Investor activity can make a stock price go up like nothing else. The following is my analysis of the best stocks in terms of volumes and investor activity, ranging from tech companies to manufacturing, all of which are making headlines for capturing investor interest.
Goodrich Corporation (NYSE:GR) is a 140 year old Fortune 500 company and a leading worldwide supplier to the aircraft industry; if there’s an aircraft in the air, it’s likely that a Goodrich product is flying with it. GR has benefitted from the growth in the aviation industry, particularly clients such as Boeing and Airbus from which GR gets about 34% of its annual business. In the last two years, GR has gone on a shopping spree, taking over Crompton Technology Group, Ltd. (NASDAQ:CTG), the cabin management assets of DeCrane Holdings Co., Microtecnica and recently in October 2011, Winslow Marine Products Corporation.
In terms of valuations, the price earnings ratio of 22.75 is well above the industry average, especially with a high price to free cash ratio of 80.40. The stock a bit expensive trading at $120.60 near its 52 week high of $122.33, however, few others can boast a 17% growth in sales for the second quarter 2011 with a dividend payout of 21.29% and dividend yield at 0.96.
Bristol-Myers Squibb Company (NYSE:BMY) is a global pharmaceutical major, manufacturing products in eight major countries including the US and Puerto Rico among others. The company has a special focus on cardiovascular disease, mental illness, cancer, HIV/AIDS and hepatitis B and C. BMY’s volumes have taken a huge leap from just 11 million in September to 23 million in first week of October, suggesting major investor interest.
Currently trading at $32.82, near the high in the 52 week range of $33.08- $24.97, BMY has a higher operating margin than most of its peers, such as Pfizer (NYSE:PFE), Abbott Laboratories (NYSE:ABT) at 32.35%, and quarterly revenue growth (year on year basis) of 14%. A $55 billion market capitalization company with a better than industry leading dividend payout of 67% and return on equity of over 20%, BMY is a serious contender in the global pharma industry.
Range Resources Corporation (NYSE:RRC) has one of the lowest break even costs in the industry at just $5, and is therefore one the leading oil and natural gas exploration companies. RRC boasts reserves of 4.4 trillion cubic feet, and has been trading with huge volumes lately, especially in the last week of September when volumes rose to 16 million. The stock is currently trading at $62.92, well above its yearly low of $35.11. This is not surprising, considering how many people are chasing this stock.
RRC ended Q2 2011 with its strongest balance sheet in its history of operations. As of June 30, 2011, RRC had $289 million in cash on its balance sheet with a current ratio of 1.26, which still hits industry par. Management expects a turnaround this fiscal year from the previous year’s negative ROI of 6%, based on a production increase of 8% on a year on year basis.
Apple Inc (NASDAQ:AAPL) has gone from a company with headquarters in the founder’s garage to becoming the most valuable company in the world, with more cash than the U.S. Treasury, according to its daily statement issued in July. AAPL develops and sells a wide range of personal computers, media devices, mobile devices and portable digital music players such as the iPod, iPad and iPhone, having sold over 20 million units in the quarter ended June 2011.
Apple is steadily increasing earnings per share in the last 10 quarters, registering a QoQ growth of 70%, a huge cash balance and return on equity of 42%, compared to the industry average of 13%. The stock is currently trading at $400.29, towards the high end of the 52 week range of $422.86-$292.49, moving above the 50, 100day moving averages, all of which point an upward trend. I believe the stock could be teetering at the moment, considering the high valuation and loss of the irreplaceable Steve Jobs.
Amazon Inc (NASDAQ:AMZN), founded in 1994, is the world’s foremost online megastore and brainchild of Jeff Bezos. I would be surprised if a 5 year old somewhere in Mongolia hasn’t heard of Amazon.com, since international sales jumped over 50%, taking its share to about nearly half, at 45% of total revenues. Once the online retailer of books, you can find virtually anything from socks to hard to find collectibles on amazon.com, with a special retail channel from third party sellers.
Over the last 12 quarters, AMZN has seen its revenues boom. On a year to year basis, in revenue for 2010 was up 51% to $40 billion, with a forward earnings per share of $0.86 for Q4 2011 due to increase in online traffic from developing regions, such as China and Asia-Pacific; the sky’s the limit for the stock. Currently trading around $236, it is near the 52 week high of $244 with a towering P/E ratio of 103.8, well above the industry average of just 30.89. With the holiday season coming up, Kindle Fire should put a fire in AMZN’s revenues.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.