6 Get Rich Slow Stocks To Buy On Every Dip

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Includes: AAPL, AMZN, CMG, GOOG, GRPN, MCD, MSFT, PNRA, WFM
by: Hawkinvest

Many stocks have their ups and downs and unless you buy them when they are down and sell them when they are up, you might end up with very little to show for in terms of gains even after holding them for a couple years or more. However, there are a few stocks that have performed incredibly for years. This has been due to product offerings that are superior to what other companies offer, combined with an underlying trend that creates increasing consumer demand for their products. If you can invest in a trend early, the rewards can be life changing. Just think about the trends and investment gains that were in place for the early investors in Microsoft (NASDAQ:MSFT), McDonald's (NYSE:MCD) and others. Even if you don't invest early, there still can be substantial rewards when buying stocks in companies that are riding a trend much higher. These stocks have been strong performers over the long run and a strategy of buying shares on dips is likely to continue to payoff just as it has historically. While these stocks do rise and fall with the markets, the overall trend has been up and chances are these stocks will be higher in 2, 5, and 10 years from now. All of these stocks have matured somewhat so they might not offer the returns they have in the past, but they still could be "get rich" slow stocks for longer term investors. Here are a number of companies that offer superior products or services that are riding a trend of increased consumer demand for their products that look like solid buys on dips:

Whole Foods Market (NASDAQ:WFM) is a leading food retailer specializing on organic and natural products for health conscious consumers. The rising consumer for healthy and organic products is growing and that is allowing Whole Foods to grow and capture higher margins when compared to most grocery retailers. Buying dips on this stock has historically been a great strategy for investors.

Here are some key points for WFM:

  • Current share price: $61.08
  • The 52 week range is $34.04 to $68
  • Earnings estimates for 2011: $1.91 per share
  • Earnings estimates for 2012: $2.20 per share
  • Annual dividend: 40 cents per share which yields .7%
  • Book value: $16.06 per share

Panera Bread Company (NASDAQ:PNRA) is a specialty restaurant chain offering premium soups, sandwiches, salads and other products nationwide. This company has seen solid growth over the past several years and the stock has been a fantastic investment for long term investors. Panera is offering a higher quality food product like salads and soups that many consumers believe is more healthy than most typical fast food chains. The other key to Panera's success is that they offer healthier choices with affordable prices that work in a tough economy.

Here are some key points for PNRA:

  • Current share price: $110.95
  • The 52 week range is $77.55 to $133.43
  • Earnings estimates for 2011: $4.58 per share
  • Earnings estimates for 2012: $5.28 per share
  • Annual dividend: none
  • Book value: $22.48

Apple Computer, Inc. (NASDAQ:AAPL) is a maker of the popular iPhone, iPad, Mac computer and more. This stock is likely to be a great long term investment on any dips. Even when Steve Jobs resigned as CEO recently, the stock only dipped briefly. This just shows how strong the demand is for the stock, not much can take it lower and when it does go down, it usually pops back up quickly. Consumer demand remains strong for almost every product made by Apple, and with new product launches such as the Iphone 4s and Ipad 3 possibly coming soon as well as the holiday season, this stock should continue to outperform.

Here are some key points for AAPL:

  • Current share price: $383.58
  • The 52 week range is $235.56 to $404.50
  • Earnings estimates for 2011: $27.41 per share
  • Earnings estimates for 2012: $32.12 per share
  • Annual dividend: none
  • Book value: 74.81

Amazon.com (NASDAQ:AMZN) is a leading online retailer that has grown into much more than books. Amazon is involved in video streaming, cloud computing, online deals similar to Groupon (NASDAQ:GRPN), and more. Jeff Bezos has made a lot of money for his investors and this stock continues to show promise. The price to earnings ratio is a little rich, but it almost always has been and that hasn't stopped the stock from going higher.

Here are some key points for AMZN:

  • Current share price: $199.27
  • The 52 week range is $122.25 to $227.45
  • Earnings estimates for 2011: $2 per share
  • Earnings estimates for 2012: $3.25 per share
  • Annual dividend: none
  • Book value: $17.10

Chipotle Mexican Grill (NYSE:CMG) operates a number of restaurants that offer high quality and affordable Mexican foods. This stock has been a market leader but the price to earnings ratio of about 42, is so much higher than almost any other stock in this market that I can't even get close to considering a buy, unless the stock fell under $200. If this company were to miss earnings, the stock could drop hard so it's too risky for me. On this one, I think it makes sense to wait. At this price level, I believe there is too much risk and not enough reward for a restaurant chain. However, the company is well run and the food they offer should continue to see strong demand. The only issue is that too many people are paying too much money to participate in this right now. I am waiting for a sharp pull back on CMG.

Here are some key points for CMG:

  • Current share price: $296.46
  • The 52 week range is $142.82 to $337.32
  • Earnings estimates for 2011: $6.82 per share
  • Earnings estimates for 2012: $8.64 per share
  • Annual dividend: none
  • Book value: $30.01

Google, Inc. (NASDAQ:GOOG) offers a wide variety of online products and services ranging from advertising online to email, maps, and more. Google has been one of the leading innovators in the Internet sector and that should continue. This stock rose to over $600 after a solid earnings report was released just weeks ago, however, the market correction and a new acquisition by Google has brought the price down to very reasonable levels. Google has a very solid cash rich balance sheet and some very smart people working for it, this should lead to more growth and innovation in the future.

Here are some key points for GOOG:

  • Current share price: $526.86
  • The 52 week range is $447.65 to $642.96
  • Earnings estimates for 2011: $35.45
  • Earnings estimates for 2012: $42.02
  • Annual dividend: none
  • Book value: $161.13

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.