This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Biggest, Best Companies Across World

Stocks in this article: AAPL VALE SINA

NEW YORK ( TheStreet) -- U.S. stocks rose yesterday, snapping six days of losses, on signs the service sector is growing.

The Institute for Supply Management's gauge of service industries, which collectively account for the largest part of the U.S. economy, lifted stocks, leading to the highest close since May.

Still, unemployment remains widespread and is estimated by economists to average more than 9% through next year. The upcoming earnings-release season -- kicked off by Alcoa (AA) on Thursday -- is giving some investors pause as some are awaiting clearer signs the economy won't fall into a recession.

Corporate earnings are expected by analysts to accelerate in the current quarter from the three months through September. Analysts forecast that S&P 500 earnings increased 23% in the third quarter and will quicken to 31% in the fourth quarter.

Below are five stocks that are among the most highly rated in their respective industries and countries. They are based in the U.S., Brazil, Germany, China and India. If executives at those companies -- all of them bellwethers -- provide bullish outlooks, their share prices probably will follow.

1. Apple (AAPL): Apple, the maker of computer and electronic devices, is seeing sales jump due to the popularity of its iPad tablet and iPhone.

Analysts estimates call for revenue growth of 74% this year, to $63.4 billion, and 117% in 2011, to $79.2 billion. They expect earnings per share this year of $14.45, a 130% rise over 2009, and $17.62 in 2011, a 22% increase.

Apple's net operating margin of 20.7% is the highest among the 34 companies in the computer hardware maker sector.

Shares are up 34% so far this year, and hit a 52-week high last week, versus its peer group's 1.7%.

Conservatively managed, Apple has no long-term debt and held $24.3 billion in cash at the end of the second quarter, or $26.59 per share.

Apple's price-to-earnings ratio is 21.6, versus 34.2 for its peer group, suggesting the shares are selling at a discount.

Of analysts covering Apple, 47, or 94%, advise purchasing its shares and three advise holding them. None rate the stock "sell." A median price target of $342.81 suggests a return of 19% in the next 12 months. JPMorgan offers a price target of $400, implying 38% of upside.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,051.82 -1.89 -0.01%
S&P 500 2,086.97 -1.80 -0.09%
NASDAQ 4,801.1570 -5.7020 -0.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs