This is a list of stocks that I am watching because the prices appear to be good values. I have no position long or short in any of these companies.
1. Verizon (VZ)– Verizon is purely a dividend play for 2010. Growth will be tepid this year as the company’s landline business is shrinking. The growth for Verizon won’t come until 2011 when the telecommunications company is rumored to be adding Apple’s popular iPhone to its product offerings. According to the Wall Street Journal, “only 26% of the company’s annual-subscriber (retail) wireless customers held smartphonesor multimedia devices.” There is tremendous growth potential in selling smartphones and data plans to these customers.
2. Exxon Mobil (XOM) -At $64 a share the oil giant is falling into buy territory. The oil bubble seems to have burst but with global economies recovering oil demand should be on the rise. The recent acquisition of XTO gives Exxon more exposure to the natural gas sector. With the recent market drop investors will flock to solid large cap names with strong balance sheets like Exxon.
3. Goldman Sachs (GS) – I have learned from past experience to never bet against Goldman Sachs. Wall Street is expecting Goldman Sachs to earn anywhere from 17.50-18.75 per share for the current year which means the best investment bank in the world is selling for just 8 to 8.5 times 2010 earnings.
4. Apple (AAPL)– There may be a little more downside in Apple but not too much more. Shares have been punished relatively quickly. The stock has cooled dramatically from the $215 level just 10 days ago. The stock was due for a pullback sometime and maybe the market’s lukewarm response to the iPad was the reasoning. Either way shares look like a decent buy in the 180’s.