The market is changing and some companies are changing along, placing themselves in prime position to take advantage of opportunities coming into the next year. All five of these stocks have a good chance to have some great runs on share price. I analyzed both their fundamentals as well as their market hopes to gauge which profitable company looks to offer the best buy now for investors.
Sirius XM Radio Inc (SIRI, Financial) has a recent share price of just over $2 within a 52-week trading range of $1.27-$2.44 and a market capitalization of $8 billion. The company reports an earnings per share of $0.07 for a price to earnings ratio of 30.71 and a price to earnings growth ratio of 1.155. Sirius does not pay a dividend. Sirius looks to be doing where Netflix (NFLX, Financial) could not do - make a hefty price raise on its services while continuing to grow their subscriber base. With car sales rising that means earnings should drastically improve over the next 18 months and the stock price should head aggressively up, especially in the second half of 2012.
Return from near death Ford Motor Company (F, Financial) has a recent share price of $12 within it 52 week trading range of $9.05-$16.18 with a $46 billion market capitalization. It has an earnings per share of $5.01 over the trailing twelve months for a miniscule price to earnings ratio of just 2.50 and a price to earnings growth ratio of an attractive 0.515. Ford was the one US car company able to survive the auto implosion of 2008 without government aid. So while rival General Motors (GM, Financial) is still hamstrung by legacy liabilities from their government balout Ford is free to attack the market as they see fit, with new generations of low-fuel consumption cars. Perhaps most telling, this month the company re-established a dividend which pays a 1.62% yield off the current stock price. In fact earnings and dividends are expected to accelerate and with the current low stock valuation I expect big investor profits not only for 2012 but for the rest of the decade.
Meanwhile Freeport-McMoran Copper and Gold, Inc (FCX, Financial) has its recent price around $45 in its 52 week trading range of $28.85-$58.75 and has a market capitalization of $42 billion. The reported $4.77 earnings per share give it a 9.36 price earnings ratio and a dazzling price to earnings growth ratio of 0.422. It also pays a dividend of $1.00 for a yield of 2.36%. The market has been slow to return to Freeport after violent labor disputes in its Indonesia mines which caused a sharp fall in production. Everyone is friends again, production is accelerating to take advantage of high copper and gold prices, while the company is well situated to continue to benefit from solid growth in Asian markets like India and China. These low profits make Freeport a great buy, especially for investors who want exposure to the emerging Asian economies.
Independent oil producer Sandridge Energy (SD, Financial)has a share price just under $8 in its 52 week trading range of $4.55-$13.34. Sandridge is the smallest company in this screen with a market capitalization of $3 billion. Earnings per share are reported at $0.26 for a price to earnings ratio of 29.96 and in fact earnings have rocketed 112% in the trailing twelve months. As a growth stock Sandridge pays no dividends. The company has taken on debt and pumped its debt to equity ratio to a worrisome 96%. Management has used the money to fund an aggressive drilling program, adding more than 200 new wells in the West Texas Permian Basin and other areas. With Oil prices dancing around $100 I think their gamble makes a lot of sense and so long as the price of oil does not nosedive anytime soon Sandridge should see rapidly accelerating earnings beginning in the first quarter of 2012.
Our final company for this screen is silver miner Silver Wheaton Corp (SLW, Financial) which has a recent share price around $36 in its 52 week trading range of$25.84-$47.60 and a market capitalization of $12 billion. Its earnings per share is reported at $1.49 for a price to earnings ratio of 23.97. It pays an annualized dividend of $0.36 for a yield of 1.02% but that will ratchet up quickly. The company has a unique business model in that it leases resources then enters into management contracts with other companies to produce silver. It makes for an incredibly low investment/high cash flow/low risk model for the mining industry. In September 2011 the board of directors changed the company's dividend policy to a new formula which should triple the company dividend into the future. With Silver prices expected to continue to be strong Silver Wheaton stock should ride high at least through 2012.
While all five of these stocks are great buys right now I personally pick Ford as the best overall choice, based on its strengthening market base, low price and its re-imposition of its dividend. This is a buy and hold stock for a lot of years. However for those looking for the highest returns for 2012, I believe both Sandridge Resources and Freeport-McMoran offer outstanding upside through 2012.
