The Wall Street releases a list every year to guide investors to invest in companies which have the highest possibilities of turning your investments into more valuable assets. For this it sets up a panel of expert strategists who give their take on the market. This list is a quick guidance for the companies you should invest in.
And hence, this year’s Wall Street list is as follows –
List of the Names of Strategists on the Panel
• Richard Bernstein – CEO and Chief Investment Officer, Richard Bernstein Advisors
• Dan Chung – CEO and Chief Investment Officer, Fred Alger Management (Alger Funds)
• Bob Doll – Chief Equity Strategist, Blackrock
• Tom Lee – Chief U.S. Equity Strategist, JPMorgan Chase
• Ann Miletti – Senior portfolio manager, core equity, Wells Fargo Advantage Funds
• Kate Warne – Chief investment strategist, Edward Jones
These were the five strategists on the panel and below are their investment themes for the year 2012:
1. USA Assets are good investments even during bad economic times.
2. U.S. Treasury bonds yield low yet they offer diversification. Mainly because they remain as a sole major asset class and the direction of their prices move opposite to where stocks and most assets move.
3. Small U.S Stocks can be invested in as if you buy small caps, more so of financials and industrials, who avoid trouble from abroad by benefitting from the U.S economy, you will have a good chance.
4. Dividend paying stocks are not original and this defensive play is expensive. But given the investor’s risk aversion, they can get more expensive.
5. Avoiding credit sensitive plays is for your own good. There is a good chance of underperformance from investments that borrow and leverage. Examples are housing, commodities, emerging markets, hedge funds and big banks.
6. Apple – (APPL) Computers is a good investment as the Late Steve Jobs innovation firm is going to come up with iPad 3 and iPhone 5 this year, both of them will garner immense number of sales.
7. Lowes – (LOW) is a home improvement retailer that is most likely to benefit from even the slightest of improvements in a fallen housing market.
8. OpenTable – (OPEN) has a possibility of 25% growth rate along with consumer following. It is a possible target for takeover.
9. Qualcomm – (QCOM) the leading chipmaker is in a position from which it can profit from the upcoming next generation faster and higher speed wireless mobile networks.
10. Life Technologies – (LFTC) provides life sciences products and equipment and is globally well known. It had a 30% stock drop, a 52-week high, but it is most likely to profit from a growing health care system.
11. UnitedHealth – (UNH) is the largest HMO in the USA. It is growing exponentially with a massive number of 70 million customers.
12. Dell – (DELL) has in its offering a good risk/reward tendency even though the number of challengers in the PC business has increased. Its stock is cheap and expectations are low. There could be a rise in the shares if it can bring together two good earning quarters back to back.
13. HollyFrontier – (HFC) It has cheap refinery and more unloved when compared to most of its rivals. Its refiner spreads have narrowed but its margins are better and that makes it good in the long run.
14. Philip Morris – (PM) has a strong pricing power, free cash flow, a 4% yield adding to dividend growth. Buybacks of shares is a plus.
15. Raytheon – (RTN) is a big time defense contractor. Its defense budget has less exposure to big ticket items and its revenue is more recurring than competitors.
16. The level of mortgage and vacancies are on a 20 year high when affordability vs. renting is taken into consideration. This has not been seen since the years 2006 and 2008. If there is a pick up in the housing section, anything related to it like consumer discretionary names and finances will prosper along with it.
17. Comcast – (CMCSK) is a cable provider which provides media and high speed data and it is likely to pick up growth there is a rise in the housing market.
18. ON Semiconductor – (ONNN) is being sold at around 50% of its value in the private market. This is because of its losses due to the Tsunami Japan and Thailand floods.
19. Hertz – (HTZ) is a rental car company. It has a strong brand name and it is banking from the higher rental volumes when compared with air travel. It has a potential in the market because of its longer term rentals.
20. PepsiCo – (PEP) has a 3.2% dividend yield and a quite reasonable valuation in the market.
21. Johnson & Johnson – (JNJ) is diverse when looking at its geography and product popularity. It is likely to profit from consumer, pharmaceutical and medical businesses.
22. Intel – (INTC) is moving into the stream of mobile phone space. It has a dividend yield of a good 3.6%. It has a below market P-E ratio of 10.
23. Grand Canyon Education – (LOPE) is a for-profit online educator. It has a campus in Arizona and its management is strong and this is garnering more credibility and students.
Thus, The Wall Street list for investing money in 2012 has been mentioned above. While these companies may provide opportunity for your ROI, Wall Street is always surprised at the end of the year by how much potential they have over-looked. For instance, milk was the top commodity for 2011.
Hope this helps you earn higher ROI from your investments!