This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Stocks That Could Rebound in 2011

Stocks in this article: TLBCHRSCWTRMDTSWN

Charming Shoppes also suffers from poor merchandising and found itself stuck with too much inventory, which the company is addressing. Furthermore, Charming Shoppes is going to have to focus on its private label credit card program which is experiencing declining revenues and returns. This company is now on the hands of a new chief operating officer, and the board is conducting a search for a new chief executive officer.

All of these problems, especially the merchandising issues, will take some time to fix. I am not saying that all three of these stocks will rebound in 2010, but, as a group, I am expecting a rebound. If you were to play this theme, I would do so as a package of all three names, a field bet of sorts.

Talbots is a major holding of Trafelet Capital Management, as of the most recent reporting period, and Robert Rodriguez of FPA Capital has a position in Charming Shoppes.

Medtronic

One stock that I didn't include as one of my health care stocks to consider was Medtronic (MDT), which manufactures and distributes medical devices and equipment. In 2010, the company faced some issues of concern for shareholders.

Medtronic, which has been fighting the FDA over approval of a new medical device, the CoreValve System, received some good news recently from the regulatory agency. The FDA granted conditional approval to Medtronic for a revised design trial study.

Chairman and CEO William Hawkins is expected to retire in April, and the board has initiated a search for his replacement. No reason was given for his decision.

In addition, the company completed the takeover of blood pressure treatment company Ardian earlier this month. The acquisition is expected to be dilutive by 2 cents in its fiscal fourth quarter ending April 2011 and by 5 cents to 6 cents in fiscal 2012.

All of these issues weighed on the stock in 2010, which ended the year down nearly 16%. But as 2011 unfolds, I see the potential for a stock rebound. Medtronic's products will be in ever-increasing demand as baby boomers -- and our population in general -- age. For its fiscal year ended April 2011, earnings are expected to grow by 5%. In the following year, earnings should grow by about 7%. The stock pays a dividend of 2.5%. The balance sheet isn't great, but it's good, with long-term debt of about $10.55 billion only partially offset by cash and short-term investments of about $3.54 billion and long-term investments of about $5.45 billion.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • 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