Sirius XM Radio Inc (SIRI, Financial) has a recent share price of just over $2 within a 52-week trading range of $1.27-$2.44 and a market capitalization of $8 billion. The company reports an earnings per share of $0.07 for a price to earnings ratio of 30.71 and a price to earnings growth ratio of 1.155. Sirius does not pay a dividend. Sirius looks to be doing where Netflix (NFLX, Financial) could not do - make a hefty price raise on its services while continuing to grow their subscriber base. With car sales rising that means earnings should drastically improve over the next 18 months and the stock price should head aggressively up, especially in the second half of 2012.
Return from near death Ford Motor Company (F, Financial) has a recent share price of $12 within it 52 week trading range of $9.05-$16.18 with a $46 billion market capitalization. It has an earnings per share of $5.01 over the trailing twelve months for a miniscule price to earnings ratio of just 2.50 and a price to earnings growth ratio of an attractive 0.515. Ford was the one US car company able to survive the auto implosion of 2008 without government aid. So while rival General Motors (GM, Financial) is still hamstrung by legacy liabilities from their government balout Ford is free to attack the market as they see fit, with new generations of low-fuel consumption cars. Perhaps most telling, this month the company re-established a dividend which pays a 1.62% yield off the current stock price. In fact earnings and dividends are expected to accelerate and with the current low stock valuation I expect big investor profits not only for 2012 but for the rest of the decade.
Meanwhile Freeport-McMoran Copper and Gold, Inc (FCX, Financial) has its recent price around $45 in its 52 week trading range of $28.85-$58.75 and has a market capitalization of $42 billion. The reported $4.77 earnings per share give it a 9.36 price earnings ratio and a dazzling price to earnings growth ratio of 0.422. It also pays a dividend of $1.00 for a yield of 2.36%. The market has been slow to return to Freeport after violent labor disputes in its Indonesia mines which caused a sharp fall in production. Everyone is friends again, production is accelerating to take advantage of high copper and gold prices, while the company is well situated to continue to benefit from solid growth in Asian markets like India and China. These low profits make Freeport a great buy, especially for investors who want exposure to the emerging Asian economies.
Independent oil producer Sandridge Energy (SD, Financial)has a share price just under $8 in its 52 week trading range of $4.55-$13.34. Sandridge is the smallest company in this screen with a market capitalization of $3 billion. Earnings per share are reported at $0.26 for a price to earnings ratio of 29.96 and in fact earnings have rocketed 112% in the trailing twelve months. As a growth stock Sandridge pays no dividends. The company has taken on debt and pumped its debt to equity ratio to a worrisome 96%. Management has used the money to fund an aggressive drilling program, adding more than 200 new wells in the West Texas Permian Basin and other areas. With Oil prices dancing around $100 I think their gamble makes a lot of sense and so long as the price of oil does not nosedive anytime soon Sandridge should see rapidly accelerating earnings beginning in the first quarter of 2012.
Our final company for this screen is silver miner Silver Wheaton Corp (SLW, Financial) which has a recent share price around $36 in its 52 week trading range of$25.84-$47.60 and a market capitalization of $12 billion. Its earnings per share is reported at $1.49 for a price to earnings ratio of 23.97. It pays an annualized dividend of $0.36 for a yield of 1.02% but that will ratchet up quickly. The company has a unique business model in that it leases resources then enters into management contracts with other companies to produce silver. It makes for an incredibly low investment/high cash flow/low risk model for the mining industry. In September 2011 the board of directors changed the company's dividend policy to a new formula which should triple the company dividend into the future. With Silver prices expected to continue to be strong Silver Wheaton stock should ride high at least through 2012.
While all five of these stocks are great buys right now I personally pick Ford as the best overall choice, based on its strengthening market base, low price and its re-imposition of its dividend. This is a buy and hold stock for a lot of years. However for those looking for the highest returns for 2012, I believe both Sandridge Resources and Freeport-McMoran offer outstanding upside through 2012.
