As the Fool's newly minted Chief Investment Officer, Andy Cross needs to be familiar with stocks across the range of market caps, industries, and investing styles. So it's no wonder that the stocks that reside on his watchlist range from a relatively obscure small cap to one of the world's most recognized brands.
One to watch
First up is the universally renowned Neogen
The company states on its website that it's working aggressively to become the dominant provider of products dedicated to food and animal safety by focusing on four areas: higher sales from existing products, introduction of new products, expansion of international markets, and acquisitions and strategic alliances. Andy thinks it's succeeding on all of these fronts, even if he was initially put off by its serial acquisitions.
After a somewhat heated run-up, the share price has taken a breather of late, pulling back nearly 20% since early January before bouncing back in the past week. That's almost made it a buying opportunity, but Andy wants to get more of a feel for the company's new CFO before committing -- although the fact that they're both University of Michigan alumni gives Andy a good feeling.
Two to watch
Second on Andy's watchlist is lululemon athletica
"This one hit me hard in two ways: I missed a multibagger, and I've spent hundreds of dollars on their clothes," he says. "But I learned a valuable lesson in the process. You shouldn't underestimate the resiliency of the American consumer, especially when a company is making great equipment and, more importantly, can successfully sell not just goods, but also a lifestyle. You compare lulu to a company like Under Armour
Those legs have run up quite a bit. Andy's generally OK with buying a company even after the share price has climbed, but he's hoping for a bit better of a buying opportunity before jumping in.
Three to watch
Finally, Andy's got his eye on global powerhouse McDonald's
Specifically, Andy's impressed with McDonald's menu evolution, from the era of supersizing to healthy alternatives that actually taste good. That's also more appealing to an international audience. Foreign business usually takes time to warm up, so those stores start off less profitable than their U.S. counterparts. But once their sales accelerate, they will provide a significant boost to the company, because two-thirds of McDonald's business is outside the United States.
If you want all the latest information on the stocks mentioned in this story, create a watchlist right now and never miss the latest news or numbers. Just click Neogen, lululemon athletica, or McDonald's to add them to your watchlist or visit www.MyWatchlist.com to start one from scratch.