10 Reasons Bank Stocks Can Keep Outperforming

Are the 4 Cheapest Dow Stocks Really Good Bargains?





More reasoning behind the call is that the Merrill Lynch team feels that multiple expansion can continue from relatively levels now, and the steepening yield curve will continue to buoy these stocks. In the 1990s, nearly 80% of the rally from trough occurred in the second half of an eight-year recovery. In this current mid-cycle, we think there is further material upside in banks, as higher rates (especially from historical lows) and stronger loan growth replace M&A as the catalyst this time around. A summary of the 10 reasons that bank stocks can keep outperforming is as follows: 1. Source: http://www.usatoday.com/story/money/markets/2014/01/11/10-reasons-bank-stocks-can-keep-outperforming-in-2014/4396677/





U.S. Stocks Rise as Jobs Data Fuels Optimism of Stimulus





Oil prices have remained relatively high, but even slight deterioration in energy prices has hurt Chevron's profit potential. It'll take huge amounts of effort for Chevron just to maintain production levels, let alone grow them. That makes Chevron's valuation a bit more justified than some other cheap stocks. IBM trades at 10.6 times projections for forward earnings, and even though the tech giant has suffered from falling revenue levels lately, so far, they haven't translated into a drop in earnings per share. Immense buybacks have played a big role in boosting earnings projections, with Big Blue still seeking $20 in earnings per share by 2015. Source: http://www.fool.com/investing/general/2014/01/11/are-the-4-cheapest-dow-stocks-really-good-bargains.aspx











"People are hoping this is an anomaly, and it seems like it was related to the weather, but if it is a trend, then that is a real threat to GDP and corporate earnings growth." With the earnings season under way, shares of Alcoa Inc fell 5.4 percent to $10.11 a day after the company reported a massive quarterly loss. Alcoa's results were hurt by recent declines in aluminum prices and a non-cash impairment charge on smelter acquisitions. The pace of companies reporting earnings is expected to pick up in the following week, when a number of banks report their quarterly and full-year results. "Macro has been trumping everything for a best buy stock while, and certainly Washington has been very important, but the spotlight goes on corporate earnings next week," said Phil Orlando, chief equity market strategist of Federated Investors in New York. Source: http://www.reuters.com/article/2014/01/10/markets-usa-stocks-idUSL2N0KK2GM20140110?type=companyNews&feedType=RSS





US STOCKS-S&P ends up, led by defensive stocks; earnings in play





The figure represents the first positive monthly net inflows since April 2011. Optimism is high. According to a recent survey by the American Association of Individual Investors, 48% of those polled said they were bullish on the stock market. That's well above the long-term average of 39%. It remains to be seen, however, whether the wave of investors returning to stocks will become a groundswell. Source: http://www.kiplinger.com/article/investing/T052-C000-S002-love-stocks-again.html





How to Learn to Love Stocks Again





The fourth quarter will probably be quite disparate. You can see that retailers who have done well with online sales are reporting better holiday results, but others probably had a terrible quarter. Homebuilders Rally JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group Inc. will all report quarterly results next week. The Chicago Board Options Exchange Volatility Index (VIX) , the gauge of S&P 500 options known as the VIX, lost 5.8 percent to 12.14 today. Source: http://www.bloomberg.com/news/2014-01-10/u-s-stock-index-futures-rise-before-jobs-data-gap-gains.html





Cheap Stocks for 2014: The Best Buys in Defense Companies





Last week, if you recall, we took a look at valuations in the defense sector. However, we soon came to the disappointing realization that after turning in a very strong performance in 2013, there are very few true " value stocks " remaining among defense stocks. Huntington Ingalls (NYSE: HII ) probably qualifies, based on its 20 P/E ratio, strong free cash flow, and industry-leading anticipated growth rate of 27%. But subpar, single-digit growth projections at defense contractors like General Dynamics (NYSE: GD ) , Lockheed Martin (NYSE: LMT ) , and Northrop Grumman (NYSE: NOC ) appear to knock all of these companies out of contention as "bargain" candidates. Source: http://www.fool.com/investing/general/2014/01/11/cheap-stocks-for-2014-the-best-buys-in-defense-com.aspx