 20 stocks on the CNBC list are expected to see gains of between 24% to about 37%. With most market indexes basically either flat to even slightly down, gains of 24% or more in 2012 would be exceptional. Here is a closer look at the top 7 stock picks of the 20 listed in terms of expected gains for the coming year:
Tesoro Corporation (TSO) is a leading refiner of petroleum products and also owns about 800 retail gas stations. Refining stocks have been under pressure in recent weeks due to concerns over margins. However, those concerns appear to be overblown and fundamentally this stock appears undervalued. Tesoro shares have a book value of $26.64 and trade at a price to earnings ratio of about 5. Any dips look like a great buying opportunity for long-term investors. The mean price target is about $30.54, which would provide gains of about 32%.
Here are some key points for TSO: Current share price: $23.58 The 52 week range is $17.43 to $29.61 Earnings estimates for 2011: $5.35 per share Earnings estimates for 2012: $3.97 per share Annual dividend: none
Wellpoint, Inc. (WLP) is a leading provider of health benefits plans and is based in Indiana. The company has about 33 million customers nationwide. Wellpoint shares look like a solid investment and currently trade close to the book value of $67.92. This company has an extremely strong balance sheet with about $20 billion in cash and about $10.7 billion in debt. This stock recently traded down to about $64, and any dips close to that level look like an attractive buying opportunity. The mean price target is about $87, which would provide gains of about 31%.
Here are some key points for WLP: Current share price: $68.05 The 52 week range is $56.55 to $81.92 Earnings estimates for 2011: $7.09 per share Earnings estimates for 2012: $7.75 per share Annual dividend: $1 per share which yields 1.6%
Cigna Corporation (CI) is a leading provider of health insurance plans, offering coverage for dental, medical, vision, disability and other needs. Cigna shares have a book value of $28.71 and trade at a very reasonable price to earnings ratio of about 8. Cigna shares were trading for about $52 per share before the market correction started in August. Any dips to about $41 are particulary good buying opportunities. The mean price target is about $56, which would provide gains of about 33%.
Here are some key points for CI: Current share price: $43.13 The 52 week range is $36.16 to $52.95 Earnings estimates for 2011: $5.27 per share Earnings estimates for 2012: $5.64 per share Annual dividend: 4 cents per share which yields .1%
Goodyear Tire (GT) is a leading maker of tires with brand names that include Goodyear, Dunlop and others. The company also operates about 1,500 auto service centers. The price to earnings ratio is only about 7. This makes the stock attractive on any dips, especially to about $13, or less. The mean price target is about $18.56, which would provide gains of about 34%.
Here are some key points for GT: Current share price: $14.31 The 52 week range is $8.53 to $18.83 Earnings estimates for 2011: $2.18 per share Earnings estimates for 2012: $2.48 per share Annual dividend: none
SLM Corporation (SLM) is a leading provider of student loans and loan servicing. The book value is $8.27 per share. In the past few months, SLM shares have been trading around $12 to $14 per share. With the shares at the high end of that range now, it makes sense to wait for a pullback. The mean price target is about $18.50, which would provide gains of about 37%.
Here are some key points for SLM: Current share price: $13.87 The 52 week range is $10.91 to $17.11 Earnings estimates for 2011: $1.81 per share Earnings estimates for 2012: $1.93 per share Annual dividend: about 40 cents per share which yields about 3%
Priceline.com, Inc. (PCLN) offers online travel reservations and offers for deals with hotels, airlines, car rental agencies and more. This company has seen strong growth and management has done an excellent job at positioning Priceline as a leader in the industry. In a tough economy, discount travel deals remain very popular. The mean price target is about $623, which would provide gains of about 32%.
Here are some key points for PCLN: Current share price: $481.73 The 52 week range is $399.18 to $561.88 Earnings estimates for 2011: $23.16 per share Earnings estimates for 2012: $30 per share Annual dividend: none
Teradata (TDC) is a leading provider of enterprise data solutions as well as consulting and support services. Teradata has a strong balance sheet and the company has been posting solid revenue growth. This stock was trading for about $60 just a few weeks ago, but has dropped to the low end of the recent trading range. This dip appears to be a good buying opportunity. The mean price target is about $62.73, which would provide gains of about 32%.
Here are some key points for TDC: Current share price: $48.97 The 52 week range is $41.07 to $62.71 Earnings estimates for 2011: $2.29 per share Earnings estimates for 2012: $2.60 per share Annual dividend: none
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
So far this year, the S&P 500 is down 1 percent, with only about half (238) of the index components outperforming the overall market. Among these companies, CNBC.com looked at the ones that are up over 2 percent year-to-date, which is greater than the yield of the 10-year US Treasury note, the risk-free rate. The stocks listed here have average consensus estimates farthest above their current stock prices. The prices and analyst estimates presented here are as of the market close on December 21, 2011.
