by Sam Collins
Pimco CEO Mohamed A. El-Erian, the world`s largest bond manager, made some incisive comments during a recent CNBC interview. With the European crisis now settled and Italy saved, he said, Greece has been sacrificed in order to build a firewall.
And, according to Riverfront Investment Group, The good news is that in contrast [to Europe], the U.S. economy is turning slowly. For the first time in 35 years, manufacturing employment is increasing faster than non-manufacturing employment.
The U.S. unemployment rate is falling and even existing home sales are increasing –the best sign that the housing market is showing signs of improvement.
From a technician`s viewpoint, the major indices have had difficulty breaking several psychological barriers, chiefly the Dow`s 13,000 line and the S&P 500`s May 2011 high at 1,371. But a lagging sector, the banks, has turned positive, and that could provide the push needed to break the logjam for the indices. In February, bank stocks led the other sectors, and on Feb. 27, advanced 1%.
On the defensive side, there is massive support under all of the markets, and so corrections are probably limited to no more than 3% to 5%. And on the positive side, breakouts could easily move the major indices 10% or more.
Here are your top stocks to buy for March:
Top Stock to Buy #1 CSX Corp. (CSX)
CSX Corp. (NYSE:CSX[1]) is the operator of the largest rail network in the easternUnited States. The stock is expected to be driven higher by an increase in foreign coal shipments and auto and international container shipments.
Profit margins are expected to rise in 2012 due to an increase in volume and productivity. And earnings are expected to increase from $1.35 in 2010 and $1.67 in 2011 to $1.85 in 2012. Credit Suisse sees steady growth ahead and has a target of $29 on the stock.
Technically the stock has been consolidating just under its 50-day moving average at $22. A break over $22 on high volume could catapult CSX to $27. (more)
No comments:
Post a Comment