The Gist
2013 is finally here and the Fiscal Cliff Fiasco is behind us. The market is currently rallying over the resolution of the fiscal cliff. The politicians found a way to make it happen at the eleventh hour as they always do.
The market set several records Wednesday as the Dow soared more than 200 points. No doubt Washington will again take center stage as the negotiations to raise the debt ceiling heat up in the coming weeks. This should provide a buying opportunity as stocks get sold off indiscriminately. I have selected five stocks to review that have the potential for solid gains in 2013.
The Goods
In my opinion, the following stocks have clear near-term catalysts for growth and may outperform the market indices in 2013. I posit this is just the beginning for these stocks which may present excellent buying opportunities at current levels.
In the following sections, we will perform a review of the fundamental and technical state of each company under review followed by an analysis of the underlying catalysts for the stocks. The following table depicts summary statistics and Wednesday's performance for the stocks. The following charts are provided by Finviz.com.
Alcatel-Lucent, S.A. (ALU)
The stock is up 25% in the last quarter. The company is trading 48% below its 52-week high and is currently trading 7% above the analysts' mean target price of $1.29 for the company. ALU was trading Wednesday for $1.40, up slightly for the day.
Fundamental Review
Fundamentally, ALU has several positives. The company's EPS is expected to grow by 55.60% next year. ALU is trading for approximately 72% of book value. The company has $2.67 in cash per share. Book value per share is $1.94. The cash flow situation was greatly improved by the recent debt deal.
Technical