Analysts usually set price targets for where they believe a stock should trade sometime in the next 12 months. The 20 stocks on the CNBC list are expected to see gains of between 24% to about 37%. With most market indexes basically either flat to even slightly down, gains of 24% or more in 2012 would be exceptional. Here is a closer look at the top 7 stock picks of the 20 listed in terms of expected gains for the coming year:
Tesoro Corporation (TSO) is a leading refiner of petroleum products and also owns about 800 retail gas stations. Refining stocks have been under pressure in recent weeks due to concerns over margins. However, those concerns appear to be overblown and fundamentally this stock appears undervalued. Tesoro shares have a book value of $26.64 and trade at a price to earnings ratio of about 5. Any dips look like a great buying opportunity for long-term investors. The mean price target is about $30.54, which would provide gains of about 32%.
Here are some key points for TSO: Current share price: $23.58 The 52 week range is $17.43 to $29.61 Earnings estimates for 2011: $5.35 per share Earnings estimates for 2012: $3.97 per share Annual dividend: none
Wellpoint, Inc. (WLP) is a leading provider of health benefits plans and is based in Indiana. The company has about 33 million customers nationwide. Wellpoint shares look like a solid investment and currently trade close to the book value of $67.92. This company has an extremely strong balance sheet with about $20 billion in cash and about $10.7 billion in debt. This stock recently traded down to about $64, and any dips close to that level look like an attractive buying opportunity. The mean price target is about $87, which would provide gains of about 31%.
Here are some key points for WLP: Current share price: $68.05 The 52 week range is $56.55 to $81.92 Earnings estimates for 2011: $7.09 per share Earnings estimates for 2012: $7.75 per share Annual dividend: $1 per share which yields 1.6%
Cigna Corporation (CI) is a leading provider of health insurance plans, offering coverage for dental, medical, vision, disability and other needs. Cigna shares have a book value of $28.71 and trade at a very reasonable price to earnings ratio of about 8. Cigna shares were trading for about $52 per share before the market correction started in August. Any dips to about $41 are particulary good buying opportunities. The mean price target is about $56, which would provide gains of about 33%.
Here are some key points for CI: Current share price: $43.13 The 52 week range is $36.16 to $52.95 Earnings estimates for 2011: $5.27 per share Earnings estimates for 2012: $5.64 per share Annual dividend: 4 cents per share which yields .1%
Goodyear Tire (GT) is a leading maker of tires with brand names that include Goodyear, Dunlop and others. The company also operates about 1,500 auto service centers. The price to earnings ratio is only about 7. This makes the stock attractive on any dips, especially to about $13, or less. The mean price target is about $18.56, which would provide gains of about 34%.
Here are some key points for GT: Current share price: $14.31 The 52 week range is $8.53 to $18.83 Earnings estimates for 2011: $2.18 per share Earnings estimates for 2012: $2.48 per share Annual dividend: none
SLM Corporation (SLM) is a leading provider of student loans and loan servicing. The book value is $8.27 per share. In the past few months, SLM shares have been trading around $12 to $14 per share. With the shares at the high end of that range now, it makes sense to wait for a pullback. The mean price target is about $18.50, which would provide gains of about 37%.
Here are some key points for SLM: Current share price: $13.87 The 52 week range is $10.91 to $17.11 Earnings estimates for 2011: $1.81 per share Earnings estimates for 2012: $1.93 per share Annual dividend: about 40 cents per share which yields about 3%
Priceline.com, Inc. (PCLN) offers online travel reservations and offers for deals with hotels, airlines, car rental agencies and more. This company has seen strong growth and management has done an excellent job at positioning Priceline as a leader in the industry. In a tough economy, discount travel deals remain very popular. The mean price target is about $623, which would provide gains of about 32%.
Here are some key points for PCLN: Current share price: $481.73 The 52 week range is $399.18 to $561.88 Earnings estimates for 2011: $23.16 per share Earnings estimates for 2012: $30 per share Annual dividend: none
Teradata (TDC) is a leading provider of enterprise data solutions as well as consulting and support services. Teradata has a strong balance sheet and the company has been posting solid revenue growth. This stock was trading for about $60 just a few weeks ago, but has dropped to the low end of the recent trading range. This dip appears to be a good buying opportunity. The mean price target is about $62.73, which would provide gains of about 32%.
Here are some key points for TDC: Current share price: $48.97 The 52 week range is $41.07 to $62.71 Earnings estimates for 2011: $2.29 per share Earnings estimates for 2012: $2.60 per share Annual dividend: none
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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