The beginning of 2008 has been horrible for the stock markets all around the world. The economic news is not encouraging and on the television every day all we hear is gloom and doom. I agree that the environment is extremely difficult and most stocks are probably not yet at their bottom. The problem is, there will be no horn that goes off when we hit the bottom, and most people won't know we hit bottom until long afterwards. Since this is the case I decided to put together a list of 10 stocks that have long-term capital appreciation potential that I believe makes them look like an attractive buy even if they do go a little lower in the short run.
- Textron (NYSE:TXT) Textron has delivered amazing earnings growth of late and up until the last month the stock was doing beautifully. In the last 15 trading days, TXT stock has taken a stunning fall from $74 per share, to a current level of $53.50. It seems this stock has turned into an impressive value very quickly.
- Chicago Bridge and Iron (NYSE:CBI) CBI has been consistently beating estimates of late on strong infrastructure and oil and gas results. Shares have sold off hard of late and the stock now carries an attractive PEG ratio of just 1.09.
- eBay (Nasdaq:EBAY) It is actually quite surprising to myself that I include this name because it hadn't been a favorite of mine for a while, but I'm starting to think people are undervaluing the long-term value of its business. eBay may seem some short-term hits, but it will be around a long time.
- Goldman Sachs (NYSE:GS) I know this is a difficult one to call since brokers are so hated right now, but you can't argue with the results GS has been showing. GS is the clear cream of the crop in the investment banking world, and over time the shares will appreciate nicely.
- Transocean (NYSE:RIG) Transocean is the premier deepwater driller in the world. The company has great pricing power right now, and I don't believe the demand for oil is going to be dropping anytime soon. Shares have fallen 20 quick points from their all-time high set less than a month ago.
- Monsanto Company (NYSE:MON) I believe this company is ahead of the curve and has some products that will be huge in the coming years. The agricultural bull market is still in full swing, and the 20% plus decline in the past week could prove to be a gift in the intermediate future.
- United Health Group (NYSE:UNH) This is a great company that should do well no matter the economic environment. The stock was out of favor for some time because of the negative press surrounding the options scandal of its former CEO, but the PEG here is just 1.04 and the company continues to beat estimates nearly every quarter.
- VF Corporation (NYSE:VFC) One has to be impressed with the product portfolio this company has put together, and despite other retailers slashing estimates this company just continues to grow faster than expected. This might well be an opportunity to buy this name because of guilt by association trading in the market.
- Deere and Company (NYSE:DE) This is another company profiting very nicely from the agriculture boom. The stock lost a stunning 20% in the past four trading sessions. I don't think the growth prospects have changed to warrant this kind of decline in Deere shares.
- IntercontinentalExchange (NYSE:ICE) ICE shares have been beaten up along with other exchanges of late, but futures and OTC markets growth should continue and ICE is in a great position to benefit over the long-term.
*Please use this list as a starting place in your own research for stocks to buy in your portfolio*
*In the interest of full discloure, as of the time of this writing, the author had shares in RIG and CBI*
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