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Companies Any Investor Could Love

June 28, 2010 | Filed Under »
Tickers in this Article » AAPL, TMO, MSFT, XOM, QQQQ
Interested in buying what the analysts are pushing? Here are two stocks that possess near unanimous analyst "buy" ratings, and have avoided attracting any "sell" calls.

IN PICTURES: 8 Signs Of A Doomed Stock

But does that mean they're necessarily headed higher? Could it mean they've just been outperforming of late and possess a passing momentum? Or could they be potential short candidates? After all, consensus in the stock market can be a dangerous thing. As many contrarians will tell you, the best time to fade a stock or the market as a whole is when everyone's reached a consensus on it. So, are we there yet?

Take a Bite of This One - Everyone Else Is
Apple (Nasdaq:AAPL) recently overtook Microsoft (Nasdaq:MSFT) as America's second-biggest publicly owned company (the biggest is oil giant Exxon Mobil (NYSE:XOM)). With a market cap in excess of $246 billion, Apple also stands out as the single largest component on the Nasdaq 100 index, accounting for a full 20% of that entire index's value.

Year-to-date, Apple shares have gained more than 28%, and approximately 200% since last March's market bottom. In the last decade, that value of Apple shares has grown by nearly 950%, and since the company was founded 30 years ago, a mind boggling 7349%. To compare, the Nasdaq 100, as represented by the PowerShares QQQ Trust (Nasdaq:QQQQ), has remained stable year-to-date.

It's no wonder that the stock is given a "buy" rating by 93.8% of the 48 analysts who cover the stock and has not received any "sell" ratings.

Litigation to Undo the Gains?
Apple's recent price trajectory has been propelled by the enormous success of its new iPad and iPhone products. But the rise may be in jeopardy if a recently discovered security breach in the iPad leads to court action against the company. A proposed class action lawsuit against Apple and AT&T for the discontinuation of some unlimited iPad data plans also emerged last week.

Tied with Apple in the analyst recommendation department is Thermo Fisher Scientific (NYSE:TMO), a company with a $21 billion market cap that makes a variety of laboratory tools and other equipment used in the scientific field. Currently 93.8% of the analysts following the stock rate it a "buy".

The Wrap
Now that nearly all the analysts have recommended these two stocks, is there anyone out there who hasn't bought them? Could the last buyer be in? It's hard to say for sure, but keep in mind that there are times when too much of a good thing can be downright poisonous.

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