U.S. stocks have exploded out of the gate in 2013. The Dow Jones Industrial Average (DJINDICES: ^DJI ) has repeatedly hit new all-time highs while surging nearly 8.6% since the start of the year. Yet despite those impressive gains, the Dow's maintained a respectable average P/E valuation of just 14.9, a number that's far from expensive.
The best investors know that buying good stocks on the cheap is a recipe for success, however. As U.S. markets have surged, others around the world have experienced mixed results. So just which international markets are too cheap to ignore right now -- and which are too expensive for your investment?
Cheap China, expensive America
The United States' national P/E average of stocks ranks quite a bit higher than the Dow's -- it's currently at 17.7, still a respectable valuation but more in line with the impressive gains we've seen since the start of 2013.
Surprisingly, the U.S. ranks as more expensive than the big winner in 2013 that has gobbled up attention everywhere -- Japan. Japanese markets boast a national average P/E of 16.9, even as the Nikkei (NIKKEIINDICES: ^NI225 ) index has significantly outperformed the Dow to start the year. Fueled by the weakening yen and new Prime Minister Shinzo Abe's inflationary tactics, the Nikkei has sprinted to gains of more than 20% year to date, and Japanese stocks remain an attractive buy despite the surge. With the country's central bank unveiling an unprecedented stimulus action this past week, Japan's set to unload a massive amount of yen into its stagnant economy. It's a risky move, but Japanese financial stocks in particular stand to reap rewards on the back of easy money.
Best Sliver Companies To Watch In Right Now: Smith & Wesson Holding Corp (SWHC)
Smith & Wesson Holding Corporation (Smith & Wesson), incorporated on June 17, 1991, is a manufacturer of firearms. The Company manufactures a range of handguns, modern sporting rifles, hunting rifles, black powder firearms, handcuffs, and firearm-related products and accessories for sale to a range of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and globally. It sell its products under the Smith & Wesson brand, the M&P brand, the Thompson/Center brand, and the Walther brand. The Company manufactures its firearm products at its facilities in Springfield, Massachusetts and Houlton, Maine. On July 26, 2012, it sold all of the assets of Smith & Wesson Security Solutions, Inc.
Firearms
During the fiscal year ended April 30, 2012 (fiscal 2012), the Company introduced multiple new handgun and modern sporting rifle models, and one new bolt action rifle platform. The Company's rifle introductions included the addition of the M&P15 300 Whisper to the Company's line of modern sporting rifles. As of April 30, 2012, the Company participated in three categories of the long-gun market and both core categories of the handgun market.
Handguns
The Company manufactures an variety of handgun models that include revolvers and pistols. A revolver is a handgun with a cylinder that holds the ammunition in a series of rotating chambers that are successively aligned with the barrel of the firearm during each firing cycle. There are two general types of revolvers: single-action and double-action. The Company's small-frame revolvers have been carried by law enforcement personnel and personal defense-minded citizens. The Company's revolvers are available in a variety of models and calibers, with applications in virtually all professional and personal markets.
The Company�� M! &P15 Series of modern sporting rifles are designed to satisfy the functionality and reliability needs of global military, law enforcement, and security personnel. These rifles are also popular as sporting target rifles and are sold to consumers through the Company's sporting good distributors, retailers, and dealers. The Company has a range of product portfolio of modern sporting rifles, which includes a lower price-point, sport model, a .22 caliber model, and a fully automatic model designed for the exclusive use of military and law enforcement agencies throughout the world.
Hunting Firearms
The Company manufactures three lines of bolt-action rifles under its Thompson/Center brand consisting of several models in each line. The Company's hunting rifles are offered in 16 different calibers. Bolt-action rifles operate by the cycling of a bolt handle that allows for both the loading and unloading of rounds through a magazine fed system.
During fiscal 2012, the Company introduced the Dimension bolt action rifle platform. Under the Company's Thompson/Center brand, the Company also offers seven models of American-made single shot black powder, or muzzle loader, firearms. The Company offers eight models of interchangeable, single shot firearm systems that deliver numerous gun, barrel, caliber configurations, and finishes. These systems can be configured as a center-fire rifle, rim-fire rifle, shotgun, black powder firearm, or single-shot handgun for use across the entire range of big- and small-game hunting.
