After a significant market correction, most stocks have declined and the buying opportunities abound. Many stocks are starting to rebound now, and some are able to show strength even on days when the market is dropping hard or barely up. One of the best opportunities now is to identify stocks that could emerge or re-emerge as market leaders as they are likely to outperform other stocks and rebound more quickly. Here are stocks that are showing strength and leadership potential now:
Apple, Inc. (AAPL) shares are trading over $389.30. Apple is a leading maker of computers and mobile devices. The 50-day moving average is $377.04 and the 200-day moving average is $348.15. Earnings estimates for AAPL are about $27.41 per share in 2011 and $32.12 for 2012. The 52 week range is $267.84 to $404.50. Apple is a great company and will probably continue to be a solid investment for the foreseeable future. I would buy Apple on dips. Apple has been and continues to be the mega cap market leader in my opinion.
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United Continental Holdings Inc., (UAL) shares are trading at $20.13. United is a major global airline. The 50-day moving average is $18.85 and the 200-day moving average is $22.87. UAL is estimated to earn about $3.57 per share in 2011 and $4.98 in 2012. This puts the PE ratio at just over 5. Book value is listed at $5.80 per share. With United shares selling for less than 4 times 2012 earnings estimates, it looks like a bargain. Lower oil prices will help reduce fuel costs and improve profit margins. UAL shares have bounced from recent lows and just spiked over the 50-day moving average.
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F5 Networks (FFIV) shares are trading at $83.22. F5 provides solutions that optimize networks. The 50-day moving average is about $89.09 and the 200-day moving average is about $107.75. These shares have traded in a 52 week range between $69.01 and $145.76. Earnings estimates for FFIV are about $3.72 per share in 2011 and $4.35 for 2012. FFIV shares have dropped sharply over the past few weeks but appear to be quickly reasserting the upward momentum.
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International Business Machines (IBM) shares are trading at $167.24. IBM provides a variety of information technology products and services. The shares have traded in a range between $128.54 to $185.63 in the past 52 weeks. The 50-day moving average is $171.93 and the 200-day moving average is $162.28. Earnings estimates for IBM are just over $13 per share in 2011 and about $14.77 for 2012. IBM shares barely dipped below a key support level and have started to quickly bounce higher.
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Qualcomm Inc. (QCOM) shares are trading at $53.07. QCOM makes a variety of products for mobile devices. The shares have traded in a range between $41.01 to $59.84 in the past 52 weeks. The 50-day moving average is $52.39 and the 200-day moving average is $52.37. Earnings estimates for QCOM are $3.19 per share in 2011, and $3.49 for 2012. This stock has remained extremely strong during the market correction and is likely to keep outperforming in the future.
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The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes only.
Disclosure: I am long UAL.
