The stock market has had trouble building on yesterday's record high, as mixed economic data and earnings reports have made investors question their bullishness. As of 1:15 p.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI ) is down 35 points, or 0.23%, owing almost entirely to a 7% plunge in the price of Boeing shares after reports of a fire aboard one of the manufacturer's 787 Dreamliner aircraft at London's Heathrow Airport raised concerns that the aircraft maker may not have solved its battery problems after all.
Still, the financial sector has remained a bastion of relative strength today, with the Dow's financial stocks performing quite well. Yet while JPMorgan Chase reported an impressive earnings beat this morning, the rest of the financials are actually outperforming the big bank. Traditional banking rival Bank of America (NYSE: BAC ) is up 1.6% as shareholders look ahead to the bank's own quarterly report next Wednesday. The stock has already produced dramatic gains in the past year and a half, and despite having strong capital ratios that put it ahead of many of its peers, B of A will have to work hard to meet its goal of improving its standing in the home-mortgage lending market. Favorable mortgage results from JPMorgan suggest that rising interest rates won't necessarily prevent B of A from raising its lending profile, but they do set the bar higher for B of A to post sufficient growth to improve its market share.
Top 5 Performing Stocks To Buy For 2014: CVS Corporation(CVS)
CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.
Top 5 Performing Stocks To Buy For 2014: Yadkin Valley Financial Corporation(YAVY)
Yadkin Valley Financial Corporation operates as the holding company for Yadkin Valley Bank and Trust Company that provides consumer and commercial banking services in North Carolina and South Carolina. The company accepts various deposit products that include demand deposits, checking and savings accounts, money market accounts, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises commercial, financial, and agricultural loans; construction, land development, and other land loans; real estate- 1-4 family mortgage loans; real estate- commercial and other loans; home equity lines of credit; installment loans to individuals; and other loans. In addition, the company offers mortgage brokerage services, investment services, and insurance services, as well as act as a trustee on real estate loans. It operates 38 full-service banking offices. The company was founded in 1968 and is headquartered in Elkin, North Carolina.
Top 10 Blue Chip Stocks To Invest In 2014: Automatic Data Processing Inc.(ADP)
Automatic Data Processing, Inc. provides technology-based outsourcing solutions to employers, and vehicle retailers and manufacturers worldwide. It operates in three segments: Employer Services, Professional Employer Organization Services, and Dealer Services. The Employer Services segment offers a range of human resource (HR)information, payroll processing, and tax and benefits administration solutions and services, including traditional and Web-based outsourcing solutions. Its solutions enable employers to staff, manage, pay, and retain their employees. The Professional Employer Organization Services segment provides employment administration outsourcing solutions, including payroll, payroll tax filing, HR guidance, 401(k) plan administration, benefits administration, compliance services, health and workers? compensation coverage, and other supplemental benefits for employees. The Dealer Services segment offers integrated dealer management systems (DMS) and other busines s management solutions to automotive, truck, motorcycle, marine, recreational vehicle, and heavy machinery retailers. This segment also provides a suite of additional integrated applications to address department and functional area of the dealership, including customer relationship management applications, front-end sales and marketing/advertising solutions, and an IP Telephony phone system integrated into the DMS to help dealerships drive sales processes and business development initiatives, as well as offers computer hardware, hardware maintenance services, software support, system design, and network consulting services. In addition, it designs, establishes, and maintains communications networks for its dealership clients that allow interactive communications among various site locations, as well as links between franchised dealers and their vehicle manufacturer franchisors. The company was founded in 1949 and is headquartered in Roseland, New Jersey.
Advisors' Opinion:- [By Lowell]
ADP offers a range of human resource (HR), payroll, tax and benefits administration solutions to its clients in United States, Canada, Europe, South America (primarily Brazil), Australia and Asia. As of June 30, 2010, the company had 520,000 clients listed for its employer based services such as processing the payroll for their employees. Payroll services include the preparation of client employee paychecks, electronic direct deposits and stored value payroll cards, along with employee pay statements, supporting journals, summaries and management reports.
The company's stock is trading at a price to earnings ratio of 22 which is slightly above average. The stock has a 2.83% dividend yield and a market capitalization of $22.3 billion. The intriguing factors are that the company has $1.3 billion in Cash while only $35 million in long term debt, making the Balance sheet rock. If we calculate the dividend payout ratio, the company pays 36 cents a quarter in dividends x 4 = $1.44 per share. If we divide this number by earnings per share, $1.44 / $2.32, the payout ratio equals 62% which is very good.
Top 5 Performing Stocks To Buy For 2014: Telehop Communications Inc. (HOP.V)
Telehop Communications Inc. provides alternative telecommunication services to residential and business customers in Canada. It offers long distance calling services and cellular long distance services. The company also provides directory assistance and audio conferencing services. In addition, it offers Telehop HomePhone, a voice over Internet protocol service; prepaid calling cards; toll-free numbers; dial-in access numbers; virtual calling service; and Internet services. Telehop Communications Inc. was founded in 1993 and is headquartered in Toronto, Canada.
Top 5 Performing Stocks To Buy For 2014: Optical Cable Corporation (OCC)
Optical Cable Corporation designs, manufactures, markets, and sells fiber optic, and copper data communications cabling and connectivity solutions primarily for the enterprise market in the United States and internationally. The company offers fiber optic cables for military field applications, and indoor and outdoor use; and copper datacom cables, including unshielded and shielded twisted pair for copper network installations. It also provides fiber optic connectivity products, such as fiber optic wall mounts, cabinet mounts and rack mount enclosures, pre-terminated fiber optic enclosures, fiber optic connectors, splice trays, fiber optic jumpers, plug and play cassette modules, pre-terminated fiber optic cable assemblies, adapters, and accessories; and copper connectivity products, including category compliant patch panels, jacks, plugs, patch cords, faceplates, surface mounted boxes, distribution and multi-media boxes, copper rack mount and wall mount enclosures, cable assemblies, cable organizers, and other wiring products for datacenter, telecommunications closet, equipment room, and workstation applications. In addition, the company offers data cabinets, wall-mount enclosures, cable management systems, and open frame relay racks for commercial and residential use; various enclosures, modules, and modular outlets for single dwelling and multiple dwelling residential uses; and cellular distribution system, a distributed antenna system for in-building enhancement of wireless communications signals. Further, it provides applied interconnect systems, such as specialty fiber optic connectors and connectivity components, ruggedized copper datacom connectors, and related systems and solutions for military and harsh environment applications. The company sells its products to distributors, original equipment manufacturers, value-added resellers, and end-users. Optical Cable Corporation was founded in 1983 and is headquartered in Roanoke, Virginia .
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