Handcuffs
The Company manufactures handcuffs and restraints in the United States. The Company fabricates these products from the carbon or stainless steel.
Smith & Wesson Academy
Through the Smith & Wesson Academy, the Company offers instruction designed to meet the training needs of law enforcement and security customers worldwide. Classes are conducted at the Company's facility in Springfield, Massachusetts or o! n locatio! n around the world.
Specialty Services
The Company's services include forging, heat treating, finishing, and plating. It provides services to third-party customers.
The Company competes with Ruger,Taurus, Beretta, Glock, Heckler & Koch, Sig Sauer, Springfield Armory, Bushmaster, Rock River, Stag Arms, DPMS, Browning, Marlin, Remington, Ruger, Savage, Weatherby, CVA, Traditions, and Winchester.
Advisors' Opinion:- [By Chris Hill]
Groupon (NASDAQ: GRPN ) gets an upgrade. Smith & Wesson (NASDAQ: SWHC ) announces a $100-million stock buyback plan. Restoration Hardware (NYSE: RH ) forecasts strong revenue and profit in the second quarter. And DuPont (NYSE: DD ) warns on earnings. In this installment of Investor Beat, Motley Fool analysts Ron Gross and James Early discuss four stocks making big moves.
Top 10 Japanese Stocks To Own For 2014: iShares Dow Jones US Energy Sector Fund (IYE)
iShares Dow Jones U.S. Energy Sector Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Oil & Gas Index (the Index). The Index measures the performance of the oil and gas sector of the United States equity market. The Index includes companies in industry groups, such as oil and gas producers, and oil equipment, services and distribution. The Index is a subset of the Dow Jones U.S. Total Market Index and is capitalization weighted. The Index is reconstituted quarterly.
The Fund will concentrate its investments in a particular industry or group of industries to approximately the same extent as the Index is so concentrated. The Fund�� investment advisor is Barclays Global Fund Advisors.
Advisors' Opinion:- [By Louis Navellier]
The ishares Dow Jones U.S. Energy Sector Fund (IYE) tracks the performance of 99 major energy stocks in the U.S. IYE is actually up 20% for the year, but it has been trending downward over the past month. Meanwhile, the ishares S&P Global Energy Sector Fund (IXC) is up just 10% so far for the year. This fund, which also contains 99 holdings from all over the world, provides perhaps the best view of how the energy sector is faring on the global level. It has also fallen in the past month.
- [By Aaron Levitt]
Fellow InvestorPlace contributor Lawrence Meyers recently recommended the Energy SPDR (XLE) as good ETF to hold for life. I like the pick and you could certainly do worse, but my personal favorite way�to play WTI crude would be the iShares U.S. Energy ETF (IYE).
Top 10 Japanese Stocks To Own For 2014: Powershares Buyback Achiever Portfolio (PKW)
PowerShares Buyback Achievers Portfolio (Fund) seeks investment results that correspond generally to the price and yield of an equity index called the Share BuyBack Achievers Index (the Index). The Index is designed to track the performance of companies that meet the requirements to be classified as BuyBack Achievers. To become eligible for inclusion in the Index, a company must be incorporated in the United States, trade on the NYSE, the AMEX or the NASDAQ, and must have repurchased at least 5% or more of its outstanding shares for the trailing 12 months. The Index consists of stocks of companies selected by Mergent, Inc. (the Index Provider) pursuant to its own selection methodology. The Fund�� investment advisor is PowerShares Capital Management LLC.
The Index is rebalanced on the last trading date of April, July and October based on the constituents��modified market capitalizations as of the last trading day in March, June and September, respectively. The Fund generally will invest in the stocks comprising the Index in proportion to their weightings in the Index. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate the performance of the Index.
Advisors' Opinion:- [By Jon C. Ogg]
5. Dividends, stock buy-backs, capex, and M&A all increase at a double-digit rate – This is led by a lot of cash flow, underleveraged balance sheets, and possible great places to use cash. The argument for higher cap-ex is as follows: “Pent-up demand and aging of plant, equipment and technology argue for increases in those key areas.”
