Top 10 Cheap Stocks To Watch For 2014

Expect relatively big short-term shifts among markets and assets as traders try to keep cheap money at work toward maximizing rewards while limiting risks, writes MoneyShow's Jim Jubak, also of Jubak's Picks.

Was last week's rally—you remember Wednesday and Thursday, right?—on the surprise no taper decision from the Federal Reserve, a sign that stocks are headed even higher from here or an indication of an increasingly nervous and volatile market?

I'd vote from the latter.

Think about this indicator: A decision to put off a cut of what was probably no more than $10 billion to $15 billion a month in Fed purchases of Treasurys and mortgage-backed securities was enough to drive the Standard & Poor's 500 Index (SPX) to a new all-time high.

That's clearly an overreaction, unless global financial markets see the Fed's decision on when to taper its purchases as a marker for the end of cheap money. I think the logic goes something like this: As long as the Fed doesn't taper at all, the moment when the central bank decides to start to raise short-term rates is postponed. When the Fed does start to taper, even if rising short-term rates aren't on the immediate agenda, they do go on the calendar.

Top China Stocks To Buy Right Now: Hewlett-Packard Company(HPQ)

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, and software and services for the commercial and consumer markets. The company?s Services segment provides consulting, outsourcing, and technology services to infrastructure, applications, and business process domains. Its Imaging and Printing Group segment provides consumer and commercial printer hardware, supplies, media, and scanning devices, such as inkjet and Web solutions, laser jet and enterprise solutions, managed enterprise solutions, graphics solutions, and printer supplies. The company?s Enterprise Servers, Storage, and Networking segment offers industry standard s ervers, business critical systems, storage platforms, and networking products, including switches, routers, wireless LAN, and TippingPoint network security products. Its HP Software segment provides enterprise IT management software, information management solutions, and security intelligence/risk management solutions. The company?s HP Financial Services segment offers leasing, financing, utility programs, and asset recovery services; and financial asset management services for enterprise customers, as well as specialized financial services to SMBs, and educational and governmental entities. Hewlett-Packard Company also provides business intelligence solutions that enable businesses to standardize on consistent data management schemes, connect and share data across the enterprise, and apply analytics, as well as licenses its specific technology to third parties. The company was founded in 1939 and is headquartered in Palo Alto, California.

Advisors' Opinion:

• [By Tim Brugger]

  Microsoft (NASDAQ: MSFT  ) �is making inroads in a key market, and at the rate its going, longtime stalwarts including Hewlett-Packard (NYSE: HPQ  ) and IBM (NYSE: IBM  ) better stand up and take notice.

• [By John Divine]

  While Hewlett-Packard (NYSE: HPQ  ) was easily the most pronounced laggard today, slumping 2.6%, Friday's underperformance is misleading. That's because the stock rocketed up 17.1% yesterday after slamming earnings expectations and forecasting better future results than anyone in his or her right mind was looking for. HP is a fairly volatile stock to begin with, and today's losses most likely stemmed from impatient investors taking profits going into the long weekend.

• [By Evan Niu, CFA]

  Thinking inside the box
  As further proof that Hewlett-Packard (NYSE: HPQ  ) is sick of Wintel, the PC giant has just partnered with Big G to launch a new productivity offering geared toward small and medium businesses, or SMB. The package is called HP SMB IT in a Box, and HP is positioning it as a "one-stop shop" targeting the SMB segment.

Top 10 Cheap Stocks To Watch For 2014: The Travelers Companies Inc.(TRV)

The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.

Advisors' Opinion:

• [By Chris Hill]

  Shares of Netflix (NASDAQ: NFLX  ) soar in the wake of better-than-expected first quarter earnings and the addition of 3 million new subscribers. Coach (NYSE: COH  ) gets a boost from a 6% increase in third-quarter profits. Shares of The Travelers Companies (NYSE: TRV  ) rise on higher-than-expected first-quarter earnings. And RadioShack (NYSE: RSH  ) reports a wider-than-expected first-quarter loss and a decline in same-store sales. In this installment of Investor Beat, our analysts discuss four stocks making moves.

