in case not posted yet .. 10 'Best Stocks' to Buy Now
By Jim Jubak Senior Markets Editor, MSN MoneyCentral
2/11/00 3:17 PM ET 'Buys' Right Now
To me, though, this analysis does suggest what kind of stocks might be "buys" right now in the 50 Best portfolio. A "buy" would be a stock that's depressed in price because investors are worried about the company's ability to grow in a slowing economy, but where the company has shown an ability to grow unit sales faster than the economy as a whole.
Take Dell Computer (DELL:Nasdaq - news), for example. The stock clearly is depressed in price. It has fallen 16% in the last month alone. But Dell is also growing faster than the economy and its own industry by taking market share away from competitors and by finding new markets to enter. The stock could decline a bit further on fears of an economic slowdown and on the bumpiness in its own transition to a 30% annual growth rate from the previous 60%. But I think the shares are now close enough to a bottom to make it a buy for long-term investors. Remember, as I explained in my last column, that calling the absolute bottom in price is relatively unimportant for the long-term investor.
What nine other stocks get a "buy" for a long-term investor right now? American International Group (AIG:NYSE - news), Citigroup (C:NYSE - news), Fannie Mae (FNM: NYSE - news), Home Depot (HD:NYSE - news), Lear (LEA:NYSE - news), MSN MoneyCentral publisher Microsoft (MSFT:Nasdaq - news), Pfizer (PFE:NYSE - news), Wal-Mart (WMT:NYSE - news) and MCI WorldCom (WCOM:Nasdaq - news). I think all of these may trend downward while the Fed is at work, but many already are trading near 52-week lows. (Fannie Mae is just about $4 a share above its 52-week low of $54.87.) For investors building a long-term portfolio, these stocks are worth a look at current prices |
