Five Stocks to Track


From car manufacturers to banks and technology leaders, are they still an opportunity in todays surging markets?


By: YOSEF TASTASSA  
Published: April 3rd 2011
in Economics » World

Will the market keep surging?

Optimism is back

 

Friday's closure figures were very impressive. The Dow-Jones and the NASDAQ are at recent highs of 12,376.72 and 2,789.60 points respectively. The TSX Composite Index is at 14,130.15 points, and to some investors the 2008 crisis feels like it was centuries ago.

 

The markets are very sophisticated and already got used to the unstable Middle East and to the impact the recent events in Japan had over the global economy.

 

Should this climb be sustainable, then there are many companies and sectors in the markets that are about to surge amid the continuous growth of the world economy.

 

Let's have a quick look at some publicly traded companies and their pros and cons. Stock

 

No. 1 – "Toyota" Motor Corporation

 

NYSE symbol – TM Trading

 

Range in 52 weeks - $67.56 - $93.90

 

Last trading - $80.51

 

One year target price - $99

 

Optional upside from current price: 23 per cent

 

Why buy "Toyota" – The improvement in the world economy during the last quarter of 2010 puts Toyota in a position in which high growth is expected. The reliable and relatively affordable car has high potential in Asia’s growing markets. It is only a question of time until this huge corporation will be back on track despite the natural disasters in Japan. Therefore, the recent plunge in Toyota's shares is an opportunity.

 

Why not buy "Toyota" – The Company is based in Japan, and due to the devastating events, it was reported that the markets should expect a shortage of 600,000 cars in February alone. Other manufacturers outside of Japan will fill the gap which could make it hard for Toyota to gain back its portion in the world vehicle market.

 

Stock No. 2 – "General Motors" Company

 

NYSE symbol – GM

 

Trading Range in 52 weeks - $30.20- $39.48

 

Last trading - $32.41

 

One year target price: $42.50

 

Optional upside from current price: 31.1 per cent

 

Why buy "GM" – The Company has come back from the dead and is adamant that it will not repeat past mistakes. The slowdown in the Japanese motor industry and the strong positive signs of sustainable growth in the US may support GM and increase its sales. Both reasons will be a "back wind" to GM shares.

 

Why not buy "GM" – It is too soon to determine whether GM is back on track. Another year is needed before we can pronounce GM as a truly reformed company. Until that happens, high fluctuations are expected.

 

Stock No. 3 – Bank of America

 

NYSE symbol – BAC

 

Trading Range in 52 weeks - $10.91 - $19.86

 

Last trading - $13.37

 

One year target price - $18.3

 

Optional upside from current price: 36.9 per cent

 

Why buy "BAC" – America is back to the right track. All macro data such as the labor market, the consumers' sentiment and the economy pace of growth are doing well for the financial system. The more reliable your clients are, the more profitable you are. Bank of America is at the right place and at the right time.

 

Why not buy "BAC" – Don't forget Barr Sterns, Lehman Brothers and other financial giants who no longer exist. The US financial system is far from stable. The real estate sector is still suffering badly in many parts of the country. Even Bank of America has to prove that it is no longer holding dangerous assets and that the credit the bank is giving is secured.

 

Stock No. 4 – Google

 

NASDAQ symbol – GOOG

 

Trading Range in 52 weeks - $433.63 - $642.96

 

Last trading - $591.80

 

One year target price - $724

 

Optional upside from current price: 22.3 per cent

 

Why buy "GOOG" – This is the decade of the information giants. Google is a fantastic success and it will keep growing in a rapid pace. The shares soared from $100 in 2005 to nearly $600 in five years – sky is the limit.

 

Related articles: (GM, Bank of America, Google, Toyota, TSX, Stocks, )




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