2. Apple (AAPL) sells consumer electronics.
The company's stock returned 53% in 2010, topping the large-cap tech category. Apple is a consensus pick for 2011. Of analysts covering Apple, 48, or 91%, advocate purchasing its shares and five recommend holding. None say to sell. Piper Jaffray has the highest price target, expecting a gain of 36% to $438. Goldman believes, contrary to some analysts, that the gross margin has bottomed and could climb in the near-term. Its $430 target is equivalent to 20-times its 2011 earnings per share estimate of $21.46.
1. Starbucks (SBUX) is Goldman's favorite pick within a restaurant industry that it believes has "the best supply/demand dynamics in 25 years." The number of U.S. restaurants has fallen to 1986 levels, following recession closings. According to Goldman, Starbucks is due to return 36% in 2011 on multiple expansion and steady earnings growth. The bank thinks the Street is underestimating same-store sales growth for the coffee chain, forecasting a 7% to 8% uptick in 2011. Emerging market expansion will add fuel to the fire, bolstering 2011 sales.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV