Wall Street's top strategists have been unveiling their 2014 S&P 500 year end forecasts. Calls range from bold and ballsy to reluctant and conservative.
They see the S&P 500 ending 2014 slightly lower to up as much as 20% from yesterday's close of 1,254. Earnings are expected to be flat to up around 10%. Most see modest GDP growth in the U.S., and many expect more quantitative easing from the Fed.
However, all warn that Europe remains a wild card. Most assume a eurozone recession in their base case scenario. But should Europe's debt crisis escalate and contagion ensue, all bets are off and stocks will tank. Then again, if the crisis is contained, then most would argue that the sky's the limit.
We've written before that our favorite line came from Nomura's 2014 Global Strategy Outlook:
Putting things bluntly, either we have another very serious credit event with consequences at least as severe as the Lehman Brothers bankruptcy, or stocks are probably a buy.
Anyway, we read through hundreds of pages of research published by 16 of Wall Street's very best. Here's a summary of their 2014 forecasts:
Best Stocks In 2014:Siemens AG (SI)Siemens Aktiengesellschaft, an electronics and electrical engineering company, operates in the industry, energy, and healthcare sectors worldwide. In the industry sector, the company?s portfolio ranges from industry automation and drives products and services to building, lighting, and mobility solutions and services, as well as includes system integration and solutions for plant business. It offers automation and drives, industrial solutions and services, transportation systems, and Siemens building technologies. In the energy sector, Siemens provides solutions for the generation, transmission, and distribution of power; and extraction, conversion, and transport of oil and gas in the oil and gas industry. In the healthcare sector, it develops, manufactures, and markets diagnostic and therapeutic systems, devices, and consumables; and offers IT systems for clinical and administrative purposes. The company also provides technical maintenance, professional, consulting, and financing services. In addition, Siemens provides financial products and services, such as commercial finance, equity and project finance, treasury and investment management, and project and export finance. Additionally, the company offers insurance solutions, such as claims management; and acts as a broker of company-financed insurances, as well as engages in real estate business. It also has equity investments in a telecommunications infrastructure supplier, household appliance, defense technology, and communication and entertainment device companies, as well as in companies that provide technical building equipment and installation services; and open communications, network, and security solutions. The company was founded in 1847 and is headquartered in Munich, Germany.
Best Stocks In 2014:Deswell Industries Inc. (DSWL)Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.
Best Stocks In 2014:Crown Crafts Inc. (CRWS)Crown Crafts, Inc., through its subsidiaries, offers infant and toddler products primarily in the United States. Its products include crib and toddler bedding, blankets, nursery accessories, room d�cor, burp cloths, bathing accessories, disposable placemats, toilet seat covers and changing mats, and other soft goods, as well as disposable and reusable bibs, and floor mats. The company offers its products to retailers, mass merchants, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, Internet accounts, wholesale clubs, and catalog retailers. It sells its products through sales force, independent commissioned sales representatives, and distributors. The company was founded in 1957 and is headquartered in Gonzales, Louisiana.
Best Stocks In 2014:NTT DOCOMO Inc (DCM)NTT DOCOMO, Inc. provides wireless telecommunications services, packet communications services, and satellite mobile communications services in Japan. It offers wireless voice and data communication services, such as second generation (2G) and third generation (3G) cellular services, and mobile multimedia services. The company provides mova services, on the 2G network, compatible with voice and data communication; FOMA services, on its 3G network, with voice and high-speed data communication, which are compatible with various services, such as videophone and video content downloading; and i-mode services, which are wireless Internet access services. As of March 31, 2010, it had approximately 56.08 million cellular subscribers. NTT DOCOMO also offers packet communications services, such as wireless data communications services using packet switching; satellite mobile communication services for communications in case of emergencies; and international calling and international roaming services. In addition, the company provides mopera U Internet connection services for data cards and smartphones; embedded modules for automobile fleet management, wireless credit card settlement systems, and telemetric systems for automatic inventory checks between vending machines and service centers; and MyArea services that offer high-speed packet communication services for homes. Further, it offers home shopping services through TV media, high-speed Internet connection services for hotel facilities, advertisement services, and credit services, as well as develops, sells, and maintains IT systems. The company was formerly known as NTT Mobile Communications Network, Inc. and changed its name to NTT DOCOMO, Inc. in April 2000. NTT DOCOMO was founded in 1991 and is based in Tokyo, Japan. NTT DOCOMO, Inc. operates as a subsidiary of Nippon Telegraph and Telephone Corporation.
- By Hesler At 2011-9-26
Japan’s largest wireless telecom operator has a 49% m! arket sh are, holds $11 billion in cash, and pays a 3.2% dividend. Need I say more? Okay I will. It’s free cash flow if very strong and the company is reasonably valued at 11 times forward earnings and less than five times cash flow.
The company is a technological leader, being the first to roll out a high-speed third-generation (3G) network. In December 2010, it began offering long-term evolution (LTE) 4G broadband services, which have much higher profit margins than basic voice service. Phone service is recession-resistant as Japanese loves to talk. The company is also benefitting from the strong growth in emerging markets because it owns a 27% stake in India’s fourth-largest wireless operator (Tata Teleservices).