All Entries Tagged With: "5 Safe Stock Picks in 2010"

Top 5 Safe Stock Bets in 2010

Here are 5 safe stock picks for 2010 and five reasons to own them.

Goldman Sachs (GS) Current Price: $168.80 12-month target: $250

1. Pickup in M&A and IPO activity will launch the rest of Goldman’s business ventures
2. Lower compensation expenses due to protests.
3. Goldman’s fixed-income, currencies, and commodities business should soar.
4. Healthy balance sheet and advantage over its peers due to its premium brand name.
5. Goldman is a very attractive opportunity right now and it is undervalued compared to what it should be pegged at.

Read the full stock report on Goldman Sachs.

PetroBras (PBR) Current Price: $47.68 12-month target: $80

1. PBR plans to invest $174 billion by 2013 to support the largest oil discovery in 30 years.
2. PetroBras has both the backing of the Brazilian government who invested over $30 billion and the Chinese private investors who have pledged over $20 billion to PBR’s discovery.
3. Brazils government proposed to make PBR the only operator of all new offshore pre-salt oil fields yet to be exploited.
4. PetroBras expects oil production to increased from 2.4 million barrels a day to around 5.7 million barrels a day by 2020.
5. PBR has long-term views and have been expanding renewable energy programs such as solar, biofuel, and energy. Biofuel production is expected to increase 18% by 2013.

Read the full stock report on PetroBras.

Under Armour (UA) Current Price: $27.27 12-month target: $37

1. I see potential in opportunities for new product adjacencies, and expanding distribution worldwide.
2. Footwear growth will continue to increase. Revenues for these products have increased over 69% in 2009.
3. Adding to this I still see growth in Under Armour’s apparel sales, which are up 8%.
4. Under Armor had yet to even break into the international market, which offers a plethora of new opportunities for this growing brand.
5. I believe sales will rise drastically in 2010 driven by international sales, new women’s clothing line, and expansion within their own footwear line.

Read the full stock report on Under Armour.

Fluor (FLR) Current Price: $45.04 12-month target: $65

1. Large growth opportunities with huge worldwide infrastructure expansions in China, Brazil, U.S., etc.
2. I expect demand to increase in 2010 backed by more oil and gas projects, government spending worldwide on construction projects.
3. FLR has over $31 billion in future project backlogs adding value if the economic crisis were to continue longer than expected.
4. FLR has a strong balance sheet with a solid ROA, strong profit margins, and little debt.
5. I think PE ratios and earnings estimates will improve in the New Year. In 2009, earnings dropped due to the large amount of cancellations as a result of the credit crunch. With banks getting healthy and more willing to lend we can expect for infrastructure projects to start up again.

Read the full stock report on Fluor.

The Buckle (BKE) Current Price: $29.28 12-month target: $42

1. I like BKE due to their strong brand management and overall sales appeal
2. Per store sales have gone up from $1.32 million to $2.19 million in the last 7 years, a net growth rate of 66%.
3. Long-term growth prospects are bullish heading into 2010 as I expect sales double-digit sales for a third consecutive year followed by strong earnings estimates.
4. Currently they have $3 a share in cash, zero debt, and a current ratio of 3.70.
5. Moving on they have a PEG of 0.98, which is a bullish indicator. Adding to this they have strong ROE and ROA of 31% and 23%. Plus Buckle insiders hold 43% of the company showing they have believe in its long-term growth potential.

Read the full stock report on The Buckle.