Super Stocks for the Month

As a practical matter, buying individual stocks is riskier than owning a mutual fund, because the latter  spreads risk over dozens or hundreds of companies. However, buying individual stocks has its own advantages: On top of their expected price increases, many individual  stocks do pay strong dividends, which implies that  you will be earning money while you wait for them to appreciate in value. In this article, I conducted a quick research to recommend 7  stocks that could do very well over the next 2 years. 

My research is based on data I culled  from two companies with successful long-term records in the investment analysis business, namely Stock Scouter Inc. and Zacks Investment Research Incorporated. Based on this analysis I came up with the companies shown on the table  below. Note that, by using a system of advanced mathematics to determine a stock's expected risk and return rates, these  stocks were rated  from 1 to 10, with 10 being the best.  This values came from  comparing  the fundamental and technical qualities of stocks to measures that have proven statistically predictive of stock performance in the past.

Stocks: Top Picks For the Month

Company Name	Stock Scouter  Rating	Zacks Investment Recommendation for the Stock
1. Virgin Media Inc	10	Hold
2. Boeing Co	9	Moderate buy
3. CSX Corp	9	Hold
4. Direct TV	9	Moderate Buy
5. Goodyear Tire & Rubber	9	Hold
6. Exxon Mobile Corporation	-	Hold
7. Facebook Inc	4	Moderate Buy

Source: StockScouter Inc.; Zacks Investment Research Incorporated

The bottom line: If you have a specific  interest in a particular stock, it is advised to research it further or call your financial advisor and  broker to discuss the stock’s potential in terms of earnings and viability.

Key Terms

Moderate Buy = An analyst recommendation meaning a stock is expected to do slightly better than the market return. 

Hold = An analyst's recommendation to neither buy nor sell a security. A company with a hold recommendation generally is expected to perform with the market or at the same pace as comparable companies.