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Monday, December 12, 2011

Top 10 Best stock picks for 2012

 top 10 stock picks for 2012


From Apple (AAPL 0.00%) to Caterpillar (CAT 0.00%), the picks rely on stable income stocks that Fortune says are undervalued. "Times are uncertain," the magazine says. "Stocks are moving in lockstep. Reliability and income matter more than ever."

When stocks move in lockstep, it's very difficult to pick ones that can rise above the rest of the action. Did Fortune make the right choices? Let's go through the picks:



1. Apple. Too easy. It's hard to find someone who isn't bullish on Apple these days, particularly after the stock's price-to-earnings ratio has fallen to around 10.

Add to that the company's dominance in the tablet market, its Black Friday performance, its mountain of cash and its sky-high potential in China next year, and there isn't much to criticize. Analysts think 2012 earnings per share will rise 30%, Fortune reports.

2. Caterpillar. Again, China is coming into play here as part of a host of emerging markets needing mining and machinery equipment. CEO Douglas Oberhelman has set his sights on 15% to 20% growth rates through 2015, Fortune reports. And that $29 billion in back orders is nothing to sneeze at.

3. Enbridge Energy Partners (EEP 0.00%). The company is the U.S. branch of Canada's Enbridge, a pipeline company, and is organized as a master limited partnership. Enbridge Energy has a 7% yield, says Fortune, and payouts have risen by 5% a year on average since 1992.

4. Goodyear Tire (GT 0.00%). This one seems a little iffy to me. Goodyear has been up and down all year, and is now coming up from a low of under $10 in October. Fortune acknowledges that demand for tires is cyclical, and you have to time this stock just right. On the plus side, auto sales are starting to get hot again as people replace their aging vehicles.

While Goodyear can rely on replacement-tire business, the economy is too fragile to make a big bet on autos. There's a reason Goodyear Tire is only trading at five times projected earnings.

5. Halliburton (HAL 0.00%). Fortune rightly points out that Halliburton is a good way in to the growing shale gas and oil industry in North America. The oilfield services company is a leader in some of the techniques used in shale gas production, which the U.S. government expects will triple by 2035.

6. Intel (INTC 0.00%). Another iffy one. Fortune says Intel's free cash flow next year should generate dividends and buybacks. But there's no guarantee. Our own Jim Jubak recently pointed out that PC growth is slowing in a stumbling economy and a shift from PCs and laptops to tablets and smartphones.

Intel's price-to-earnings ratio is cheap, Jubak notes, "but with developed economies showing strong signs of slowing, I think the risk in these shares outweighs the reward at this share price."

7. Johnson Controls (JCI 0.00%). I've seen more enthusiasm for Johnson Controls lately than just about any other stock. Fortune points to the company's three prongs of growth: Auto parts, heating and air conditioning systems, and a new battery for "micro-hybrid" cars in Europe and soon in the U.S.

But note that the stock is on a huge decline from over $40 this summer to around $31.53 Thursday. Time to buy? You can read more about Johnson Controls here.

8. Lockheed Martin (LMT 0.00%). A big hang over this stock is the expected cut to the U.S. defense budget. We know it's coming, the question is how much. But Fortune doesn't think the cuts will be that bad in an election year. And the company has a $73 billion order backlog plus expected earnings growth of 2% next year and 10% in 2013.

9. Microsoft (MSFT 0.00%). The price of this stock has gone nowhere for years. Why does Fortune think 2012 will be any different? The magazine thinks the real story here is the dividend payout, not the stock price. With double-digit earnings growth, $57 billion in cash and significant short-term investments, the dividend is poised to increase further. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

10. Royal Bank of Canada (RY 0.00%). A bank stock? Are you serious? Canada's economy has fared better than that of the U.S., with a 2.4% gross domestic product growth rate. The stock has a 5.1% yield, and earnings rose 13% last quarter, Fortune reports.





