NEW YORK (TheStreet) -- MasterCard Inc. (MA), CF Industries Holdings (CF), Cabot Oil & Gas (COG), Newmont Mining (NEM), Google (GOOG), and Apple (AAPL) are S&P 500 stocks with mean return potential of up to 23%.
U.S. stocks rose Wednesday on the European Union's bank recapitalization plan and positive economic data. U.S. durable goods orders for September, excluding transportation equipment, rose highest in the last six months, while discounted prices increased new home purchases more than estimated during the same month.
In the last ten months, these six stocks averaged a mean 29% return, while the S&P 500 index delivered negative 1%. In comparison to broader indices and peers, these stocks gained on strong fundamentals. Their earnings are expected to grow at an average 30% to 35%. The buy rating for these stocks is 74%. We list them in ascending order of buy rating.
6. CF Industries Holdings (CF) is a leading manufacturer of fertilizer products specializing in the nitrogen- and phosphate-based segments.Net earnings during 2011 second quarter were $129 million compared to $66.7 million during the same quarter prior year. During the quarter, net sales totaled $199 million compared to $167 million in the corresponding period in 2010 due to higher selling prices for ammonia and urea ammonium nitrate solutions (UAN). Ammonia and UAN prices increased 48% and 47%, respectively, as sales volumes decreased year-on-year during the quarter. This price increase resulted from higher crop plantings in North America and global demand for nitrogen products. However, UAN and ammonia sales volume decreased 11% and 5% during this period, respectively. Cash and cash equivalents stood at $152 million vs. $125 million at the end of the 2010 June quarter. Gaining 33% in the last one year, the stock is trading at 7.5 times its estimated 2011 earnings. It has 15% upside over the next one year with 59% buy rating.
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