10 Best Stocks for 2011

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InvestorPlace Experts Release Their Best Stocks for 2011

InvestorPlace Top 10 Stocks for 2011

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If you could pick one stock to invest in this year — and make a bundle — what would it be?

That’s exactly the question InvestorPlace put to 10 of Wall Street’s sharpest minds. Here’s what they recommend at their best stock picks

We Want to Hear from YOU! Tell us which stock gets your vote as the Best Stock for 2011 — take our InvestorPlace poll located at the bottom right of your screen.

#1 – Microsoft

Microsoft (NASDAQ:MSFT)

15 'Bargain' Stocks About to Go Bust

Recommended by: James Altucher, author of Trade Like Warren Buffett

Admittedly, Microsoft (NASDAQ: MSFT) didn’t give investors a lot to be happy about in 2010. The stock was kicked to the curb, down 8.4% last year while the broader market gained almost 13%.

If you’re a momentum investor, this pick may turn you off, but I believe that the time is right for the rotation of capital back into this old standard.

Why? Here are some of the biggest reasons.

#2 – Otelco

Otelco (NYSE:OTT)

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Recommended by: Neil George, editor of The Pay Me Strategy

Your best bet for the new year is a big dividend payer that has proven it can keep delivering on the bottom line: Otelco, Inc. (NASDAQ: OTT).

Not only does this regional telecom ring up a plump 9% yield, since coming to the market in 2004 — and through all of the market, economic and industry ups and downs — investors have seen returns in excess of 127%, or an average annual return of over 14%.

Find out more about this top dividend stock for 2011 here.

#3 – CNOOC

CNOOC (NYSE:CEO)

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Recommended by: Robert Hsu, editor of China Strategy

Through all of 2010’s ups and downs in the global markets, China stood out as a major player on the world stage. In fact, right now China’s economic growth is matched by no other major economy in the world, and the wealth potential there is life-changing.

That’s why my top stock pick is China National Offshore Oil Company (NYSE: CEO) — China’s offshore exploration and production energy giant and the most dynamic of China’s Big Three state-owned energy giants.

Let me tell you why I am so bullish on CNOOC in the new year.

#4 – Evercore

Evercore (NYSE:EVR)

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Recommended by: Hilary Kramer, editor of GameChangers

If you’ve never heard of it, you’re not alone. Evercore Partners Inc. (NYSE: EVR) is an emerging powerhouse on Wall Street that specializes in three of the highest-margin businesses in the entire corporate spectrum: mergers & acquisitions (M&A), restructuring (bankruptcy work) and asset management.

Of those three, I expect the big driver in 2011 to be EVR’s work in M&A.

#5 – Cognizant Technolgoy

Cognizant (NASDAQ:CTSH)

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Recommended by: Jon Markman, editor of Trader’s Advantage

It’s going to be a ground war in 2011 as Google, Apple and Microsoft battle for mobile Internet supremacy; as Kellogg and General Mills duke it out on store shelves in the battle for families’ cereal bowl; as ConocoPhilips and Exxon claw each other in an effort to grab new fields, acquisition candidates and drilling rigs; and as Morgan Stanley and Goldman Sachs elbow each other for merger deals and trading clients.

Handicapping the winners of these fights (and others) will be tough, but there is another way to bet in 2011. It’s a bet that all of these companies are going to want to focus on what they do best — and less time dealing with the nitty-gritty business details at which they are less accomplished. That’s where offshore providers of IT services and business processes come in, specifically Cognizant Technology Solutions (NASDAQ: CTSH).

Find out why tech stock CTSH is my favorite investment for 2011 here.

#6 – Zions

Zions Bancorporation (NASDAQ:ZION)

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Recommended by: Anthony Mirhaydari, editor of The Edge

The combination of an improving labor market and a strengthening housing market, along with ultra-cheap short-term financing and attractive long-term investments, will work wonders for even the most beleaguered banks in 2011. So if you’re looking for a leveraged way to express a positive opinion on the future of the economy — look no further than Zions Bancorporation (NASDAQ: ZION).

At the epicenter of the mortgage meltdown, this once-battered regional bank is poised to bounce back dramatically.

#7 – Zalicus

Zalicus (NASDAQ:ZLCS)

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Recommended by: Michael Murphy, editor of New World Investor

You may have to wait for the second half of the year for most of the gains, but Zalicus, Inc. (NASDAQ: ZLCS) is what some call an oxymoron: a low-risk, development-stage biotech.

Find out why this unknown biotech is my top stock for 2011 here.

#8 – Bank of America

Bank of America (NYSE:BAC)

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Recommended by: Jeff Reeves, editor of InvestorPlace.com

Admittedly, Bank of America (NYSE: BAC) is a bit of a risky call despite BAC stock rising almost 22% in December. The company has many problems in many areas — from a backlog of foreclosures to new regulations, to Uncle Sam’s ownership stake to plain old bad PR. But if you don’t want any risk, you simply shouldn’t be buying individual stocks in the current volatile market.

I won’t pretend there aren’t plenty of reasons to talk yourself out of buying BAC. But here are the reasons I found that talked me into buying.

#9 – Visa

Visa (NYSE:V)

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Recommended by: Charles Sizemore, editor of The Sizemore Investment Letter

One of the “big picture” economic themes that I expect to play out over 2011 and beyond is the secular shift to a global cashless society. Though the process is well on its way in the U.S. and Europe, roughly 40% of all transactions are still made with cash and paper checks according to Barron’s.

This means that even in “boring” developed markets, there is ample room for growth in electronic payments. And there is no better company to benefit from this trend than credit card giant Visa (NYSE: V).

Read my complete recommendation on why Visa is a top stock for 2011 here.

#10 – Mindspeed

Mindspeed (NASDAQ:MSPD)

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Recommended by: Nancy Zambell, editor of Buried Treasures Under $10

At first glance, it’s puzzling why Mindspeed Technologies, Inc. (NASDAQ: MSPD) didn’t see its share price take off in 2010. Technology stocks saw a recovery, and the “tech buzz” gained momentum during the year. But when you consider that it operates in a very volatile industry — semiconductors — it makes sense.

But Mindspeed is hard at work capturing new contracts and agreements, which bodes very well for the company’s 2011 financials. And with Mindspeed marching quickly forward into 4G, I think the potential is dynamite.

That’s why I’m targeting 130% gains in this fabless semiconductor firm.


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