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By Jeff Reeves, Editor of InvestorPlace.com
Wondering what the best stocks to buy for next year are? Well, look no further than the 10 Best Stocks for 2012.
This InvestorPlace feature lists 10 long-term investments from a group of money managers, market experts and financial journalists. The 10 Best Stocks for 2012 is meant to provide buy-and-hold picks you can purchase now and sit on for a year – ideally, winding up richer on the other side.
The buy list this year is a diverse group of stocks – from banks to technology, from emerging markets to Dow components, from old favorites to a stock that went public just a few months ago.
Throughout the year, the writers will regularly offer updates on the good, the bad and the unexpected as it relates to their best stock for 2012. We'll find out in a year who had the best pick – but first, let's examine each writer's recommendation and what made them pick their stock as the best investment for the New Year:
Best Stock for 2012: Caterpillar
Investor and CBS MoneyWatch columnist Dan Burrows picked industrial giant Caterpillar (NYSE:CAT) as his best stock for 2012.
His reasons? Dan says CAT stock was oversold during the summer volatility, has good fundamentals (including retail sales that grew 31% in October) and a bargain valuation with a forward price-to-earnings ratio of about 10.
"Wall Street's mean (and median) price target for Caterpillar currently stands at $114.50, according to Thomson Reuters data. Add in the 2% yield on the dividend, and the stock offers an implied return of 28% in the next 12 months or so," writes Dan. "Not too shabby for a company with a market cap of more than $58 billion."
Read Dan's complete recommendation on Caterpillar.