Dependence on foreign oil will be the hot campaign issue of 2008. With gas prices already over $4.00 a gallon and oil prices skyrocketing well above $120 a barrel, the nation’s energy crisis (just like the price of oil and gas) has unfortunately hit its peak.
That’s why three of my Top 5 Stocks for June are energy stocks. If you want great stock advice in this market–so that you can actually afford to fill up before driving to the beach this summer–you’ll want to buy these Top 5 Stocks for June.
Stock Advice: 5 Ways to Profit From the High Cost of Oil
As investors, we need to be thinking about how to profit in this new age of record-breaking oil prices. Sure, there will be lots of good stock advice given in the oil and natural gas sectors, but the biggest movers will be in the alternative energy and commodity-related stocks.
That’s why in this month’s Top 5 Stocks, I’m recommending two new energy plays that are sure to heat up your portfolio this summer. Let’s start with my #1 solar energy stock that has been in the top spot for more than four months now…and for good reason!
• This solar stock trades at approximately 50 times estimated earnings, primarily due to the fact that it had an unprecedented 281% sales growth and 515% earnings growth during the past four quarters. Trust me, no matter who gets elected, the stock should continue on its growth path since alternative energy companies are expected to prosper in the face of record high oil prices. The company is based in Arizona and sells predominately to Europe, but its U.S. sales are expected to boom next year. The stock recently hit a new 52-week high of $317. This company’s management is running a booming business that can only improve in the face of record oil prices. This solar stock will be a buy for months to come.
• My number-two stock pick of the month recently paid $221 million for Romania’s Ductil Steel, which operates two facilities and produced about 340,000 metric tons of liquid steel last year. Additionally, it also agreed to pay $1.5 billion for Oriel Resources PLC, a British-based company that owns some chrome and nickel mines in Kazakhstan. This acquisition will help provide with the raw chrome it needs to maintain its role as Russia’s largest producer of stainless steel. This “ruskie” is an excellent buy.
• What Saudi Arabia is to oil, this company is to fertilizer. >Rounding out my top three is one of the world’s largest makers of phosphate and crop nutrients. With the continued high price of corn, soybeans, wheat and other commodities that are in short supply, agricultural stocks like this one are simply growing by leaps and bounds. Even though the company is located in Minnesota, more than two-thirds of their business comes from outside of the United States. While the U.S. economy has caught the flu, most other countries are experiencing nothing more than an occasional sniffle. This stock is up over 202% and still climbing!
• Right now, this stock proves that going green grows green! The company is seeing its business skyrocket in the U.S. to meet the growing demand for ethanol. During the past four quarters, the company has posted 34% sales growth and 21.6% earnings growth. The second-quarter showed a 63% jump in earnings. The company just declared this quarter as their best ever, with $285.7 million, or 88 cents per share in profits.
• This tech giant is among the few stocks still benefiting from consumer spending, making those that subscribe to my Blue Chip Growth Letter, very lucky investors. While consumer spending as a whole continues to go down, the buying of new gadgets and gizmos is taking far less of a hit. And there’s much, much more to come for this company. In fact, many expect it to introduce a touch screen smartphone along with popular Wi-Fi and GPS features that should help make it yet another hit with consumers. In addition to new models, international sales will also be a source of new customers and continued growth. Over a third of its subscriber base is outside the United States right now and the company expects that percentage to grow in 2008.
There’s no doubt about it: Right now is the best time to be fully invested in the stock market. The stock market is in a very good mood lately, and our Blue Chip Growth stocks are poised to take full advantage. In fact, Wall Street is obsessed with identifying the hot spots in the economy, whether it is booming business in agriculture, oil service, or specialty tech.
My stock advice ot my Blue Chip Growth subscribers is that I expect that the breadth and power of the overall stock market will improve in the upcoming months. The stock market leaders, like these Top 5 Stocks for June are poised to perform exceptionally well.
To get the names of these 5 stocks, sign up today for your risk-free trial subscription to Blue Chip Growth! I dedicate half of my June issue to analyzing buy prices, earnings data and analysts expectations just for these five stocks! That’s how excited I am about their performance! Sign up for your free trial subscription to Blue Chip Growth right here, and get in on the action today!
