Barron’s: U.S. Stocks Poised For A Strong Run In 2010 (XOM, CVX, C, AAPL, BAC)
March 08, 2010 3:12 PM
According to Barron’s, Tuesday marks a major anniversary for the U.S. stock market, since on Mar.9, 2009, the Dow Jones Industrials, and the S&P’s 500 (NYSE: SPY) both bottomed, with the Dow at 6,547, and the S&P at 676.
In the past 12 months the industrials have rallied 61%, to 10,566, while the S&P is up 68%, to 1,138. Although both indices are up just 1% to 2% this year, indications are that the market will gain a lot more in 2010.
The S&P 500 is trading at about 15 times estimated 2010 profits of $75, based on Wall Street strategists' forecasts, which is definitely better than the 2010 profit forecast of only $66, a year back.
The biggest contributions to S&P profit growth in 2010 are likely to come from the financial, energy, and technology sectors, including Citigroup (NYSE: C), Bank of America (NYSE: BAC), ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), Apple (NASDAQ: AAPL), and Intel (NASDAQ: INTC).
