AOL Money & Finance

Stock picks and pans for troubled times: CAT, MON, EL, ISRG, NTT, RIG, SIRI ...

Amazingly, this week is about to end with stock markets logging gains. Not grim earnings, not glum retail sales, not dismal car sales, nor even weaker-than-expected jobs report seemed able to put a dent in investors' hopes the stimulus bill would pass.

And it's not even the Dow stocks that are leading the advances. As of noon today, the Dow was up about 3% for the week, while the S&P 500 gained about 4.5% and the Nasdaq composite soared some 7%. If you're sorry you didn't take part of this rally, and think perhaps there's more to come after the Senate finally approves the stimulus plan, then BloggingStocks contributors have some ideas for long-term holdings, as well as a few warnings:

Costco, Inc. (NASDAQ: COST), Ford Motor Company (NYSE: F) and Caterpillar (NYSE: CAT) were three companies Doug McIntyre thought could stand a chance to rebound following a big selloff. Costco will only need one month of strong same-store sales. For Ford, a number of not so far-fetched things -- such as outperforming other car companies -- could make the stock price double. Caterpillar could get a boost from the stimulus plan. It is interesting to note that Sheldon Liber doesn't share the same opinion as far as Ford is concerned.

Monsanto (NYSE: MON) is the undisputed leader in the genetically modified (GM) seed industry and as the world population continues to grow, forecast to reach 9 billion by 2050, guarantees greater earnings growth and solid pricing power. The latest quarterly results proved it, says Yiannis Mostrous.

Estee Lauder Companies (NYSE: EL) reported decent earnings this week, but warned about this quarter's sales. Elizabeth Harrow examined her bullish call on this one and still thinks this one's a long-term winner barring short-term headwinds.

Intuitive Surgical Inc. (NASDAQ: ISRG) found its way to the rumor mill this week, as unconfirmed reports suggested Johnson and Johnson (NYSE: JNJ) could acquire it. Sheldon Liber, a long time bull on the stock, examined the rumor. He hopes that if there's truth to them the price would be fair and still believes this one is a long-term buy.

Nippon Telegraph and Telephone (NYSE: NTT) is one of three picks Peter Cohan wrote about as a Japan play. NTT reported earnings that showed two of its units are doing remarkably well. With a P/E of 7, the stock looks inexpensive.

Transocean (NYSE RIG) is the owner of the world's biggest fleet of offshore drilling rigs. With good operating performance and future prospects, as well as strong fundamentals, Wall Street's recent punishment seems unwarranted and perhaps allows for a good opportunity in, says Richard Moroney.

Avon Products (NYSE: AVP) was a stock highlighted here only last week. Low and behold, Avon reported beautiful earnings. Even if you missed this week's runup in the stock price, the yield alone still makes it interesting, not to mention its long-term prospects.

If you happened to miss last weekend's feature, Five winning Super Bowl trades, here's a chance to take another look at some ideas, including U.S. Steel (NYSE: X) and MGM Mirage (NYSE: MGM).

There were a few more stocks our bloggers thought could be a buy, but here are also some they'd stay away from:

Sirius XM (NASDAQ: SIRI) is best avoided, according to Doug McIntyre, as it seems to be not far off from Chapter 11.

Huntington Bancshares (NASDAQ: HBAN) may have a large short position, which could propel the stock higher, Elizabeth Harrow says, but she warns "the shares to stage any kind of significant comeback rally during the short term."

Harley Davidson (NYSE: HOG) -- to follow or not to follow Buffett into this one? Peter Cohan believes the terms of the deal themselves show how desperate Harley is, and how risky. So while it may be great for Buffett, no so for the individual investor.

Dell, Inc. (NASDAQ: DELL) may be in better shape two years after Michael Dell has returned to the top job at the company, but is it enough? Brian White doubts it is, and Doug McIntyre agrees, especially following Lenovo's reported loss.
Get the latest on cars and trucks
from Ford and all brands at AOL Autos.

Reader Comments (Page 1 of 1)

Symbol Lookup
IndexesChangePrice
DJIA+29.4010,463.11
NASDAQ+7.632,176.81
S&P 500+4.501,110.15

Last updated: November 25, 2009: 02:53 PM

BloggingStocks Exclusives

Hot Stocks

Learn More About Ford Cars

Find Your Next Car

AOL Autos New Cars and Used Cars

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines