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While there is immense uncertainty surrounding the stock market and the US economic outlook, there are a number of stocks that look ready to surge in value, as they are well placed in industries which, despite the gloomy economic outlook, are positioned for earnings growth. This article will analyze five of stocks that have crossed their 200-day simple moving averages to determine if they will continue to grow in value.

Kohl’s Corporation (NYSE:KSS)

Kohl’s Corporation has a market cap of $14.60 billion and a price to earnings ratio of 13.65. Its 52-week trading range is $42.14 to $58.00. At the time of writing, the last trading price was $54.19. It reported second-quarter earnings 2011 of $4.25 billion, an increase from first-quarter earnings of $4.16 billion. Second-quarter net income was $299 million, a substantial increase from first-quarter net income of $201 million. It has quarterly revenue growth of 15.08%, a return on equity of 3.06% and pays a dividend with a yield of 1.90%.

One of Kohl’s closest competitors is Target Corp (NYSE:TGT). Target last traded at $54.64 and has a market cap of $36.89 billion. It has a price to earnings ratio of 12.98, quarterly revenue growth of 4.60% and a return on equity of 19.51%. It pays a dividend with a yield of 2.20%. Based on these key performance indicators, Kohl’s has better growth potential and pays a higher-yielding dividend.

Kohl’s second quarter 2011 balance sheet showed cash of $1.17 billion, a decrease from first-quarter cash of $1.67 billion. It had net tangible assets in the second quarter of $7.08 billion, a decrease from the first quarter's net tangible assets of $7.56 billion. Its quarterly revenue growth of 15.08% versus an industry average of 0.00%, and a return on equity of 3.06% versus an industry average of 12.70%, show that it is outperforming the majority of its peers, although it needs to focus on improving return on equity.

The short-term earnings outlook for department stores is subdued due to the current economic uncertainty, high unemployment and poor consumer sentiment. Goldman Sachs in a recent economic whitepaper predicted the unemployment rate to remain above 7% until at least 2013.

When the poor industry earnings outlook is considered in conjunction with the decrease in cash, Kohl’s does not appear to be a good investment. However, when the company’s solid performance indicators are considered in conjunction with increased earnings generated, the company has solid growth prospects. Accordingly, I rate Kohl’s as a buy.

SanDisk Corporation (NASDAQ:SNDK)

SanDisk Corporation has a market cap of $11.90 billion and a price to earnings ratio of 9.39. For a 52-week period its trading range has been $32.24 to $53.61. Its last trading price was $49.76. The company reported second-quarter earnings for 2011 as $1.37 billion, an increase from first-quarter earnings of $1.29 billion. Second-quarter net income was $248.39 million, an increase from first-quarter net income of $224.12 million. It has quarterly revenue growth of 16.60%, and a return on equity of 23.43%. It doesn’t currently pay a dividend.

One of SanDisk’s closest competitors is Micron Technology Inc (NASDAQ:MU). Micron Technology last traded at $5.46 and has a market cap of $5.42 billion. It has quarterly revenue growth of -14.20%, a return on equity of 1.93% and doesn’t pay a dividend. Based on these performance indicators, SanDisk is substantially outperforming Micron Technology.

SanDisk’s cash position has improved, its second quarter 2011 balance sheet showed $974.85 million in cash, a marginal increase from $974.45 million in the first quarter. Its quarterly revenue growth of 16.60% is greater than the industry average of 12.80%, and its return on equity of 23.43% is greater than an industry average of 11.50%. Based on these performance indicators, SanDisk is outperforming many of its peers.

Currently the outlook for the semiconductor memory chips industry is quite subdued, primarily due to the poor economy, high unemployment and poor consumer sentiment that are driving down demand.

However, contrary to the earnings outlook for the industry, SanDisk is performing strongly, as it has grown its revenue, net income and cash holdings in a difficult economic environment. Accordingly, I rate SanDisk as a buy.

Jabil Circuit Inc (NYSE:JBL)

Jabil Circuit Inc has a market cap of $4.24 billion with a price to earnings ratio of 11.51. For a 52-week period its trading range has been $13.67 to $23.09. Its last trading price was $19.92. The company reported second-quarter earnings 2011 as $4.23 billion, an increase from first-quarter earnings of $3.93 billion. Second-quarter net income was $104.70 million, an increase from first-quarter net income of $55.40 million. The company is achieving quarterly revenue growth of 10.90%, a return on equity of 22.03%, and pays a dividend with a yield of 1.50%.

