4 Stocks To Buy In 2011

January 3rd, 2011 | Filed under: Editor's Pick, Stock Recommendations, , , , ,

New Year! New Stocks! See my 4 stocks to buy in 2012.

12/31/11 – See updated follow-up of 4 Stocks to Buy in 2011 FINAL Results.
09/30/11 – See updated follow-up of 4 Stocks to Buy in 2011 Q3 Results.
06/30/11 – See updated follow-up of 4 Stocks to Buy in 2011 Q2 Results.

03/31/11 – See updated follow-up of 4 Stocks to Buy in 2011 Q1 Results.

After a rousing 70% in 2009 and 20% gains in 2010, I am left with the seemingly impossible task to try and pick 4 stocks to buy in 2011.

Not that the task is impossible, but with every year of recovering stocks the picking gets a little more riskier.  With stocks continuing to rise, one bad pick could mean the difference between a happy year and a sad year. No longer can you just look for quality names that have been drastically oversold.

Anyways, no excuses below are my 4 stocks to buy in 2011. Wish me luck!

Some interesting story lines to watch in 2011 include:

  • Will oil continue to climb throughout 2011 given the already high price of plus $90 a barrel?
  • Will banks find any form of stability? Will we see any solutions in the mortgage mess?
  • Will the increase in consumer shopping we saw in the 2010 holiday season carry over into 2011 or will they go back into hiding?
  • Is this the year Latin America, specifically Brazil, sees substantial growth?
  • Will the US automotive industry and other domestically manufactured goods come to forefront once again?

Below are my 4 stocks to buy in 2011 along with the closing price as of December 31, 2010.

Whirlpool (WHR)

The world’s leading maker of major home appliances has a lot riding for itself in 2011. Whirlpool has tons of cash at its disposal and a beefy dividend expected to rise sometime in 2011.

A rising US housing market (even just a little) bodes well for Whirlpool, but as emerging market continue to grow the company has done a good job of preparing themselves to dominate those new markets. For instance, in India, they produced inexpensive three-door refrigerators with a special vegetable drawer. In Brazil, they produce washers for as little as $150 to help reflect the lower per capita income of the back country compared to what we enjoy here. Their next big push is to move more aggressively into China where they have relatively modest exposure. That should be another reason to like the stock.

I look for this stock to be around $120 by year’s end.

Trend analysis from MarketClub says the stock is up.

JPMorgan Chase (JPM)

After flip-flopping between a handful of financials, I decided to go with what I believe to be the “best of breed” in this category- JPMorgan Chase.

Along with the possibility of a dividend boost sometime in 2011 and a pop in loan growth and capital-markets businesses, I’ll take my chances with JP Morgan.

Trend analysis from MarketClub says the stock is up.

Petrobras (PZE)

One of the best trading advices I have ever received is to avoid sectors/stocks where everybody is running to. With crude oil expected to have a monster year in 2011 and at already over $90 a barrel, you can see why I am a little hesitant to head into this sector (althought 2 of my 4 stocks have some exposure to the sector).

That being said, I believe I have found a great oil company that doesn’t just rely on the price of oil but also has a huge part in oil exploration in South America (particularly off the coast of Brazil).

With an Argentina-based integrated company primarily engaged in the energy sector. Petrobras conducts oil exploration and production activities in Argentina, Bolivia, Ecuador, Peru and Venezuela. The primary location of Petrobras is one reason to absolutely love this stock since it’s highly concentrated in the hot South American emerging markets.

Another reason to consider playing this stock is for its solid dividend of 57 cents a share which equates to a yield of 2.4%

Trend analysis from MarketClub says the stock is up.

Schlumberger (SLB)

3 years in a row? When you have a hot hand, keep using it right? For any portfolio you need an energy/oil play and I just love all this company has to offer. Not to mention the flaws in its biggest competitor Haliburton (HAL) that make everything just that much better.

If oil continues to rise… awesome, but if doesn’t it wont hurt Schlumberger as much as similar companies may feel it.

Trend analysis from MarketClub says the stock is up.

Want more? – To be honest, there are just too many stocks I love so here are some more you should check out in 2011: Crocs (CROX), Wells Fargo (WFC), Bank of America (BAC), Apple (AAPL), Caterpillar (CAT), Comast (CMCSA), and Ford (F).

So what do you think? – Do you like my for stocks to buy in 2011? Do you hate them? What other stocks are you looking at? Leave you comment below.

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