Many investors saw their portfolios recover in 2010 as the Dow climbed nearly 2,000 points from its July low and ended the year up 10%. Make 2011 even more lucrative. We talked to fund managers to get their pick of the hottest stocks for the new year.
There is strong growth ahead for this oil and natural gas company, according to McGervey Wealth Management President Mike McGervey. He says the company's long-term growth is expected come in around 48% thanks to growing energy demand.
McGervey Wealth Management President Mike McGervey expects 2011 to be a strong year for the tech titan forecasting continued earnings. Despite a growing number of competitors in the tablet market vying to be the 'iPad killer', McGervey says Apple "is just beginning to gain traction with the iPad and new Mac App Store."
McGervey Wealth Management President Mike McGervey also likes this payday lender citing its lack of debt and significant EPS growth.
Cabot Money Management President Rob Lutts recommends taking a closer look at Thoratec. He sees strong growth ahead for cardiac medical devices industry, saying, “there is a large population of patients with varying stages of heart failure and strong potential demand for their products.”
Low-cost carriers are doing well as consumers look to save money, and according to Cabot Money Management President Rob Lutts, AirAsia is the lowest cost airline in the world. With innovative management and pre-tax margins of near 30%, it's definitely a stock to investigate further, he says.
While health-care has been a hot topic in the U.S., it’s a growing sector globally as well. According to Cabot Money Management President Rob Lutts, “health care in China is on the verge of a major growth phase."
Cabot Money Management President Rob Lutts likes this supplier of infrastructure technology used for the Internet because it is “the leader and pioneer in this emerging, high-growth infrastructure segment.”
Investors should take advantage of the continued growth in the mobile industry this year, and look beyond darlings Apple and Research in Motion. According to Rob Lutts of Cabot Money Management, Motricity, which provides wireless-service carriers and Web mobile portals for telecom companies, has plenty of room to grow internationally, particularly in emerging markets.
Bob Phillips, managing partner of Spectrum Management Group, says most asset management companies are still working to recover from the overhang of the 2008 correction. Phillips says Prudential specifically, “has the ability to expand its return on equity' so it is definitely a financial company investors should look into.”
According to Spectrum Management Group Managing Partner Bob Phillips, the markets overreacted with its sharp selloff of the credit card company after the Fed’s proposed limit of debit card fees, which creates a buying opportunity for investors.
We talked to fund managers to get their picks for the top stocks in 2011.