April Stocks Bring May Profits
March presented a challenge to investors with a sharp sell-off
followed by a "V" shaped bottom mid-month. The leading indices have
successfully neutralized their near-term decline, but volatility is
high and volume low, indicating a possible lack of commitment on
the part of major institutions. Uncertainty with the financial
crises in Europe and unrest in North Africa and the Middle East
still dominate headlines.
Short-term indicators are now bullish, but as of this writing,
they have not yet broken the tops made in February. If the indices
break to new highs, the following
could lead the way higher, and each of these top stocks should be
an excellent long-term performer.
Here are your top stocks to buy for April:
Top Stock #1 - Caterpillar (CAT)
), the world's largest construction company, is known for the
manufacturing of construction and mining equipment, diesel and
natural gas engines, and industrial gas turbines. The stock has
been in a bull market since the market bottomed in March 2009. CAT
was on our
Top 6 Stocks for December
list, when I said, "The advance from its bear market low at $22 has
been very orderly - defined by its ability to stay above its
200-day moving average and its bullish support line."
CAT could be a major beneficiary of orders from Japan due to the
damage from the earthquakes and tsunami. S&P had a target of
$95, which matched our technical target, but they have raised their
sights to $121. The stock's recent break from a
confirms that target.
Top Stock #2 - Coeur d'Alene Mines (CDE)
Coeur d'Alene Mines Corporation
) engages in the operation, ownership, exploration and development
of silver and gold properties in South America, Mexico, the United
States and Australia.
Ford Equity Research has a "buy" on CDE projecting that it will
outperform the market over the next six to 12 months. EPS has
increased from a 60-cent loss to $1.17 over the past five
Technically, CDE broke from a saucer with a double-top in
October and a triple-top on Feb. 28. It broke to a new high at $36,
and then pulled back to its near-term trendline at $30 before
rebounding again to $36. CDE could again pull back to $30 to $32,
which is our buy point. The trading target for CDE is $38, but
longer term CDE could go higher.
Top Stock #3 - Ford Motor Co. (F)
On Oct. 22, with
Ford Motor Co.
) at $12.86,
, "Yesterday, the stock broke from the right triangle following two
buy signals from our internal Collins-Bollinger Reversal (CBR)
indicator and a new stochastic buy. This breakout reinforces our
target for Ford of $16 by year-end."
Ford exceeded our target by jumping to $16.83, and then to
$18.97 in January. But a combination of profit-taking and a market
pullback drove Ford's shares back to the 200-day moving average at
around $14. All of our internal indicators favor new purchases of
the stock, and on March 15, our CBR indicator flashed a buy
S&P rates the stock a "four-star buy" and estimates that the
company should earn $2.09 for 2011 versus $1.66 last year. S&P
has a 12-month target of $18, which matches our six-month technical
Top Stock #4 - Tupperware Brands (TUP)
Tupperware Brands Corp.
) is a global direct seller of multiple brands with a line of goods
that focuses on kitchen storage and serving solutions, as well as
personal-care products. Over 60% of sales in 2011 are expected to
come from Europe and Asia.
S&P estimates that 2011 earnings will increase to $4.24, up
16% from an estimated $3.66 in 2010. The 2005 purchase of
Sara Lee Corp.'s
) direct-sales business, which has a high growth rate, should be a
long-term benefit. S&P rates TUP a "four-star buy" with a
12-month target of $61. TUP's annual dividend yield is 2.1%.
Technically, TUP had a major breakaway gap in early February,
which targets the stock for the mid $60s. Longer term, TUP could go
Top Stock #5 - QEP Resources (QEP)
QEP Resources Inc.
) is a leading independent oil and gas exploration and production
company, which spun off from
last year. It focuses primarily on the Rocky Mountain and
Mid-Continent regions of the United States.
S&P estimates earnings of $1.38 in 2011 and $2 in 2012. Like
many exploration companies, QEP is a speculative stock, but growth
from its Mid-Continent region lifted production by 21% in 2010
versus 11% in 2009, and S&P is estimating a 15% production
growth that will enable it to fund its capital program via cash
flow in 2011. S&P's 12-month target for QEP is $45, and they
have a "four-star buy" on the stock.
Technically, a break over $42 should produce a trading target of
$48. But QEP could also be an excellent long-term performer with a
much higher target.
Top Stock #6 - V.F. Corp. (VFC)
Global apparel company
) designs and manufactures, or sources from independent
contractors, a variety of apparel and footwear for all ages. Its
Vans and North Face brands are viewed as growth drivers, along with
its new store growth in Asia. According to Standard & Poor's,
VFC is transforming the denim and daypack area with lifestyle
S&P's 12-month target was recently increased to $110, and it
gives the stock a "five-star strong buy" rating. Technically, after
consolidating for over a year between $70 and $90, the stock broke
a quadruple-top with an impressive breakaway gap with a technical
target of $110. VFC's annual dividend yield is 2.6%.