New Year! New Stocks! See my 4 stocks to buy in 2012.
12/31/10 – See updated follow-up of 4 Stocks to Buy FINAL Results.
09/30/10 – See updated follow-up of 4 Stocks to Buy in 2010 Q3 Results.
06/30/10 – See updated follow-up of 4 Stocks to Buy in 2010 Q2 Results.
03/31/10 – See updated follow-up of 4 Stocks to Buy in 2010 Q1 Results.
In my opinion, 2010 will be a much harder year to pick high-flying stocks that will continue its growth throughout the year. Mainly because in 2009 we experienced much of the rebound, and the markets can only continue on such a pace for so long.
That being said, fellow financial bloggers and I are up for the challenge again with this year’s stocks to buy in 2010.
You’ll remember that last year’s returns came impart from forecasting possible trends that should arise throughout the year rather than items that should pop right now as that would almost certainly lead to an early exit in huge gains for the year.
My 4 stocks to buy in 2010 include:
1. Bank of America (BAC)
What will probably be my most controversial pick out of the bunch, I still feel there is more upside in Bank of America (BAC) than there is down. I was close to choosing JP Morgan (JPM) over BAC, but why not continue with the horse that brought me here.
You can see in the chart below that the stock is currently at a major crossroad between the 50 and 200 simple moving average (SMA). As long as the stock can remain above the 200 SMA and it doesn’t crossover the 50 SMA then this stock should be positioned to head higher by year end.
I would like to see Bank of America somewhere between $25 – $30 before 2011 strikes. For a safe bet, I would consider buying above $16 or if stock dips and bounces off 200 SMA.
2. Vale S.A (VALE)
I really think 2010 will be a huge year for Brazil (we’ll see what China has to say about that). While the Olympics do have something to do with that, much like China the region was already gaining some steam prior to preparing for the games.
Vale S.A (VALE) is the world’s largest ore producer and prices are expected to rise in 2010 by growing demand from China as the global economy improves.
By looking at the chart below, if the stock can manage to get and stay above $30, then we have a nice free flowing trading range all the way up to $42.
For a safe bet, consider buying after the stock moves above $30 or bounces off the support around $27.
3. Caterpillar (CAT)
For the longest time, Caterpillar (CAT) has been one of my favorite stocks to trade because of its huge price swings, yet that never really makes a good candiate for a long-term stock… so maybe I’m crazy.
Job creation will be a big part of 2010, and this should ultimately lead to a lot of infrastructure and labor intensive jobs which should brave well for Caterpillar.
Since July alone, the stock has doubled and looks to be consolidating right now, which could mean that its ready to head to higher levels or sink back down. You can see in the chart that this movement is right in line with the 62% retracement. Obviously we would like to see a bounce higher here.
I see initial targets in the $70′s and then perhaps $80′s. At its current state, I like the stock over $57. If we see a dip back down to $50, then consider buying some shares at that point as well.
4. Schlumberger Limited (SLB)
Regardless of where people think the price goes, oil is part of our life everyday. Although it has its ups and downs there needs to be some exposure to this commodity in every portfolio. I was really trying to find a reason to choose some stock other than Schlumberger (SLB), but there were just too many positives in its favor.
Looking at the chart, you can see that the stock is still far from its peak of nearly 2 years ago. yet it looks like Schlumberger has really just finished creating its support and looking to head higher as it just passed the 38% retracement line.
I like this stock over $63 with initial price targets of $73, $82, and $90.
Other Financial Bloggers’ Stock Recommendations
These stock picks are part of a competition between this site and others listed below…