4 Likely Stock Winners for 2011

Includes: AMZN, CTRP, KMB, PEP
by: Intelligent Speculator

After winning the stock picking competition in 2009, 2010 ended up being a fairly big disappointment, so I’m looking forward to the new challenge of picking 4 stocks that will do well in 2011. If you are a regular reader of IntelligentSpeculator, you have certainly noticed the growing importance of dividend stocks on our blog. I am a big believer in passive income, in the lifestyle that it can provide and the growing importance of having steady cash inflows. I have written quite a bit about dividend stocks and the things I look for when selecting them. Thus, I will be taking 2 dividend stocks in this year’s picks.

Kimberly-Clarke (NYSE:KMB)

I did an extensive analysis in a recent newsletter but basically this stock has a lot going for it. The company has strong fundamentals, solid products (such as Kleenex and Huggies) and has been constantly increasing its dividend. It does look like a winning stock to me and while I do not expect huge returns, I would expect the return to be well above average in 2011 - and that is exactly what I’m looking for.

(Click charts to expand)

Pepsi (NYSE:PEP)

Last November, I did an analysis of two very strong dividend stocks; Coca-Cola (NYSE:KO) and Pepsi (PEP). Pepsi won that contest fairly easily and has also come up a few times in the more detailed stock analysis that are published each month in our free newsletter. Because of that, I have decided to go long on Pepsi also expecting the stock to outperform the market in the next few years. Pepsi has continued to be aggressive in acquisitions with a recent acquisition in Russia.


CTrip trades at a decent P/E ratio of 27 despite having annual growth over 30%.. I think the company is well positioned as a leader in online travel in China, one of the biggest growth markets for travel right now in the world.


I have not always been the most vocal supporter of Amazon in recent years and have pointed to some things I would change if I were CEO Jeff Bezos. That being said, the Kindle has been more successful than many including myself had predicted and while the strategy is not perfect, I think the company will be able to keep up the strong growth in revenues and earnings.