One of Jabil Circuit’s closest competitors is Flextronics International Ltd (NASDAQ:FLEX). It has a market cap of $4.82 billion, with a price to earnings ratio of 8.42. It has quarterly revenue growth of 15.00%, a return on equity of 29.00%, and currently doesn’t pay a dividend. Based on these performance indicators, it is marginally outperforming Jabil Circuits.

Jabil Circuit’s cash position has declined; its second-quarter 2011 balance sheet showed $1.56 billion in cash, a decrease from $1.75 billion in the first quarter. Jabil Circuits' quarterly revenue growth of 15.00% versus the industry average of 5.90%, and a return on equity of 29.00% versus an industry average of 9.90%, indicate that the company is outperforming many of its peers.

The earnings outlook for the printed circuit board industry is subdued due to the current economic uncertainty, high unemployment and poor consumer sentiment, all of which have led to a drop in domestic demand. However, a weak dollar makes US-manufactured goods more attractive to overseas purchasers, and this bodes well for US manufacturers such as Jabil Circuit.

When it is also considered that Jabil Circuit has posted a strong quarterly growth in net income and has strong performance indicators, I rate the company as a buy.

Vodafone Group Plc (NASDAQ:VOD)

Vodafone has a market cap of $144.47 billion and a price to earnings ratio of 1172. Its 52-week trading range has been $24.31 to $29.75. Its last trading price was $28.01. It reported second-quarter 2011 earnings of $18.33 billion, an increase from first-quarter earnings of $17.80 billion. Second-quarter net income was $335.5 million, a substantial decrease from first-quarter net income of $5.94 billion. This can be attributed to a substantial write-down in goodwill to the value of 4.72 billion, which was offset against income in the second quarter. Vodafone has quarterly revenue growth of 2.50%, a return on equity of 8.82%, and pays a dividend with a yield of 6.90%.

One of Vodafone’s closest competitors is BT Group (NYSE:BT). BT Group last traded at $182.00 and has a market cap of $14.01 billion. It has a price to earnings ratio of 923.86, quarterly revenue growth of -4.80% and no return on equity. BT Group doesn’t pay a dividend. Based on current performance indicators, Vodafone is outperforming BT Group.

Vodafone’s cash position has improved: The second-quarter balance sheet showed $9.85 billion in cash, a substantial decrease from $14.35 billion for the first quarter. Vodafone’s quarterly revenue growth rate of 2.50% is less than the industry average of 22.30%, and its return on equity of 8.82% is less than the industry average of 13.30%. This indicates that Vodafone is underperforming many of its peers.

The earnings growth outlook for the wireless communications industry remains positive, even when considering the projected low economic growth, high unemployment and poor consumer sentiment. This occurs as it is primarily a major infrastructure product for both developed and emerging countries.

Vodafone also holds a dominant position in this industry as it is the largest industry participant by market cap. This provides it with the opportunity to use this size to leverage revenue growth. But historically it has consistently failed to leverage earnings growth from its dominant size.

UnitedHealth Group Incorporated (NYSE:UNH)

UnitedHealth Group Incorporated has a market cap of $51.90 billion and a price to earnings ratio of 10.64. Its 52-week trading range is $34.50 to $53.50. Its last trading price was $47.92. It reported second-quarter earnings in 2011 of $25.23 billion, a marginal decrease from first-quarter earnings of $25.43 billion. Second-quarter net income was $1.27 billion, a decrease from first-quarter net income of $1.35 billion. UnitedHealth Group has quarterly revenue growth of 6.80%, a return on equity of 18.42%, and pays a dividend with a yield of 1.40%.

One of UnitedHealth Group’s closest competitors is WellPoint Inc (WLP). WellPoint last traded at $66.65 and has a market cap of $24.04 billion. It has a price to earnings ratio of 8.83, quarterly revenue growth of 4.60% and a return on equity of 12.16%. It currently pays a dividend with a yield of 1.50%. Based on these key performance indicators, it I being outperformed by UnitedHealth Group.

UnitedHealth Group’s second-quarter 2011 balance sheet showed cash of $9.78 billion, a marginal decrease from first-quarter cash of $9.79 billion. In the second quarter 2011, it had net tangible assets of $1.062 billion, a substantial increase from first quarter’s $285 million.

UnitedHealth’s quarterly revenue growth of 5.30% versus an industry average of 21.60%, and a return on equity of 0.55% versus an industry average of 17.20%, indicate that it is underperforming many of its peers.

The outlook for the health care plan industry is subdued due to the poor state of the broader economy and possible policy changes to the US healthcare system. However, UnitedHealth is the largest industry participant by market cap, and it has solid performance indicators. On this basis I believe that the upside potential for UnitedHealth is good, and rate the company as buy.

Source: 5 Bullish Stocks Ready To Move Higher