Quickel's Picks: Five New Ideas

12/05/2016 10:00 am EST

Focus: STOCKS

Stephen Quickel

Editor, US Investment Report

The U.S. economy is still the world’s greatest and in its best shape since the 2006-08 Great Recession and Financial Crisis, asserts Stephen Quickel, editor of US Investment Report.

With the post-election rally lifting the major averages back to their 10-week moving averages, it is time to begin reinvesting some of the idle cash in our model portfolios.

Here's a look at some of the stock we have added to our recommended list. They all offer average earnings growth twice the 9.5% of the S&P 500 universe. Here in a nutshell is what we like most about them:

Priceline (PCLN)

The dominant online travel agency upped third-quarter revenues 44% and has projected a large fourth-quarter increase in room-day bookings.

This prompted three analysts to raise their earnings estimates and lift target prices to as high as $1850.

Jazz Pharmaceutical (JAZZ)

Aided by stock buybacks and successful new drugs, third quarter earnings beat estimates with the stock rising for $97 to $114 and headed to a $177 target.

This big winner for us in recent years traded as high as $150 before profit-taking knocked it for a loop last summer.

Toll Brothers (TOL)

The leading U.S. luxury homebuilder, Toll has recently made a strategic acquisition amid an industry-wide consolidation trend.

This has bolstered its marketing clout with a significant addition to its in-house mortgage financing warehouse facility. It P/E and price-to-earnings growth (PEG) ratios are quite attractive.

Western Digital (WDC)

New cloud and mobility applications in hard drives and flash-based products have enabled this information technology leader to push first-quarter fiscal 2017 earnings far above Street expectations — exceeding even its own guidance.

Visa (V)

Never mind the elevated 1.30 PEG. This credit card leader is rolling ahead at a high-teens percentage earnings clip like a sprightly small cap, with huge institutional buying support.

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By Stephen Quickel, Editor of US Investment Report

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