Top 10 Stocks till Third Quarter Earnings

Don’t be flattered by the unexpected spurt that markets witnessed starting September, as economic scenario is still is the mist and surely cannot change overnight. However, there were positive voices especially Bernanke’s but that one we have been hearing since long and we can say that he has consistently failed in making correct economic predictions, ever since the crisis started.

What’s cooking in Stock’s

Most likely, Bulls took charge of the positive news flow and traded the markets higher, but as the employment, consumer confidence and housing market still haven’t shown any clear signs to recovery, stock market moves may continue to shrug sentiment going forward. So, now investors should stick with value in large cap stocks or they should take cover in defensive plays and wait for third quarter results for a clearer market trend. Continue to read about solid large cap companies, which will continue to perform well, even in the current state of the economy. Some of the stocks listed below are trading heavily oversold under their fair value estimates and others are recession proof defensives that can provide maximum protection to investors looking for shelter.

1. Dell

Despite considerable fall in annual revenue growth along with hard hit bottom line, Dell continues to be an attractive play as it is witnessing strong growth in Asia/Pacific region. Quarterly growth for Dell was up-beat as it performed better than expected. Revenue estimations for this large global player stand at $66 billion in fiscal 2012.

2. Hewlett-Packard

A global competitor to Dell, Hewlett-Packard has a similar story. Annual revenue and bottom line were marginally downgraded and even the management is facing huge criticism, but the business growth in emerging markets continues to be mind-boggling, so this remains a buy at such beaten down levels.

3. Procter & Gamble

Annual profit numbers saw a slight dip whereas the revenues continued to remain flat. P&G’s stock is surely a defensive pick from consumer goods, currently trading around 10% lower to its yearly highs.

4. Bank of America

This one is surely trading in a different economy as annual numbers are simply impressive. What more can one ask for, a revenue growth from $27 billion to $72 billion, and bottom line from $4 billion to $6 billion. Despite such a staggering performance, the stock price is trading highly undervalued and thus its can be a good contrarian bet.

5. Analog Devices

This large cap chip-maker is currently trading at much lower valuations compared to its past. Moreover, being a market leader with around 80% market share in a growing industry, this company surely has growth potential.

6. Johnson & Johnson

This Company reported flat annual revenues with a dip in net income. This is a good defensive stock from consumer goods with an attractive dividend yield of around 3.6%.

7. Kraft

With dividend yield at 4%, this is the same company that recently acquired Cadbury, so growth pick-up can be expected. Also, it is trading at attractive valuations and seems to be a fairy good defensive as it deals in food products. Annual revenues have contracted but net income still grew for this one.

8. Verizon Communications

Year over year revenue growth was good for Verizon but its bottom line reduced significantly. However, this company remains a buy in current situation as first, its trading cheap and then consumer reliance on communication industry will continue to support.

9. Pfizer

A gem from the healthcare sector, Pfizer’s dividend yield stands tall at 6% and they have solid products in their pipeline. Also, healthcare stocks are considered best defensives amid uncertainty.

10. Intel

Everyone knows it’s a great stock to hold for long term, but its on the list for the very reason that its trading way too cheap around 20% below its 52 week highs.

Recommended Reading-

http://www.comparebroker.com/investing_basics_learn_how_to_invest.php

http://www.brighthub.com/money/investing/articles/83406.aspx