In my family, holiday gift giving got so out of hand that we now draw names from a hat and give only one gift—and it has to be under $35.
What does this mean for you, the investor?
How about 10 great stocks under $35?
Let’s get started…
Bank of America (BAC)
Among the best retail banks in America, the stock has doubled in the past few years.
It’s also still very undervalued, trading a few pennies above $17.
It should be good for $22-$24 in 2016.
This is the best private equity firm in the world, with an $85 billion war chest to buy more assets next year.
The dividend is north of 6%.
The stock is down from the mid $40s and trades around $31.
It’s worth that previous high and more.
This unknown (but real) diagnostics company is the world leader in something called molecular diagnostics.
It has half a billion in sales, but is speculative due to few earnings.
CPHD tests are world leaders in the diagnosis of hospital acquired infections, TB, and several other maladies—with cancer on the horizon.
It’s around $35 and is good for a double in a couple of years.
TV sales are picking up as prices fall. Many screens have Corning glass.
More and more mobile devices are using glass, including Corning’s tough Gorilla Glass.
Auto sales help, as Corning makes materials for catalytic converters and real auto glass.
The stock is under $19. Short-term could see $22 if it breaks $20.
Car sales are booming with more than 18 million vehicle sales in the U.S. this year, led by high margin trucks, vans, crossovers, and SUVs.
Ford sells all of these—and its new product cycle has yet to hit earnings in full.
The stock is undervalued, trading at less than $15 when it’s worth $22.
General Motors (GM)
Yes, I’m stretching a bit…
GM is trading north of $36, but that’s close enough to $35 to make this gift list.
The company is actually in better shape than Ford.
The stock is worth $44 right now. That number will be $54 in a couple of years.
Hilton stock is a mystery.
The stock is way off its IPO price; there’s an overhang due to the large position still held by Blackstone.
Hilton is a screaming buy at $23 and change, and has put in what looks to be a firm bottom.
The Container Store (TCS)
The stock is a train wreck, but the company is not.
With incomes up and new household formation finally beginning to pick up, The Container Store is the logical place for people to buy things to hold, display and manage their stuff.
The chatter may make you nervous, and this is speculative to a certain extent, but the upside is big if the company can beat earnings estimates—especially growth estimates—for just one quarter.
Whole Foods Market (WFM)
The stock has been crushed and is out of favor, but has bottomed.
This is usually the basis of future success.
The new format stores with a smaller product line hits the streets in the second half of 2016.
They’ll likely succeed, meaning the time to get in is now.
Trading under $30 means that with two quarters of good earnings, the stock could go back to $60.
Zoe’s Kitchen (ZOES)
A speculative stock—is it the next Chipotle (CMG)?
This is a fast Mediterranean outfit of 130+ stores, funding growth from internal cash flow.
Did I mention it’s good food for the money? Try the hummus and one of the salads.
The stock will crater if they miss on growth or earnings. You’ve been warned.
If you buy any of these 10 stocks, sell some calls and generate the cash you need to buy some gifts for someone else.
Disclosure: Michael Shulman owns shares of BX and GM.
This post originally appeared on mainstreetinvestor.com.
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