What are some good stock investments?

Question

I'm doing a project in my class, and I'm wondering what are some good short term stock investments? We are doing it over a 6 week period and we have to "invest agressively". What are some good fast growing companies? Thanks in advance

Answer 1

I did a quick little stock screen for you and made it easy.

First, the Standard & Poors rating people, of the famous S&P500 list, have ratings within that set of companies. There are 105 with the highest ratings, as in most anticipated, among that solid set of companies, to best increase in stock value.

Second, the news agency Reuters has a hand in ranking stocks. They figure some 1,673 of the companies they evaluate are most likely to "outperform" the market.

Third, I searched for companies that were above industry averages for return on equity.

Finally, I got sixteen companies that matched all three: ANR, AEO, ARRS, EMC, FRO, ICLR, JEC, MTW, WFR, MSFT, ORCL, SGP, SLB, STX, SNDA, and SPN.

Next, I sorted them in order of biggest price change in the last 4 weeks and got this order:
ANR, JEC, SNDA, MTW, ICLR, SLB, ORCL, FRO, EMC, WFR, SGP, STX, AEO, MSFT, SPN, and ARRS. Sorting them in order of the biggest price change in the last 5 days, this is the order:
FRO, JEC, EMC, ORCL, MTW, WFR, SLB, STX, SGP, ICLR, SNDA, SPN, ANR, MSFT, AEO, and ARRS.

Arris group was a solid loser in stock price. While it may be ready to go up (or it may be ready for the ranking companies to reevaluate), for the moment you can drop it from consideration. The market, at this moment, seems most interested in JEC, MTW, ORCL, and SLB. Look at them and see what you are comfortable with. You will probably need to map out some reasons for your class report, so this will help you avoid over 9,000 companies that might distract you needlessly. But remember, "past results are not an indication of the future", so there are no guarantees, as I'm sure you realize. Good luck.

Answer 2

Tell your teacher that there are different definitions of "aggressive" - - - - it doesn't require small-cap growth. And small-cap growth is not where to be at this stage of the cycle, unless it's your 401-K and you're buying $40/week of small-cap growth FUNDS on the way down.

It can mean aggressive in your assumptions. For example I would assume further interest rate cuts over the next six months and assume that the market starts to price those in a month from now - and buy MLPs. I like GLP (because it's way down for no good reason), BPL (because the GP has to share windfalls with the LP unitholders per a set formula), and EPD and PAA (because I see an increase in propane volume especially in KY, TN).

But you need to balance this with good stocks that perform well in ANY environment. There ARE stocks that just keep going up at a sustainable pace, because they are the leaders in their sectors and they generate strong cash flows!

VOD - expanding market share in emerging markets where the local, presently fast-growing company (e.g., TKC which I sold last week) cannot compete on cost or service. Also nice 5% yield...

HSIC - owns the dental supply market, and is expanding not only internationally but also into vet offices. Very conservative accounting too!

DCI - whoever wins the elections, environmental regs particularly emissions regs will increase.

FMD - whoever wins the elections, we have to figure out a way to make college affordable for almost everyone - that won't be a handout, there's not enough $ for that - it will be govt guarantees and rate protection. Also there's a lot of $ chasing debt right now, with an aging population that will increase, and there won't be as many mortgage-backed bonds. All FMD does is structure and securitize - they don't hold the debt - so there's no direct exposure to interest rate risk, they just get a fee for their services. All the experts are saying buy FMD now, and this time they're right.

Note, because the consumer is stretched thin - not as thin as the media portrays but not flush either - I would not necessarily go with the usual recessionary stocks like P&G.

You might throw gold out there - it will definitely go to $800. That's already priced into most mining stocks though.

Good luck!

Answer 3

There is no answer to your question, as timing is everything in the world of investing. What is popular today, is out tomorrow. At the moment due to the banking mini-crisis, and housing fallout, look at consumer staples such as Proctor & Gamble, or Johnson & Johnson, companies that even if recession looms, wil still make $$$$$.

Answer 4

Very small cap, if not penny stocks, commodities are good now...also check out LULU