Stocks for 2013: Will These Hot Starters Be Good All Year?

February 5, 2013

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3 min read

With 2013 well underway, several companies seem to be on their way to a strong year. Here are a few names that are establishing new 52-week highs and are liked by Wall Street based on analyst ratings. The examples given here do not by any means constitute an exhaustive list of the screening results, but they do indicate companies, and maybe industries, that are worth keeping tabs on throughout the year:

DXP Enterprises (DXPE), which is up over 16 percent so far in 2013, is a U.S.-based wholesaler of industrial equipment. With a cap of $811.10 million, and sales at $1.02 billion, their operations extend far beyond equipment sales alone, as they are involved in service & repair, construction, engineering, and energy projects, and are also poised to take advantage of global infrastructure spending, among other things. After a hiccup in mid-November of last year, their share price has climbed sharply to $58.59, with a projected EPS growth for the coming year at 17.08 percent, and over the next five years at 28.10 percent. This will be another company to watch as the year progresses.

Mueller Industries (MLI) is an American company with a global presence in metallurgy, particularly copper tubing and fittings. Aside from a two-week dive last November, the company’s shares have steadily been gaining steam since last June, and are up almost 6 percent this year. With a market cap of $1.49 billion, sales at $2.18 billion, and an earnings growth of 76.89 percent projected for the coming year, the company seems well-positioned to take advantage of infrastructure and building projects the world over.

The health services industry is also showing some bright spots. The Danish company Novo Nordisk (NVO), specializing in diabetes care and hormone therapy, has been performing very well since mid-November of last year and is up over 16 percent year-to-date. With a cap of $85.93 billion, sales at $13.75 billion, and forward P/E ratio of $23.27, analysts are rating NVO right now as a strong buy, and this is reflected in its current share price of $192.69 (up over 25 percent since last November).

Celldex Therapeutics (CLDX) is another such example, up 10.5 percent this year. According to their website, CLDX is “the first anti-body based combination Immunotherapy Company” that specializes in cancer and other difficult-to-treat medical conditions. Sporting relatively more modest cap and sales figures ($459.89 million and $10 million respectively), their stock price has climbed rather quickly to $7.68 since last November when it was at $5. While the company is still too young to have any reliable projections figures, the nature of their work and the fact that they are also being rated as a Strong Buy are facts that suggest they should by all means be kept on the radar.

Finally, Delek Logistics Partners LP (DKL), a new U.S.-based independent oil and gas company that owns pipeline, transportation, and marketing assets, has put up a strong performance with an over 13 percent gain year-to-date. Its cap is currently at $625.44 million, while sales are at $960.37 million, and its share price has climbed rather quickly to $26.47. Add to that a forward P/E of 17.14 percent, and an EPS for the next year projected at 78.82 percent, this company is another one to keep an eye on throughout 2013.

Michael Teague

Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.

Stocks for 2013: Will These Hot Starters Be Good All Year?

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