Projected 2013 Earnings Growth:
From James K. Glassman
Two years ago, I started a new tradition: picking a stock myself. In both years, it was iShares MSCI Brazil Index, an exchange-traded fund that tracks the Brazilian stock market. It bombed twice, and I am not going to that well again. I’m picking Ford Motor (symbol: F
), whose heroic CEO, Alan Mulally, turned down bailout money and guided the business through tough times to 13 straight quarters of pretax profitability, including surprisingly strong earnings of $1.6 billion in the third quarter of 2012. Ford still has room to grow. Despite the firm's achievements, the stock has dropped 40% since early 2011, and the P/E is 8. The P/E is low because investors apparently don't believe that Ford can sustain those high profits. I think they're wrong and believe that Ford deserves a higher valuation.
18. Ford Motor Company