Join        Login             Stock Quote

Top Stocks 2013: CVS & Yahoo

 December 27, 2012 11:14 AM

by Chuck Carlson, editor DRIP Investor

My top conservative pick for 2013 is drugstore operator CVS Caremark (CVS). For more aggressive investors, my pick is Yahoo! (YHOO).

In many ways, CVS is in a nice sweet spot. The drugstore and pharmacy benefits manager is not dependent on overseas business and thus is shielded by problems in Europe.

Also, the firm should benefit from more people being brought into the health-care system as a result of Obamacare. Profit and revenue growth in 2013 should outpace that of most corporations. And I look for excellent dividend growth in 2013 and beyond.

[Related -Express Scripts Holding Company (ESRX): Should You Own ESRX in 2014?]

The stock is reasonably priced relative to its growth potential and represents a solid play for capital gains, income, and especially dividend growth.

CVS offers a direct-purchase plan whereby any investor may buy the first share and every share of stock directly from the company. Minimum initial investment is just $100.

Yahoo is certainly an aggressive pick. But there's a lot to like here:

  • New management (a top executive from Google is now leading the charge).
  • A cash-heavy balance sheet (the equivalent of around $8 per share)
  • Operating momentum (the firm has beaten earnings estimates in each of the last three quarters)
  • Solid stock price action.
  • A kicker in its equity stake in Alibaba.
I look for these shares to continue their upside momentum in 2013 and would feel comfortable buying at current prices.

[Related -Yahoo! Inc. (NASDAQ:YHOO): What Will Drive Future Revenue For Yahoo!?]

Yahoo offers a direct-purchase plan whereby any investor may buy the first share and every share directly from the company. Minimum initial investment is $250.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageTwo Picks to Play Defense in a Slowing Economy

Is the economy slowing? Last Thursday the Institute for Supply Management (ISM) reported that its read on...

article imageUS Jobless Claims Fall, Moving Closer To Multi-Decade Low… Again

US jobless claims continue to cast a positive glow on the outlook for the labor market. Today’s weekly read on...

article imageLong-term Relationships and Credit Scores

Unlike many commentators, I tend to think credit scores are a good read on...

article imageIn Defense Of Rolling Return Charts

Robeco’s Lukas Daalder has a bit of an issue with rolling-performance graphics. Bashing a recent chart of read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.