4. Lloyds Banking Group ( LYG) is a U.K.-based financial services company operating in the retail, wholesale, international banking and insurance segments. Pre-tax profit of 2010 beat analysts' estimates at $3.6 billion, compared with a $10.3 billion loss in 2009. Total income grew 3% to $38.9 billion, boosted by core business income, which grew 7% for the year. Though higher funding costs piled pressure, prudent lending improved net interest margin to 2.1% from 1.77% in 2009. The 45% reduction in impairment charge to $21.5 billion improved overall profitability. Lower operating expenses improved the cost-to-income ratio to 46.2%, compared with 50.7% in 2009. At the end of 2010, Tier 1 ratio was 11.6% and capital ratio was 15.2%. On average, analysts expect the stock to gain 71% over the next one year.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.