Wednesday, January 2, 2013

Stock Watch List 2013

After our research we have come up with some stocks worth looking at in 2013. We'll check back on these stocks at the end of the year and see how we did.

Apple - Apple might of had a rough end of year after hitting its high in September, but its still a stock to look at in 2013. Apple's products are very popular, and if they stay that way, the stock only stays the same, and so the rumor of an Apple TV might need to spark Apple to have a good gain next year. The fiscal cliff seems to have effected Apple in late 2012 and I go into detail about it in my blog post about "Whats the Deal With Apple?" I have researched Apple and gave it a C- short term and B long term. The first couple of months with this fiscal cliff mess and budget problems still isn't too much of a buy in the beginning of 2013, and if it effects consumers they're not going to buy Apple but instead cheaper products. Long term and throughout the entire year in 2013, Apple should be good to go and buy. Its a giant for a reason and although it might be stalling a bit, and the loss of the genius Steve Jobs, the Apple TV could be huge for Apple, make or break. If its good then Apple should be a golden buy. But if not their might be a downside to Apple.

Cisco - Cisco will have a huge year in 2013. At least it's expected to. Cisco is the old giant in communications and technology sector, along with Microsoft, Oracle, and Adobe. The difference that I like with Cisco is that it might be an old tech company, but it is also a veteran in a changing technology sector, and so it is definitely used to change. Its leadership is also dependable and smart. I love Cisco's leadership. It is also marketing its new cloud technology and is able to offer new and effective services to different companies for communications and other computer services. I would give it a B short term, A long term. The only reason why its a B short term is because of the mess that's going on in Washington. The only downside is that it is expected to do so well this year but if it fails to meet those expectations it may be a big downside.

Disney - Disney is a diverse entertainment company and is a classic. Through its theme parks, movies, stores, and more, it relies on the discretionary income of its customers. So, Disney really goes with the economy. If the economy picks up, more people spend, Disney gets customers. Disney also goes with its movies as well, and Star Wars may not be up their just yet, but it'll be in theaters in years to come. I would give it a C short term, and B+ long term. Short term the first quarter may not be the best for discretionary income spenders, and so Disney may not be a buy just yet, although its earnings should be positive in February and long term Disney looks to be in great shape. The economy should get going and Disney could be a big gainer in the year to come.

Citigroup - Citigroup and the rest of the bank sector got hurt the most in the recession back in 2008. And since then, they have been gradually coming back. Interest rates are still low, and people are still questioning whether the bank sector can really come back this year. I believe it will, the bank sector should have a big year in 2013, and Citigroup could be in the front running of that. Bank of America might of stole the show in 2012, but Citigroup is poised to make a run. It'll have a new CEO in 2013, and should be a positive factor for the company in the year to come. Some investors may look away from the stock but its EPS estimates look good in 2013. Citigroup would be a great stock to put an option on in 2013. Buying it for 42-46 dollar range in 2013 on an option wold be a great idea and a potentially great way to make money in the months to come. I would give it a C- short term and a A- long term. Short term may not be the best for the bank sector with certain fiscal cliff policies and letting it see how it plays out, although buying an option now for the long term should be a really good idea. I'd say that maybe after a couple of weeks watching it in the first quarter you might have a green light for the rest of the year.

3D Systems - 3D Systems is a small equity stock and many of investors may not of heard it. But I'll tell you why It has helped me out this year. It's up almost 300% in the year in 2012. A mind blowing number and was a true blow out stock in 2012. The most shocking news is, it still has its momentum. It is expected to keep growing in 2013. 3D printers could be the next big thing and it still hasn't made it to the surface yet of its potential. Of course the more people expect from it the more its expectations sore, and so if it does not meet those expectations the stock may not respond well. But with such momentum and continued growth what makes it stop growing? Investors may dismiss the stock based on some weak fundamentals but the growth of 3D printers is huge, and the growth of the stock is tremendous. I would give it a B short term and B long term. The reason why their the same is because the stock could continue its growth in 2013. But it really depends on its first quarter performance, with such high earnings it almost is bound to run out of steam, but the question is when?  Whenever it does the stock won't do well, but with 3D printers on the rise, it seems to be just getting started.

Hormel Foods Corp - Not very many investors looking into this stock but with the whole fiscal cliff drama and economy in question this stock could be a good one to watch. It truly depends on how the economy will go in 2013. Hormel Foods sells spam, meats, chickens, sausages, microwavable dinners, and other foods. It is a true economic resistant stock. And if you are a pessimist or think 2013 will be a year of economic this stock is for you. It has a 2.2% dividend yield, and good momentum. Its fundamentals don't look bad. Obviously if you're looking into the consumer staples, there is other stocks you might want to look at like Costco, Pantry, and Coca-Cola, as well as Hormel Foods, but this stock is good because if there really is some economic downturn this stock may bank from that. Although our ratings may surprise you; I would give it a C+ short term and a D+ long term. It really depends on how you think the economy can go, if it goes bad then this stock may capitalize on it, if the economy picks up (like we are predicting) then this stock is iffy. It has some good and some bad to it and because it has such momentum and is on its 52 week high you might just want to sit back on this one.

