Seven Stocks for Seven Years
Undervalued, these shares should deliver outstanding returns.
In Gene Marcial's new book, 7 Commandments of Stock Investing, the BusinessWeek "Inside Wall Street" columnist shares his unique perspective gained from over 30 years of stock-picking. Marcial offers a counterintuitive method of picking market winners and profiting from a long-term approach. Have a look at 7 stocks he says are worth buying and holding for the next 7 years.
Apple
(AAPL) Superior and sophisticated products are pushing the company ahead of rivals. Although the stock has been on the rise since May, climbing to 177 a share from $99 a share a year ago, the stock is still below its high of 199, reached on Dec. 28, 2007.
(AAPL) Superior and sophisticated products are pushing the company ahead of rivals. Although the stock has been on the rise since May, climbing to 177 a share from $99 a share a year ago, the stock is still below its high of 199, reached on Dec. 28, 2007.
Boeing
(BA) The formidable aerospace company isn't saddled with major financial problems. True it has bumped into some air pockets, which pulled down its stock to 72 a share on Mar. 12, 2008. But it has since powered higher, to 85, and going. It's likely it will surpass its 52-week high of 107 before yearend.
(BA) The formidable aerospace company isn't saddled with major financial problems. True it has bumped into some air pockets, which pulled down its stock to 72 a share on Mar. 12, 2008. But it has since powered higher, to 85, and going. It's likely it will surpass its 52-week high of 107 before yearend.
Cvs Caremark
(CVS) Despite a steady ascent, the stock of the largest U.S. pharmaceutical retail chain still trades at a modest valuation. It is trading at just 14 times its estimated 2009 earnings, below its 10-year P-E average of 22.4, and also below that of its peers.
(CVS) Despite a steady ascent, the stock of the largest U.S. pharmaceutical retail chain still trades at a modest valuation. It is trading at just 14 times its estimated 2009 earnings, below its 10-year P-E average of 22.4, and also below that of its peers.
Genentech
(DNA) At about 68 a share, the stock of the biotech behemoth is a bargain, trading close to its low of 66, hit on Jan. 7, 2008. It traded as high as 89 in mid-January of 2007.
(DNA) At about 68 a share, the stock of the biotech behemoth is a bargain, trading close to its low of 66, hit on Jan. 7, 2008. It traded as high as 89 in mid-January of 2007.
JP Morgan Chase
(JPM) This company has the financial muscle, energy, and will to achieve its lofty growth goals. Its stock could triple over the long term, if the growth trajectory of Jamie Dimon's management team is sustained. Wall Street continues to underestimate JP Morgan's earnings power.
(JPM) This company has the financial muscle, energy, and will to achieve its lofty growth goals. Its stock could triple over the long term, if the growth trajectory of Jamie Dimon's management team is sustained. Wall Street continues to underestimate JP Morgan's earnings power.
Petroleo Brasileiro
(PBR) Petrobras, one of the world's largest oil companies, continues to bulk up its reserves and other assets. Some of the major stakeholders in this Brazilian company are large U.S. institutional investors.
(PBR) Petrobras, one of the world's largest oil companies, continues to bulk up its reserves and other assets. Some of the major stakeholders in this Brazilian company are large U.S. institutional investors.
PFIZER
(PFE) Its robust pipeline of new drugs will rekindle the company's growth. Pfizer is also expected to do some acquisitions of biotechs that already have late-stage products in development. Its stock is one that's in the bargain bin, trading close to its low of 19.79. Any positive news, such as a significant acquisition or an activist investor taking a major stake in the stock could spark instant interest in this stock considered by many to be a ho-hum stock.
(PFE) Its robust pipeline of new drugs will rekindle the company's growth. Pfizer is also expected to do some acquisitions of biotechs that already have late-stage products in development. Its stock is one that's in the bargain bin, trading close to its low of 19.79. Any positive news, such as a significant acquisition or an activist investor taking a major stake in the stock could spark instant interest in this stock considered by many to be a ho-hum stock.
Starting tomorrow I will highlight each firm. (Tim)
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