2011 Best Stock to Buy for Making More Money Part1
TheStockAdvisors.com has turned to the nations most respected and well-known newsletter advisors and asked them for their single favorite stock or fund ideas for the coming 12 months. Here are top stocks to buy:
No.1 Altria: (NYSE: MO)
Altria Group is a holding company whose operating companies include Philip Morris USA, U.S. Smokeless Tobacco Company, John Middleton and Ste. Michelle Wine Estates. The company’s brand portfolio consists of successful and well-known brand names such as Marlboro, Copenhagen
"Trailing twelve months earnings for MO are $1.53 per share, and, based on the recent price of $19.15 per share, the P/E is in the mid-12 range. The cash dividend of $1.36 per share provides an outstanding dividend-yield of 7.10%."With a payout ratio of about 88% ($1.36 of the $1.58 ttm earnings are paid out in dividends), some investors who have seen some dividends slashed or eliminated over the past year may balk at such a high dividend-yield.
No.2-Amdocs (NYSE: DOX)
Amdocs keeps phone companies and their customers talking to each other in more than 60 countries around the world. "Its software helps telecom giants like AT&T Mobility and Sprint-Nextel with customer relationship management (CRM), billing, and sales.
In December 4, Standpoint Research raised their price target from $30 to $34. A number of other analysts think DOX can trade back to the $40's by 2011. In the New Year, I believe DOX has a good chance to break above $28 resistance and move toward $34. My target is $33.95."
No.3 Amedysis (AMED)
Amedisys is a provider of home health care and hospice services.
The growth opportunities in the home health care industry are obvious. The growing numbers of elderly, and the need for less expensive health care including home health care, will likely create industry growth of 15 to 20% during the next several years and decades. "Revenues climbed 39% and EPS soared 57% during the 12 months ended 9/30/09 . Analysts are forecasting 14% sales growth and 11% EPS growth for the next 12 months, but we believe Amedisys will produce sales and earnings growth exceeding 20%."We base our growth projections on the company’s aggressive acquisition program along with its ability to open new agencies effciently and profitably. AMED shares are clearly undervalued at 8.3 times our EPS estimate for the next 12-month period."
No.4: BCE (BCE)
BCE is a Canada-based telecom company. "BCE stock has risen 30% this year in loonies (C$s) and nearly 50% in US dollars. (It trades as BCE both in Toronto Canada
No.5: Blue Coat (BCSI)
This company provides us web security. The company is benefiting from an expansion of its products. In 2008, BCSI acquired Packeteer, a provider of WAN transfer prioritization technologies. It most recently came out with an expansion of its Webpulse cloud service for Arabic web content."Looking out to fiscal 2011 ending in April, the Street projects a 44% jump in net to $1.30 cents a share from the 90 cents anticipated for fiscal 2011.
"The top stock has been trending higher the past few months recovering from the bear market. The long-term chart for BCSI shows the stock with a cyclical tendency. It is now in the up trend part of its cycle. We see that as favorable for bulls at this time with the stock now trending higher.
"In our view, BCSI is an outstanding stock poised to breakout. It is holding in its base and poised to show massive earnings gains.We are targeting BCSI for a move to 36 after a breakout. A protective stop can be placed near 24 after a breakout."
