The market has roared by a hefty 52% since its March low.
While rising prices wiped out some of the
most appealing valuations seen in decades, this surge in
stock prices doesn't mean you've missed the boat. And it
shouldn't deter you from making a wish list of stocks you'd
like to snag for your own portfolio.
If this truly is the beginning of a new bull market, then
there's still more room to run from here. And if it's simply
a fierce bear-market rally, then a pullback will correct
prices. Despite a mixed bag of economic news, the market
keeps treading higher, as investors who were sitting on the
sidelines since financial Armageddon last fall use every
pullback to get back in the market. That's a good sign,
because it means the unprecedented amount of cash that was on
the sidelines is now being put back to work.
Either way, if you research and build a list of stocks
you'd want to own, you'll simply need to wait until each
stock reaches your preferred price before you pounce. The
volatility in this environment should provide you
opportunities to do exactly that.
To start assembling my very own stock wish list, I used
the Fool's
CAPS screenerto find premium companies such as
Apple (Nasdaq: AAPL), which has outperformed
the market by over a hefty annual 27 percentage points over
the past 10 years.
To screen for some of the
market's best stocks, I used the following criteria:
current ratioof at least 1, to ensure sufficient
liquidity to meet current liabilities.
Return on equity north of 15%, to demonstrate
efficiency and profitability.
Five-star
ratings, our CAPS community's highest ranking.
You can review
my results in fullif you like, but here are some of the
highlights:
Company
Market Cap (in Billions)
Current Ratio
Return on Equity (Trailing 12
Months)
Diamond Offshore Drilling (NYSE:
DO)
$12.7
3.7
37.8
Johnson & Johnson (NYSE: JNJ)
$168.9
1.8
27.5
Philip Morris International (NYSE:
PM)
$91.7
1.5
64.7
PepsiCo (NYSE: PEP)
$89.5 Continued... |