Seeking Alpha
Profile| Send Message|
( followers)  

Not all stocks are winners out of the gate. There are lots of stocks in the market that have the potential for huge stock price gains over the next two years, if they can be purchased at the right price. Characteristics of these "stalwart" stocks include positive earnings, low debt to equity ratios, increasing sales rates and low price/earnings-to-growth (PEGs). Investing in these stocks is a good call for medium-term investors that are looking for big growth without paying a premium or taking on major risk.

Apache Corp. (NYSE:APA) is an independent oil and gas company with a $35.66 billion market cap. The company is priced at 7.45 times its forward earnings and has a PEG of 0.80. Over the last five years, its EPS has grown 1.49% per annum and is expected to grow 11.22% per annum over the next five years. APA has a quarter over quarter sales increase of 43.64% and a debt to equity ratio of 0.26. It recently traded at $92.84 a share.

BlackRock, Inc. (NYSE:BLK) is an asset management company with a $33.38 billion market cap. The company is priced at 14.52 times its forward earnings and has a PEG of 0.86. Over the last five years, its EPS has grown 24.71% per annum and is expected to grow 17.14% per annum over the next five years. BLK has a quarter over quarter sales increase of 6.36% and a debt to equity ratio of 0.26. It recently traded at $186.57 a share. John Paulson's Paulson & Co cut its stake in BlackRock by 47% during the third quarter.

CME Group, Inc. (NASDAQ:CME) is a national investment brokerage company with a $15.57 billion market cap. The company is priced at 12.45 times its forward earnings and has a PEG of 0.99. Over the last five years, its EPS has grown 10.19% per annum and is expected to grow 12.53% per annum over the next five years. CME has a quarter over quarter sales increase of 19.20% and a debt to equity ratio of 0.10. It recently traded at $234.50 a share.

Cummins, Inc. (NYSE:CMI) is a diversified machinery company with a $18.85 billion market cap. The company is priced at 9.96 times its forward earnings and has a PEG of 0.65. Over the last five years, its EPS has grown 13.88% per annum and is expected to grow 17.60% per annum over the next five years. CMI has a quarter over quarter sales increase of 36.02% and a debt to equity ratio of 0.14. It recently traded at $97.76 a share.

Microsoft Corp. (NASDAQ:MSFT) is an application software company with a $237.64 billion market cap. The company is priced at 9.35 times its forward earnings and has a PEG of 0.98. Over the last five years, its EPS has grown 17.63% per annum and is expected to grow 10.48% per annum over the next five years. Microsoft has a quarter over quarter sales increase of 7.27% and a debt to equity ratio of 0.20. The stock also has a dividend yield of 2.8%. It recently traded at $28.25 a share. MSFT is a top pick for David Einhorn's Greenlight Capital.

SanDisk Corp. (NASDAQ:SNDK) is a memory chip company with an $11.99 billion market cap. The company is priced at 9.88 times its forward earnings and has a PEG of 0.63. Over the last five years, its EPS has grown 22.15% per annum and is expected to grow 16.20% per annum over the next five years. SNDK has a quarter over quarter sales increase of 14.78% and a debt to equity ratio of 0.24. It recently traded at $49.89 a share.

Staples, Inc. (NASDAQ:SPLS) is an office supplies and furniture company with a $10.41 billion market cap. The company is priced at 9.99 times its forward earnings and has a PEG of 0.91. Over the last five years, its EPS has grown 3.05% per annum and is expected to grow 11.95% per annum over the next five years. SPLS has a quarter over quarter sales increase of 0.49% and a debt to equity ratio of 0.28. It recently traded at $14.89 a share.

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

Source: Stalwart Stocks That Are Poised To Pop