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!

Four Investing Themes to Watch in 2011

The stock has been a monster this year, but the company's strong restructuring effort has yielded impressive operating leverage, which will lead to higher earnings than analysts expect - -- I believe the company can post $8 a share next year, making this still a cheap stock.

Aerospace: In aerospace, the best play is Boeing (BA), the dominant U.S. company in the sector. Not only will BA gain from growing demand (and financially healthier customers), but the company will also benefit from the eventual launch of its 787 Dreamliner airplane --- the world's largest and most efficient wide- body aircraft. Although the plane has seen several delays, it will likely be delivered in 2011. In 2012, research-and-development costs will decline and margins will improve, providing significant earnings power to the company for years to come.

Technology: The cheapest way to play the data center and storage market is through EMC, the largest name in the industry. EMC's full suite of data-center products -- hardware, software and services -- makes it the vendor of choice in the industry because it offers a total solution for its customers, - and its portfolio just expanded with the acquisition of Isilon. It also has an 80% stake in the hottest server virtualization company in the game, VMware (VMW). EMC is poised for double -digit earnings and revenues growth next year, and excluding the cash and the VMW stake, the stock trades at seven times earnings (below its long-term average of 9.6 times).

Another cheap technology play with positive catalysts is Oracle (ORCL) -- it plans to launch two new products next year as it integrates the recent Sun Microsystems acquisition.

Financials: Other ideas we like are the deep -value financials. Our favorite is American Express (AXP), which is trading at 12 times earnings for a company poised to deliver double -digit earnings growth. The company should benefit from an improving credit cost cycle (that has just begun) and the return of the consumer and business customer.

-- Written by Stephanie Link, director of research & vice president of strategy for TheStreet.

Readers Also Like:

Stephanie Link is the director of research & vice president of strategy for TheStreet.com. She is the co-portfolio manager for Jim Cramer's premium investing service, Action Alerts PLUS and works daily on the strategy and stock picks chosen for the portfolio. Stephanie is also responsible for recruiting talent for the paid sites including options, technicians and fundamental contributors. Prior to joining TheStreet.com, Link worked on Wall Street for 16 years. She spent nine years at the Prudential Equity Group as a managing director in U.S. institutional sales and as the New York sales manager covering top national accounts. She was the managing director of equity research in her final year at the firm. Prior to that position, she worked at Dean Witter as an institutional sales person for six years. Link's investment specialties include large-cap core stocks as well as value ideas.
2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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