5 Stock Picks For Next Quarter
This has been a momumental run on stocks from January to now. So what comes next? I'm highlighting 5 stocks that I think have a good chance to outperform from April to the end of June.
$GMCR - Momentum Trade (Price Target: $66/share) Green Mountain Coffee Roasters has been a roller coaster over the past 2 years. It peaked over $100/share in the 2nd half of 2011, and spent practically all of 2012 in consolidation mode. But GMCR has tripled since reporting earnings in November in what could be considered the biggest short-squeeze of 2013 so far. Earnings growth is likely to continue into 201, and I consider GMCR a great momentum trade for the next 3 months at least.
$CSX - Fundamentals Trade (Price Target: $30/share) CSX stock has been a trainwreck since splitting in 2011. This is mostly due to lighter than expected coal demand worldwide. The company has been transitioning from transporting coal to silica sand (used in natural gas fracking), and is well positioned for an upward surprise should China demand grow faster than expected.
$VPRT - Technical Trade (Price Target: $48/share) Vistaprint is a company that has seen significant insider buys this month around $35/share. This should provide a mid-term floor for this very heavily shorted stock. VPRT has some technical tailwinds which could contribute to a short-squeeze over the next 3 months.
$DWA - Rebound Trade (Price Target: $25/share) Dreamworks hasn't produced on it's big titles the past few years, and in turn is down almost 50% over the last 18 months. The summer is always a seasonably strong time for DWA and this summers lineup has more potential than 2012.
$EMC - Bull Market Trade (Price Target: $29/share) If this bull market is going to continue, it's going to need some laggards to start leading. EMC has underperformed the major markets this quarter. As of today, it's up only 3-4% from Jan. 1. If we see the S&P break above their all-time highs for another leg forward, EMC has potential to help lead the rally.
Today's current prices:
GMCR - $55.38/share
CSX - $24.07/share
VPRT - $39.44/share
DWA - $19.31/share
EMC - $23.96/share