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Are We Going to See Another Stock Market Correction?

With the persistence of European debt woes and recent increases in market volatility, could we be ready for another correction? One thing to consider is the S&P 500's performance relative to other similar indexes. Michael Jarman of H20 Markets told CNBC that the UK's FTSE 100 index generally shadows the S&P 500, but has only returned 3.5% during the first quarter, while the S&P 500 returned around 12%.

Marc Faber, editor and publisher of the Gloom, Boom and Doom Report, believes we will face another correction, or perhaps a bear market. In contrast, another strategist claimed that the bull market should continue, while George Gober of Matterly Asset Management said that the S&P 500's outperformance is likely due to Apple's (Nasdaq: AAPL  ) phenomenal increases. He also added that U.S. economic data has been better than anywhere else in the world.

However, the Labor Department announced that only 120,000 jobs were created in March, which marks the smallest increase since October, and came in lower than the expected 200,000 jobs. Unemployment fell to a three-year low in March to 8.2%.

Business section: Investing ideas
For a look at stocks that may hold strong in another correction, we're listing companies that have gained over 20% in the past quarter with encouraging trends from DuPont analysis. Do you think these stocks will continue moving higher?

List sorted by market cap. (Click here to access free, interactive tools to analyze these ideas.)

1. Apple: Designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, and sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. It has a market cap of $583.85 billion. The stock has gained 47.95% over the past quarter. MRQ net profit margin at 28.2% vs. 22.45% y/y. MRQ sales/assets at 0.334 vs. 0.308 y/y. MRQ assets/equity at 1.54 vs. 1.587 y/y.

2. Las Vegas Sands (NYSE: LVS  ) : Develops and operates various integrated resort properties primarily in the United States, Macau, and Singapore. It has a market cap of $44.40 billion. The stock has gained 38.74% over the past quarter. MRQ net profit margin at 17.11% vs. 16.15% y/y. MRQ sales/assets at 0.114 vs. 0.096 y/y. MRQ assets/equity at 2.833 vs. 2.937 y/y.

3. CA Technologies (NYSE: CA  ) : Designs, develops, markets, delivers, licenses, and supports information technology management software products that operate on a range of hardware platforms and operating systems. It has a market cap of $12.45 billion. The stock has gained 27.47% over the past quarter. MRQ net profit margin at 20.82% vs. 17.48% y/y. MRQ sales/assets at 0.107 vs. 0.096 y/y. MRQ assets/equity at 2.058 vs. 2.176 y/y.

4. Terra Nitrogen Company (NYSE: TNH  ) : Produces and distributes nitrogen fertilizer products to agricultural and industrial customers. It has a market cap of $5.04 billion. The stock has gained 52.17% over the past quarter. MRQ net profit margin at 64.58% vs. 46.05% y/y. MRQ sales/assets at 0.668 vs. 0.482 y/y. MRQ assets/equity at 1.117 vs. 1.413 y/y.

5. Thomas & Betts: Designs, manufactures, and markets electrical components for industrial, construction, and utility markets in the United States, Canada, and Europe. It has a market cap of $3.75 billion. The stock has gained 24.09% over the past quarter. MRQ net profit margin at 9.42% vs. 7.51% y/y. MRQ sales/assets at 0.214 vs. 0.202 y/y. MRQ assets/equity at 1.762 vs. 1.795 y/y.

6. Solutia (NYSE: SOA  ) : Engages in the manufacture and marketing of performance materials and specialty chemicals used in a range of consumer and industrial applications. It has a market cap of $3.41 billion. The stock has gained 58.25% over the past quarter. MRQ net profit margin at 10.27% vs. 9.61% y/y. MRQ sales/assets at 0.149 vs. 0.138 y/y. MRQ assets/equity at 3.837 vs. 4.832 y/y.

7. Ascena Retail Group: Operates as a specialty retailer of apparel for women and tween girls in the United States and Puerto Rico. It has a market cap of $3.27 billion. The stock has gained 26.26% over the past quarter. MRQ net profit margin at 7.39% vs. 5.65% y/y. MRQ sales/assets at 0.449 vs. 0.437 y/y. MRQ assets/equity at 1.528 vs. 1.573 y/y.

8. ZOLL Medical: Develops, manufactures, and markets resuscitation devices and related software solutions worldwide. It has a market cap  of $2.07 billion. The stock has gained 37.99% over the past quarter. MRQ net profit margin at 4.96% vs. 3.45% y/y. MRQ sales/assets at 0.281 vs. 0.257 y/y. MRQ assets/equity at 1.288 vs. 1.374 y/y.

9. Darling International: Provides rendering, recycling, and recovery solutions to the food industry worldwide. It has a market cap of $1.94 billion. The stock has gained 20.57% over the past quarter. MRQ net profit margin at 6.85% vs. 4.41% y/y. MRQ sales/assets at 0.304 vs. 0.164 y/y. MRQ assets/equity at 1.54 vs. 2.977 y/y.

10. SS&C Technologies Holdings: Provides software products and software-enabled services to the financial service providers worldwide. It has a market cap of $1.74B. The stock has gained 24.19% over the past quarter. MRQ net profit margin at 13.86% vs. 10.66% y/y. MRQ sales/assets at 0.079 vs. 0.067 y/y. MRQ assets/equity at 1.232 vs. 1.488 y/y.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


Kapitall's Danny Guttridge does not own any of the shares mentioned above. The Motley Fool owns shares of Apple and Darling International. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.
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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 13, 2012, at 7:33 AM, cp757 wrote:

    Las Vegas Sands gets 88% of it's revenue from Asia with properties in Singapore and Macau. This week marked an historic event with the opening of Cotai Central 04/11/2012. Sands Cotai Central welcomed over 84,000 visitors during the first six hours of its opening and the crowds were staggering. In total, Sands China properties – Sands Macao, Venetian Macao, Plaza Macao and Sands Cotai Central – welcomed over 200,000 visitors on Wednesday .Of the more than 12,000 public companies traded in the US, there are only six with the combination of a market cap over $10 bn, a 2011-2013 revenue compound annual growth rate of more than 20 percent, and a 2013 estimated free cash flow yield of more than 8 percent. Those companies are Apple, Las Vegas Sands, NetApp, Baidu, Ensco and Vertex.’

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