Ford Motors - Ford was a rising US automaker company until it was hit pretty hard from the 08 recession and is still not bouncing back as much as it is capable of. Automakers had a great year in 2012 and Americans bought a lot more cars, can they sustain and even build on more car sales this year? With a rising economy more people spend which can lead to people buying more cars, and with the available technology out there and affordability will help people buy even more cars in 2013, Ford should keep its momentum and with a hopeful economy maybe Ford can benefit. I would give Ford a C short term and B- long term. The reason why they're not higher is because its momentum might not continue, and just because it has recovered so much it might not continue or if it does it won't be too much.

Express Scripts - Express scripts is the largest US pharmacy benefits manager. And with Obamacare on the rise and  the economy picking up, medicare will benefit and so will Express Scripts. Especially with their big baby boomer customers that they have, and that will only increase. Express Scripts is expecting a big year and it should do even better. I would give it a A- short term and A long term. It will really be a big stock in Obama's administration.

Cliffs Natural Resources This might be the first company on an incredible low that I have mentioned and the metals and materials sector got drilled so then why even think of these companies? Well these types of companies will be on a verge in 2013 and they could be coming back in next year to come. Obviously they are in no condition to have a comeback any time soon but later on resources could have a nice future depending on where our economy is in late 2013. I would give it a D- short term C long term. It wouldn't be wise to invest in such a weak sector although because it is so cheap it might be worth looking at and maybe able to turn a profit in the future to come.

RPC Inc. - This energy equipment company and resources should be a big gainer in 2013. Many economists believe the US will be the next big oil company, and with continuing growth and momentum its just getting started. RPC should be a great company to get with the US continuing oil production. RPC and Alon USA Energy should be great companies to own in the long term with these types of American oil companies and an equipment supply company like RPC should be perfect to help both oil and gas in the US. Its fundamentals aren't bad and its earnings should surprise some investors. I would give it C short term and A- long term. Obviously the big US serge for oil and gas will not come over night and so short term this stock may not be the best to own at the moment but by the end of the year it should be a great stock.

Goldman Sachs - Goldman Sachs is the king of kings when it comes to financials. You have to mention this gigantic financial company when you think of investing and banks. And so with the finance sector expected to have a good run in 2013, Goldman Sachs will be in the front run of the financial sector and should be a good buy in 2013. It is a veteran in the financial sector and has a long history in its financial success and should be a good stock in the years to come. Of course it has been involved with controversy over the years it is still an old well run financial company that has been able to keep its grounds and will keep growing. Goldman Sachs has great fundamentals and good earnings, so it should have a good year in 2013. I would give Goldman Sachs a B short term and A- long term. Goldman Sachs and the financial sector need a big year and hopefully will get it. It is a resilient investing company and the only reason why I gave it an A- is because if the markets do have a bad year in 2013 Goldman Sachs has a small downside.

Gilead Sciences Inc - Gilead is a leading and popular biotech stock for biotech funds as well as some investors. Biotech stocks are good stocks to own in 2013 especially are stock of the week, Celgene with Obamacare and lets face it, everybody needs medicine and it should grow in the future to come. We like Gilead because of its earnings and a lot of mutual funds and ETFs own this stock so they also know a lot about this company. Gilead and other funds and stocks in the biotech sector could be potential big gainers in 2013. Although there is some biotech stocks that may not be so successful and in fact could go in the red next year if you don't choose your stocks wisely. I would give it a C- short term and B long term. The research on it may look promising and many funds might own it but its expected earnings are high and if it does not meet those earnings then the stock could falter.

American Water Works - American Water Works is a great stock to own in 2013. This dominant water utility will be able to work in now over 30 states and 2 Canadian provinces. After gobbling up some other water companies this one looks to be a good one. Its got a good cash flow, capital, and its diverse. It might have the good fundamentals. But I would give it a C- short term C long term. The reason why I wouldn't give it anything higher is because it might lose its momentum and how does the economy effect water companies as much as other sectors.

Macy's - Macy's is one of the most dominant retailers in the league. It is a classic and has been making its come back and reaching highs ever since the recession. I looked at Macy's when it was at 15$ and now its at 38$. It can still rise and should  be a good stock in 2013, although its earnings are expected to be very high and it may not be able to reach that after a holiday season that what not as well as expected. I would give it a C- short term and C+ long term because of that. Short term because of its earnings and long term because it is at its high.

Madison Square Garden Company - I'm going to the NBA to pick out my last stock to put on our watch list. When you think of the Madison Square Garden Company you probably think of the New York Knicks, or if your a big basketball fan (like I am) then you think of Carmelo Anthony. Well there's more to this company than you think. Madison Square Garden Company is a big media and entertainment company that is very organized in more than just sports. It has 3 big separate parts of the company its media section, entertainment section, and its sport section. And it does very well in all of those sections. It owns big theaters in Chicago and New York as well as Boston. The Obvious Madison Square Garden in New York City brings in massive amounts of money as well. And with the Knicks being hot in the NBA this year, and the economy picking up this could be a great stock in 2013. I would give the MSG a C+ short term and B- long term. Its a great stock and its earnings look good, its fundamentals are decent and it has been crushing the market in 2012, so it might not be able to continue its momentum.

These stocks should be good to research and take a look at and consider for 2013. Be sure to check out my other articles on the blog. Check out my Google + account  +Alleyway Investing and check out my Twitter @AlleywayInvest. Alleyway Investing's Twitter has other helpful tips as well. Twitter, Google +, and this blog is written and operated by a Minor. Not Responsible for Loses. Opinions by a Minor.








No comments:

Post a Comment