Bonus Top Stocks for 2012:

1 AAME Atlantic American Corp 10 1.99 Out of favor Neutral Neutral B A B C
2 AMP Ameriprise Financial Inc 10 47.10 Neutral Neutral Neutral C A A B
3 APL Atlas Pipeline Partners LP 10 35.25 Neutral Neutral Neutral A A A C
4 AUY Yamana Gold Inc 10 16.07 Neutral Neutral Neutral C A A C
5 BMTC Bryn Mawr Bank Corp 10 19.11 Neutral Neutral Neutral A C A C
6 CACC Credit Acceptance Corp 10 91.18 Neutral Neutral Neutral B A A C
7 CFNL Cardinal Financial Corp 10 10.96 Neutral Neutral Neutral A B B B
8 CHSP Chesapeake Lodging Trust 10 15.68 Neutral Neutral Neutral B A C
9 CMG Chipotle Mexican Grill Inc 10 338.60 Neutral Neutral Neutral A A A C
10 CXO Concho Resources Inc 10 100.58 Neutral Neutral Neutral A B B C
11 DOV Dover Corp 10 57.20 Neutral Neutral Neutral B A B B
12 EIG Employers Holdings Inc 10 17.84 Neutral Neutral Neutral A C B A
13 EZPW Ezcorp Inc 10 29.18 Neutral Neutral Neutral A A C C
14 HBI Hanesbrands Inc 10 23.50 Neutral Neutral Neutral A B B C
15 IMO Imperial Oil Ltd 10 43.44 Neutral Neutral Neutral B A B C
16 KLAC KLA-Tencor Corp 10 49.00 Neutral Out of favor Neutral B A B C
17 MKTAY Makita ADR Reptg 1 Ord Shs 10 34.52 Neutral Neutral Neutral B A B C
18 MRO Marathon Oil Corp 10 28.33 Neutral Neutral Neutral A B B C
19 NEU NewMarket Corp 10 199.71 Neutral Neutral Neutral A A B C
20 NUS Nu Skin Enterprises Inc 10 49.21 Neutral Neutral Neutral B A A C
21 PEB Pebblebrook Hotel Trust 10 18.90 Neutral Neutral Neutral A A B C
22 PLD Prologis Inc 10 28.70 Neutral Neutral Neutral A B B C
23 PLL Pall Corp 10 56.66 Neutral Neutral Neutral B A B C
24 QLGC Qlogic Corp 10 15.27 Neutral Out of favor Neutral B A B A
25 RAND Rand Capital Corp 10 2.98 Out of favor Neutral Neutral B A
26 REX Rex American Resources Corp 10 21.24 Neutral Neutral Neutral A C A C
27 RS Reliance Steel and Aluminum Co 10 49.27 Neutral Neutral Neutral B B A C
28 RTIX Rti Biologics Inc 10 4.67 Neutral Neutral Neutral A B A C
29 SNDK SanDisk Corp 10 50.39 Neutral Out of favor Neutral B A B C
30 SPSC SPS Commerce Inc 10 24.98 Neutral Out of favor Neutral A A A C
31 TASR TASER International Inc 10 6.33 Neutral Out of favor Neutral B A A C
32 UTHR United Therapeutics Corp 10 42.02 Neutral Neutral Neutral A A C A
33 WASH Washington Trust Bancorp Inc 10 23.71 Neutral Neutral Neutral A A C B
34 WAT Waters Corp 10 74.82 Neutral Neutral Neutral A A B C
35 ANSS Ansys Inc 10 61.98 Neutral Out of favor Neutral A A B C
36 ASR Grupo Aeroportuario ADR Reptg 10 Ord Shs Series B 10 56.63 Neutral Out of favor Neutral B A B C
37 CA CA Inc 10 21.41 Neutral Out of favor Neutral A A C C
38 COR CoreSite Realty Corp 10 17.57 Neutral Neutral Neutral A B A C
39 CUBE CubeSmart Ord Shs 10 10.18 Neutral Neutral Neutral A A
40 DE Deere and Co 10 78.34 Neutral Neutral Neutral B A B C
41 DFS Discover Financial Services 10 24.74 Neutral Neutral Neutral B A B C
42 HANS Hansen Natural Corp 10 97.14 Neutral Neutral Neutral A A B C
43 LGCY Legacy Reserves LP 10 27.04 Neutral Neutral Neutral A A C
44 NDN 99 Cents Only Stores 10 21.88 Neutral Neutral Neutral A A C C
45 NVO Novo-Nordisk ADR repsg 1 B Ord Shs 10 114.22 Neutral Neutral Neutral C A A C
46 RBCAA Republic Bancorp Inc 10 22.57 Neutral Neutral Neutral A B B C
47 SBNY Signature Bank 10 59.10 Neutral Neutral Neutral A A A C
48 SFNC Simmons First National Corp 10 27.25 Neutral Neutral Neutral A C A C
49 SNA SNAP On Inc 10 51.41 Neutral Out of favor Neutral A A C C
50 TCAP Triangle Capital Corp 10 18.93 Neutral Neutral Neutral B C A A


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