ETF Recommendation: Vanguard Dividend Appreciation ETF (NYSEArca: VIG) for dividend growers, and PowerShares Buyback Achievers (NYSEArca: PKW) for buyback stocks. Hint: the buyback ETF rose by 45.5% in 2013 after dividend adjustments versus 28.8% for the dividend growth ETF.6. The U.S. dollar appreciates as U.S. energy and manufacturing trends continue to improve.
- [By John Waggoner]
The past five years, the PowerShares Buyback Achievers fund (ticker: PKW), has beaten the SPDR S&P 500 ETF trust by 3.91 percentage points a year, according to Morningstar, the Chicago investment trackers. So far this year, however, the fund has lagged behind the index by 2.28 percentage points ��a sign that Wall Street may be getting less impressed by buybacks.
- [By Marvin Appel, CEO and Founder, Appel Asset Management Corporation]
Buyback Achievers ETF (PKW)
The stocks in this ETF are those that have repurchased at least 5% of their shares in the 12 months preceding the reconstitution of the index every January. 200 stocks currently qualify. (They are weighted by market capitalization.)
- [By Elliott Gue]
Just check out the PowerShares Buyback Achievers ETF (NYSE: PKW), which invests in companies that have bought back at least 5% of their shares outstanding during the prior 12 months. This ETF has more than doubled the returns of the S&P 500 over the past five years.
Top 10 Japanese Stocks To Own For 2014: ALCO Stores Inc (ALCS)
Alco Stores, Inc., incorporated on June 2, 1915, is engaged in the business of retailing general merchandise throughout the central portion of the United States of America through a range of department store outlets. The Company�� ALCO stores offer a range of merchandise consisting of approximately 35,000 items, including automotive, commodities, crafts, domestics, electronics, furniture, hardware, health and beauty aids, housewares, jewelry, ladies�� men�� and children�� apparel and shoes, pre-recorded music and video, sporting goods, seasonal items, stationery and toys.
As of February 3, 2013, the Company operated 217 stores in 23 states located in mostly smaller communities in the central United States. The stores average approximately 21,000 square feet of selling space, with an additional 5,000 square feet utilized for merchandise processing, temporary storage and administration.
Advisors' Opinion:- [By Monica Gerson]
ALCO Stores (NASDAQ: ALCS) is projected to post its Q2 earnings.
Digital Cinema Destinations (NASDAQ: DCIN) is estimated to post a Q4 loss at $0.11 per share on revenue of $11.17 million.
Top 10 Japanese Stocks To Own For 2014: Cantel Medical Corp. (CMN)
Cantel Medical Corp. provides infection prevention and control products and services in the healthcare market. Its Endoscopy segment offers medical device reprocessing systems, disinfectants, detergents, and other supplies that are used to disinfect flexible endoscopes; and disposable infection control products for cleaning and disinfecting reusable components used in gastrointestinal endoscopy procedures. Its Water Purification and Filtration segment offers water purification equipment and services, filtration and separation products, and disinfectants for medical, pharmaceutical, biotech, beverage, and commercial industrial markets. This segment also offers hollow fiber membrane filtration and separation technologies for medical applications; and sterilants, disinfectants, and decontamination services used in various applications for infection prevention and control. The company�s Healthcare Disposables segment offers single-use infection prevention and control healthca re products, including face masks, sterilization pouches, towels and bibs, tray covers, saliva ejectors, germicidal wipes, plastic cups, and disinfectants used principally in the dental market; and biological and chemical indicators for sterility assurance monitoring services in the acute-care, alternate-care, and dental markets. Its Dialysis segment offers medical device reprocessing systems, sterilants/disinfectants, dialysate concentrates, and other supplies for renal dialysis. The company�s Specialty Packaging segment offers specialty packaging and thermal control products, as well as related compliance training for the transportation of infectious and biological specimens and thermally sensitive pharmaceutical, medical, and other products. Cantel Medical Corp. sells its products through its direct distribution network in the United States; and directly and through third-party distributors internationally. The company was founded in 1963 and is based in Little Falls, Ne w Jersey.
