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Sunday 22 January 2012

5 Stocks That Could Outperform In 2012

From seeking Alpha  Web site

First of all, I would like to celebrate everyone's New Year. Let it bring us luck, happiness, and health. As the New Year comes, Apple (AAPL), Visa (V), and United Parcel Services (UPS) reported their record sales in recent years. I think these companies will keep doing great in 2012. I added two other stocks that, I believe, will do just fine in 2012. I have analyzed all of them from a fundamental perspective, and added my O-Metrix Grading System, where possible. Here is an analysis of five stocks ready to outperform..............................

United Parcel Service
UPS is the last Santa stock in my list. The world's largest package delivery company shows a trailing P/E ratio of 17.8, and a lower forward P/E ratio of 15.2. Analysts expect the company to have an 11.2% annual EPS growth in the next five years. It sports a 2.84% dividend, and the profit margin is 7.9%, higher than the industry average of 5.6%.
With a Beta value of 0.83, United Parcel is the third-least volatile stock in its industry. Revenue and cash flow seems all right. There is great competition in this industry, but United Parcel is one of the best players. Both P/E ratio and earnings per share [ttm] have come to very good levels. Return-on equity is 50.6%, more than doubling the industry average of 21.8%. Although the company recently broke through the $73.66 resistance level, it couldn't stay much above that number. Dividend history is appetizing, and United Parcel offers safe returns with an acceptable dividend. Buy this name as soon as it goes below $70 a share, United Parcel has an O-Metrix score of 4.25.

I could think of a reason why it might go below $70

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