Thursday, September 2, 2010

4 Stocks For An Uncertain Market

Contrary to popular belief, it is not bad news that Wall Street hates. Professional analysts and investors are reasonably adept at processing bad news, applying whatever bloodletting a stock needs and then moving on to the next idea. It is uncertainty that gums up the works more than anything else, as it produces so many open avenues and so few definitive answers. 

More than anything, it seems that it is the uncertainty about the economy that is weighing on stocks and stirring up volatility. A bad housing report here or a bad payroll number there and screens are flashing red for the entire day, only to rebound to green tomorrow when another piece of data reverses yesterday's bad mood.

With no clear trend to follow, here are a few ideas for investors looking to stay in the market but sidestep a little of the craziness. 

Abbott Labs  
Abbott Labs (NYSE:ABT) is a popular name, and with good reason. The company is diversified across drugs, diagnostics and devices, and management has been adept at delivering solid returns on invested capital. Healthcare has already taken its lumps, but Abbott looks poised to deliver years of high-single digit revenue growth, double-digit cash flow growth and solid returns for patient investors who can also collect a dividend along the way. (For more, see Spot Quality With ROIC)

To access the complete article, please click on the link below:
http://stocks.investopedia.com/stock-analysis/2010/4-Stocks-For-An-Uncertain-Market-ABT-CPB-CA-TEVA0902.aspx

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