12/18/13
Looking for high potential stocks to put in your portfolio stocking for Christmas? Look no further than the retail sector.
In our research at billionairesportfolio.com we follow the moves of billionaire investors, and we tend to find them frequently involved in stocks that are beaten down and in need of a turnaround
Why do they like these stocks? Because these situations tend to have the following attributes: 1) the potential to return 100% or more inside of one year, 2) a catalyst present that can spark momentum in a stock, and 3) Wall Street sponsorship. And given the track records of the rich, influential investors that we follow, that proves to be a formula for consistent, market-beating success.
For the first time in a long time, expectations are for solid economic growth in the coming year (close to 3%). Right now, we are finding more and more names hitting our radar screen from the retail sector. Plus, given the trend of better data in the U.S., there’s a good chance we could see a positive surprise to that 3% growth number. Faster growth will improve the job market, improve confidence and bolster consumer spending. In this scenario, retail stocks will be among the biggest beneficiaries.
With this in mind, we ran the following screen on stocks in the retail sector, to find stocks that analysts think can double in the price in the next year. This screen can give us a starting point for identifying a situation where a billionaire investor is involved and pushing for a turnaround.
Here they are:
1) Wet Seal (WTSL) has a current share price of $2.58. The consensus analyst target price is $5.50. That gives us a “street projected return” of 113%.
2) Pacific Sunwear of California
(PSUN) has a current share price of $3.20. The consensus analyst target price is $6.50. That gives us a “street projected return” of 103%.
3) J.C. Penney (JCP) has a current share price of $8.32. The consensus analyst target price is $18. That gives us a “street projected return” of 116%.
4) Francesca’s Holdings (FRAN) has a current share price of $17.64. The consensus analyst target price is $36. That gives us a “street projected return” of 104%.
5) American Apparel (APP) has a current share price of $1.05. The consensus analyst target price is $2.50. That gives us a “street projected return” of 138%.
To learn more about high potential stocks owned by billionaire investors you can follow us at billionairesportfolio.com.
Will Meade
President of The Billionaires Portfolio
Providing Sophisticated Hedge Fund Strategies and Analysis For The Everyday Investor