This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Technically speaking, World Fuel Services (NYSE: INT) is a stock that has shown incredible strength by outperforming the broad market," says Bernie Schaeffer, who chooses the issue as his top pick for 2009.
In his top-notch trading and investing service, Schaeffer's Investment Research, he looks at the company, which provides fueling services to marine vessels in some 1,000 seaports.
"The company estimates it holds more than 10% of the global marine fuels market. It also provides 24-hour fueling service to aircraft at 1,500 airports in more than 160 countries.
"Its aviation fueling business focuses on serving small to medium-sized air carriers, cargo and charter carriers, and private aircraft. World Fuel Services also markets fuel and related services to petroleum distributors operating in the land transportation market.
"On November 6, the company reported third-quarter non-GAAP earnings of $1.49 per share, excluding non-recurring items. The results easily topped analyst expectations for a profit of 57 cents per share.
"Revenue rose 51.2% on a year-over-year basis to $5.46 billion versus the $4.54 billion consensus estimate. As a result of the positive report, the stock surged more than 29%. This was the fourth consecutive quarter the company exceeded earnings expectations and we look for this trend to continue in 2009.
"INT is up 29% in 2008, while the S&P 500 Index is down 38%. Also, the stock broke an intermediate-term downward sloping trendline connecting its 2007 highs. This shows the stock has changed from moving lower to trending higher, a good sign heading into 2009.
"Meanwhile, we look for countertrend sentiment on technical and fundamental outperformers as evidence that the trend is in its early stages. There is quite a bit of pessimism surrounding INT.
"First, short-term option traders are currently aligned more toward puts than at any time in the last year. An unwinding of this pessimistic sentiment could provide the catalyst for a continued rally.
"Brokerage firms on Wall Street have yet to catch on to INT's uptrend. Only four analysts currently cover the stock, according to Thomson/First Call. Positive coverage initiations could propel the equity even higher."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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