January’s Most Attractive Stocks are now available.
Technology and Pharmaceutical stocks predominate compared to other sectors. One newcomer to the list, Seagate Technology (STX), is actually an old friend. STX made our subscribers a lot of money when the stock jumped on acquisition speculation last fall. After that jump, the stock was too expensive to remain on the list and it dropped off the list and down in price for a few months before returning this month. We continue to like Microsoft (MSFT), which performed very well while on our list. On the small cap side, we like Emerson Radio (MSN) and Cubic Corporation (CUB).
All of these stocks get our “very attractive” rating, which means they have high quality economic earnings and their valuations are cheap. For example, the current stock prices of STX and MSN imply those companies profits will decline permanently by 70% or more. The low expectations in the stock prices of these stocks provide investors attractive downside protection and upside potential.
Note that we offer free company valuation reports for 4 of the companies included in our Most Attractive Stocks newsletters.
Here is a quick overview for the January reports.
- 9 new stocks make our January lists.
- The Most Attractive Stocks portfolio (+6.8%) outperformed the S&P 500 (+4.1%) last month.
- Most Attractive Stocks have high and rising returns on capital (ROIC) and low market expectations for future profits.
Barron’s recently recognized our Most Attractive Stocks portfolio as #1 over the prior 12 months among the best of the Wall Street research firms.