Finding a double is never easy, especially in these turbulent markets. Investors tend to get frightened quickly and disregard the great opportunities that the market gives us. Its worth being patient in order to reap a 100% return. I believing the following seven stocks could double over the coming years.
Ford Motor Company (NYSE:F) primarily develops, manufactures, distributes, and services vehicles and parts worldwide. It operates in two sectors, Automotive and Financial Services.
Ford has done a fantastic job gaining market share from its competitors. Monthly sales have been rising and its new lineup of vehicles has made the brand much stronger. Ford also recently announced they will be releasing a new lineup of hybrids that will compete with the Toyota Prius. The stock has taken a hit due to its exposure to Europe. However, at its current valuation the negatives may be priced in already. Just a few weeks ago, Ford announced a quarterly dividend of 5 cents which equates to a 1.9% yield. The fact that the company is starting to pay back shareholders is a very positive sign. The stock has a forward P/E of 6.9.
Halliburton Company (NYSE:HAL) provides various products and services to the energy industry for the exploration, development, and production of oil and natural gas worldwide.
Halliburton has experienced a significant amount of volatility over the past few months. Oil prices have been volatile and the market has also been concerned with their liability in BP's deepwater rig explosion. I believe that there is still a great amount of upside to Halliburton. The demand for rigs in the U.S. is set to increase for the next several years. Halliburton has a whole lot of growth potential. The company is expected to grow at 26% a year annually for the next 5 years. The stock has a forward P/E of 8 and pays a 1% dividend.
American International Group, Inc. (NYSE:AIG) is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry.
AIG has been under pressure mainly due to the government's massive stake in the company. The government still has around a 77% stake in the company, which is about 1.5 billion shares. Many investors are concerned that government sales of the stock will keep the stock price depressed. The government mainly cares about getting taxpayer money back. They will keep selling if the price appreciates. While this is a cause for concern, I believe AIG's fundamentals are improving rapidly. The government selling is actually a positive as it allows investors to buy a great company at a depressed price. Investors just need to focus on the long-term picture and see that eventually the stock will catch up to the fundamentals. The stock has a forward P/E of 9.3.
Hewlett-Packard Company (NYSE:HPQ) offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide.
HP has had a rough year. After hiring Leo Apotheker as CEO, the stock price has fallen nearly 50%. Management has largely been clueless on how to run the largest PC maker in the world. Not to long ago they planned to scrap their PC division, but have changed their minds since. With HP experiencing so much problems, it actually might be a good time to buy. The company replaced Apotheker with Meg Whitman. Whitman did a fantastic job as CEO of eBay (NASDAQ:EBAY). I believe she will give the company the jolt it needs to get back on its feet. With the market being so pessimistic, the valuations have become compelling. The stock has a forward P/E of 5.8 and a dividend yield of 1.9%.
Vale S.A. (NYSE:VALE) engages in the exploration, production, and sale of basic metals in Brazil. The company also involves in fertilizers, logistics, and steel businesses.
Vale has been hit as the demand for iron ore and aluminum has fallen substantially this year. However, it is the best poised for a rebound. The majority of Vale's exposure is to South America, where a significant amount of growth lies ahead. Brazil is still a strong emerging market country, but the market seems to be considered with the political system and its socialist style. While politics is a big problem, I do not believe Vale will get affected due to its size and international exposure. The company pays dividends, and this year alone they paid about $1.85 in dividends. The stock has a forward P/E of 5.3.
JPMorgan Chase & Co., (NYSE:JPM) a financial holding company, provides various financial services worldwide.
Jamie Dimon has done a fantastic job of growing JPM during the financial crisis. JPM has been able to take market share away from banks such as Bank of America (NYSE:BAC). JPM has plenty of capital and is less leveraged than its peers. While investors are worried about its European exposure, Jamie Dimon has stated the maximum they could lose is $3 billion if any of the PIIGS default. JPM has also been expanding in the emerging market space, which could bear some strong earnings power for the company. The stock has a forward P/E of 6.8 and pays a 3.1% dividend.
Citigroup, Inc., (NYSE:C) a global financial services company, provides consumers, corporations, governments, and institutions with a range of financial products and services
Citigroup has improved its liquidity position in wake of Basel III requirements. The company is trading under tangible book by a large margin. The market fears that the company's assets may not be worth as much as the balance sheet states. While this is a cause for concern, the company has been raising large amounts of cash. They have reduced their risk exposure and could eventually buyback shares next year or even raise their current dividend. The stock has a forward P/E of 6.2.
Disclosure: I am long F.