Advisors' Opinion:- [By Marc Bastow]
Infection protection and control company Cantel Medical (CMN) raised its semiannual dividend 21.6% to 4.5 cents per share, payable Jan. 31, 2014, to shareholders of record as of Jan. 17.
CMN Dividend Yield: 0.26%
Top 10 Japanese Stocks To Own For 2014: Willis Group Holdings Limited(WSH)
Willis Group Holdings Public Limited Company provides a range of insurance brokerage, reinsurance, and risk management consulting services to its clients worldwide. The company offers various insurance brokerage services, including property damage, offshore construction, liability, and control of well and pollution insurance to the energy industry; and marine insurance and reinsurance brokerage services consisting of hull, cargo, and general marine liabilities. It also provides its services to aerospace clients, including aircraft manufacturers, air cargo handlers and shippers, airport managers, and other general aviation companies; and advisory services comprising claims recovery, contract and leasing risk management, market information, and safety services. In addition, the company offers risk management advice and brokerage services to the construction industry; brokerage for directors' and officers' insurance, as well as professional indemnity insurance for corporation s and professional firms; and specialist risk management and insurance services to fine art, diamond, and jewelry businesses, and operators of armored cars. Further, it provides special contingencies packages; services for horse racing and breeding industry, and agriculture/crop sector; and advice to companies involved in the insurance and reinsurance industry on capital markets products. Additionally, the company offers health, welfare, and human resources consulting and brokerage services to small, medium, and large corporations, as well as the employee benefits practice. It serves clients located in approximately 190 countries, including multinational and middle-market companies operating in various industries, as well as public institutions and individual clients. The company was formerly known as Willis Group Holdings Limited and changed its name to Willis Group Holdings Public Limited Company in January 2010. The company was founded in 1828 and is headquartered in Lond on, the United Kingdom.
Advisors' Opinion:- [By Jonas Elmerraji]
$11 billion UK insurer Willis Group Holdings (WSH) is another uptrending channel. The big difference with Willis is that this name is actually at its trendline support level this week. Better still, shares are bouncing higher -- and it makes sense to buy the bounce here.
Buying off a support bounce makes sense for two big reasons: It's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring WSH can actually still catch a bid along that line.
The 50-day moving average has been a good proxy for support on the way up, so it's a solid place to put a protective stop if you decide to be a buyer at this point.
- [By Marc Bastow]
Insurance brokerage and risk management consultant Willis Group (WSH) raised its quarterly dividend 7.1% to 30 cents per share, payable April 15 to shareholders of record as of March 31.
WSH Dividend Yield: 2.89%
Top 10 Japanese Stocks To Own For 2014: Oracle Corporation(ORCL)
Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.
Advisors' Opinion:- [By Jon C. Ogg]
Oracle Corp. (NYSE: ORCL) finally has traded back up above a range from a series of earnings disappointments. Will that last? The enterprise software leader is expected to report earnings of $0.70 per share and $9.36 billion in revenue. For the next quarter, those estimates are $0.96 EPS and $11.5 billion in sales. By the way, it has now been a while since Oracle made a major acquisition, and its 2014 revenue growth is expected to be only 3.5%, followed by almost 5% growth in 2015. Will Larry Ellison telegraph any deals ahead? Oracle trades at only 12 times next year’s EPS estimates, based on 9.5% earnings growth.
- [By Maria Armental var popups = dojo.query(".socialByline .popC"); popups.forEach]
Among the companies with shares expected to actively trade in Friday’s session are CarMax Inc.(KMX), Darden Restaurants Inc.(DRI) and Oracle Corp.(ORCL)
- [By Monica Gerson]
Oracle (NYSE: ORCL) reported weaker-than-expected fiscal fourth-quarter results. Its adjusted earnings came in at $0.92 per share, missing analysts' estimates of $0.95 per share. Oracle shares slipped 5.01% to $40.38 in the after-hours trading session.
