NEW YORK (
TheStreet) -- Net on the year, the
Dow Jones Industrial Average
(I:DJI) returned 6.2%, the
(SPX) returned 0.6%, and the
(COMPX) closed negative 1.0%. Relative to the broader indices, these six stocks posted impressive returns and are likely to return stronger gains in 2012.
The stocks identified have a minimum of $5 billion market cap and belong to sectors such as food retail, cable and satellite TV and consumer goods. According to data from
Bloomberg, the upside range is 11% to 90%, while average buy recommendation and hold guidance for these stocks is 64% and 31%, respectively.
The six stocks are listed in ascending order of upside potential.
Estee Lauder Companies
(EL - Get Report) is a manufacturer and marketer of quality skin care, makeup, fragrance and hair care products that are sold in 150 countries and territories. It is also the global licensee for fragrance and cosmetics. For fiscal year ended June 30, EL acquired the license to develop Ermenegildo Zegna products.
The company had year-to-date return of 41.7%. During the year, earnings per share grew 47.1%, while book value per share improved 35.25%. Net dividend per share increased 40%, according to data compiled by
and become a fan on
For the first quarter of fiscal 2012, the company reported net sales of $2.47 billion, up 18% from $2.09 billion in the same quarter previous year. Net income totaled $278.6 million, increasing 47% from $189.6 million in the same period 2010. Diluted earnings per share were $1.43 for the quarter, compared to 97 cents during the prior-year period.
Estee Lauder recently paid a dividend of $1.05 per share on outstanding Class A and Class B common stock. The company's board has declared a two-for-one common stock split to be effected in the form of a stock dividend. The additional shares will be issued on Jan. 20, 2012 to stockholders of record Jan. 4. Net sales are expected to increase by 8% to 10% in the second quarter. Diluted earnings per share are projected between $1.83 and $1.98.
To add to its fragrance collection, the company has announced a partnership with
for an exclusive worldwide license of some of the latter's signature products. Further, it will collaborate with
, an Italian fashion house, on some fragrance products.
Of the 19 analysts covering the stock, 58% recommend a buy and the rest rate it a hold. There are no sell ratings on the stock. Analysts polled by
foresee the stock gaining an average 11.4% to $127.33 in the upcoming 12 months.