While it's still early enough in 2012 for us all to feel like fortune-tellers, it's time to read the tea leaves and make bold bets about which components on the Dow Jones Industrials Average
- Bank of America
. The largest bank in the U.S. was the worst-performing Dow stock of 2011, but it's already erased most of its 2011 loss, and it's only a few weeks into the year. Considering that the bank trades at a historic low price to book of 0.3, this one has the legs to run up for the next year.(NYSE: BAC)
- Already the second-best-performing Dow stock of 2012, Caterpillar
has the momentum and macro backdrop to continue digging up profits for investors through this year. A highly cyclical business that swings with emerging-market performance, Caterpillar has indicated great things to come with its recent blowout earnings.(NYSE: CAT)
- With big tech as cheap as it is, how could I leave tech titan Intel
off this list? With its 3% dividend, great track record, and cheap multiples, what's not to love here?(Nasdaq: INTC)
One more stock for 2012
As great as these companies are, there is one stock I'm more bullish on for 2012. I'm not the only one, either: Our chief investment officer has dubbed this winner "The Motley Fool's Top Stock for 2012." I invite you to get free access to this top pick today by clicking here.