6 Good Buys for a Portfolio

NEW YORK ( TheStreet) -- Net on the year, the Dow Jones Industrial Average ( I:DJI) returned 6.2%, the S&P 500 ( SPX) returned 0.6%, and the Nasdaq ( 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.

6. Estee Lauder Companies ( EL) 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 Bloomberg.

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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 Tory Burch for an exclusive worldwide license of some of the latter's signature products. Further, it will collaborate with Marni, 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 Bloomberg foresee the stock gaining an average 11.4% to $127.33 in the upcoming 12 months.

5. Whole Foods Market ( WFM) is a natural and organic foods supermarket with more than 311 stores in North America and the U.K.

The company recorded year-to-date return of 36.3%. During the year, earnings per share grew 35.2%, while book value per share increased by 21.2%, according to data compiled by Bloomberg. During fiscal 2011, sales increased 12.2% over the prior year. Income available to common shareholders increased 42.5%, while diluted earnings per share were up 35% over the prior year.

For the fourth quarter 2011, the company reported total sales at $2.35 billion, up 12.4% from $2.09 billion in the same quarter 2010. Net income for the quarter stood at $75.4 million, improving 31.1% from $57.5 million in the prior-year quarter. Diluted net earnings per share grew to 42 cents from 33 cents per common share. Recently, the company paid a quarterly dividend of 16.25 cents per share and has declared a quarterly dividend of 10 cents per share payable Jan. 24, 2012 to shareholders of record Jan. 13.

During the year, WFM opened 18 new stores and one-stop stores for all kosher items during the holiday season. The company has announced it will unveil a new store in central London's busy Soho area in 2012.

Of the 25 analysts covering the stock, 56% recommend a buy and 40% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 11.7% to $77.00 in the next 12 months.

4. DISH Network ( DISH), ranked 200 on the Fortune 500, is a pay-television provider serving approximately 13.945 million satellite TV customers. Subsidiary Blockbuster delivers family entertainment to millions of customers worldwide.

DISH has the highest year-to-date return of 57.9%. In the past one year, earnings per share grew 55.6%, while book value per share increased 45.3%, according to data compiled by Bloomberg. Revenue growth is 12.5% and net income improved 26.5%, year-to-date. At the end of the quarter, earnings per share increased to 71 cents from 56 cents, year-to-date.

For the quarter, DISH reported net revenue of $3.6 billion, up 12.3% from $3.21 billion in the same period previous year. Net income totaled $319 million, a growth of 30.3% compared to $245 million in the corresponding period last year. Diluted earnings per share were $0.71, vs. 55 cents in the 2010 quarter. The company recently paid a non-recurring dividend of $2.00 per share on outstanding Class A and Class B common stock.

During 2011, DISH reached a deal with LIN Media to restore local TV channels to customers in 17 markets. The company has acquired Blockbuster's assets in a transaction valued $238 million, aiming to deliver high-quality video entertainment to consumers.

Of the 21 analysts covering the stock, 52% recommend a buy and 38% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 12.1% to $32.06 in the upcoming 12 months.

3. Lululemon Athletica ( LULU), a designer and retailer of technical athletic apparel, operates in North America and Australia. It offers a range of performance apparel and accessories for youth and adults.

The company recorded year-to-date return of 42.2%. In the past year, earnings per share grew 107.2%, while book value per share increased 60.4%, as per data compiled by Bloomberg. Revenue grew 6.6%, year-to-date.

For the third quarter of fiscal 2011, net revenue increased 31% to $230.2 million from the 2010 quarter. Net income attributable to LULU was $38.8 million, or 27 cents per diluted share, compared to $25.7 million, or 18 cents per diluted share in the prior-year period. At the end of the quarter, the company had 165 stores in North America and Australia with comparable sales per square foot of $1,880.

Net revenue guidance for 2011 fourth quarter is in the range of $327 million to $332 million. Diluted earnings per share are pegged between 40 cents and 42 cents.

Of the 23 analysts covering the stock, 57% recommend a buy and 39% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 13.5% to $55.19 in the upcoming 12 months.

2. Herbalife ( HLF) sells weight-management, nutrition, and personal care products in more than 78 countries through a network of 2.5 million independent distributors.

The company has the second highest year-to-date return of 54.2%. In the past year, earnings per share grew 47%, while book value per share improved 38.6%. Net dividend growth was 61.1% during the year, as per data compiled by Bloomberg. Sales grew 21.2% and net income improved 33.3%, year-to-date.

For the third quarter 2011, net sales increased 30% to $895.2 million from $688.4 million in the same quarter previous year, while volume was up 23.4%. For the quarter, net income was reported at $108 million, or 87 cents per diluted share, compared to $78.8 million, or 60 cents, in the 2010 period. The company has paid a quarterly dividend of 20 cents.

Herbalife recently launched operations in Ghana -- its 39th market in Africa -- with a distribution center located in Accra. Earnings per share guidance for 2012 is in the range of $3.25 to $3.45.

Of the 11 analysts covering the stock, 91% recommend a buy and the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining an average 30.6% to $68.81 in the upcoming 12 months.

1. Green Mountain Coffee Roasters ( GMCR) engages in the specialty coffee and coffee making businesses.

The company has recorded year-to-date return of 37.9%. In the past year, earnings per share grew 126.7%, while book value per share increased 135.2%, according to data compiled by Bloomberg. Year-to-date revenue growth is 23.8%, while net income rose 3,327.3%. Earnings per share increased to 47 cents from 2 cents, year-to-date.

For the fourth quarter, net sales stood at $711.9 million, up 91% from the same quarter earlier year. Net income increased 179% to $75.4 million, while earnings per share surged 135% to 47 cents per diluted share. For fiscal year 2011, net sales and net income increased 95% and 151% from fiscal 2010 levels, respectively.

At the end of October, the company chose Virginia for its new manufacturing and distribution facility and intends to purchase a 330,000 square foot building for $15 million. It plans to invest nearly $180 million over the initial five years of the facility's operations.

For fiscal 2012, the company estimates consolidated net sales growth of 60% to 65%, while non-GAAP earnings per diluted share are seen in the range of $2.55 to $2.65. For the first quarter of fiscal 2012, consolidated net sales growth is projected between 85% and 90%.

Of the 13 analysts covering the stock, 69% recommend a buy and 15% rate a hold. Analysts polled by Bloomberg foresee the stock gaining an average 89.8% to $86.00 in the next 12 months.

>>To see these stocks in action, visit the 6 Good Buys for a Portfolio portfolio on Stockpickr.