Top 10 Cheap Stocks To Watch For 2014: Alliance Holdings GP L.P.(AHGP)

Alliance Holdings GP, L.P., through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents. The company operates nine underground mining complexes in Illinois, Indiana, Kentucky, Maryland, and West Virginia. As of December 31, 2010, it had approximately 697.4 million tons of proven and probable coal reserves in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, the company leases land; and operates a coal loading terminal, with a capacity of 8.0 million tons with ground storage of approximately 60,000 to 70,000 tons, on the Ohio River at Mt. Vernon, Indiana. Further, it engages in purchasing and selling coal; and providing services, including ash and scrubber sludge removal, coal yard maintenance, and arranging alternate transportation services. Alliance GP, LLC, serves as the general partner of the company. Allian ce Holdings GP, L.P. is based in Tulsa, Oklahoma.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Alliance Holdings GP (Nasdaq: AHGP  ) , whose recent revenue and earnings are plotted below.

Top 10 Cheap Stocks To Watch For 2014: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:

• [By Marc Bastow]

  Motion and control systems manufacturer Parker-Hannifin (PH) raised its quarterly dividend 4.6% to 45 cents per share, payable on Dec. 6 to shareholders of record as of Nov. 8. The increase marks the 57th consecutive annual dividend increase.
  PH Dividend Yield:�1.55%

• [By Charles Mizrahi, President and CEO, Hampton Investors, Inc.]

  Parker Hannifin (PH) generates strong revenue from its aerospace division, while its primary industrial segment is lagging.

  Overall, we like the company's balanced portfolio. PH had solid order rates this past year with backlog of $3.6 billion between its industrial and aerospace segments.

Top 10 Cheap Stocks To Watch For 2014: CVS Corporation(CVS)

CVS Caremark Corporation operates as a pharmacy services company in the United States. The company?s Pharmacy Services segment provides a range of pharmacy benefit management services, including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management, and claims processing; and drug benefits to eligible beneficiaries under the Federal Government?s Medicare Part D program. This segment primarily serves employers, insurance companies, unions, government employee groups, managed care organizations and other sponsors of health benefit plans, and individuals. As of December 31, 2010, it operated 44 retail specialty pharmacy stores, 18 specialty mail order pharmacies, and 4 mail service pharmacies located in 25 states, Puerto Rico, and the District of Columbia. This segment operates business under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS/pharmacy, CarePlus, RxAmerica, Accordant, and TheraCom names. The company?s Retail Pharmacy segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, seasonal merchandise, greeting cards, and convenience foods through its pharmacy retail stores and online, as well as offers film and photo finishing, and health care services. This segment operated 7,182 retail drugstores located in 41 states, Puerto Rico, and the District of Columbia; and 560 retail health care clinics in 26 states and the District of Columbia under the MinuteClinic name. It has a strategic alliance with Alere, L.L.C. for the management of disease management program offerings that cover chronic diseases, such as asthma, diabetes, congestive heart failure, and coronary artery disease. CVS Caremark Corporation was founded in 1892 and is based in Woonsocket, Rhode Island.

Advisors' Opinion:

• [By Adam Levine-Weinberg]

  Rite Aid also faces particular challenges as the smallest of the three major pharmacy chains. Walgreen and CVS Caremark (NYSE: CVS  ) already offer much broader pharmacy networks than Rite Aid and have ample capital to expand onto Rite Aid's turf, whereas Rite Aid is shrinking. This process could lead to a growing cost gap that would hurt Rite Aid's long-term competitiveness.

• [By Dividend]

  CVS Caremark (CVS)�has a market capitalization of $84.35 billion. The company employs 203,000 people, generates revenue of $123.133 billion and has a net income of $3.882 billion. CVS Caremark�� earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.014 billion. The EBITDA margin is 7.32 percent (the operating margin is 5.59 percent and the net profit margin 3.15 percent).�

• [By Anh HOANG]

  While Rite Aid is considered a good turnaround story, its bigger peers�CVS Caremark (NYSE: CVS  ) and Walgreen (NYSE: WAG  ) are seen as having better-established businesses with more stable operating performances. Let's take a closer look at Rite Aid to see whether or not it is a good buy compared to the competition.

• [By Shauna O'Brien]

  CVS Caremark Corporation (CVS) reported on Wednesday that it has agreed to acquire infusion services and nutrition business Coram LLC for $2.1 billion.

  CVS will purchase Coram from Apria Healthcare Group Inc in a deal that will likely close in the first quarter of 2014. CVS said that this acquisition is expected to add $1.4 billion to revenue in the first year and 3 to 5 cents per share in 2015. This purchase is in-line with the company strategy of focusing on core businesses that will drive growth.

  Jon Roberts, President of CVS Caremark Pharmacy Services said in a statement: “Bringing together CVS Caremark’s unique range of specialty pharmacy services with Coram’s infusion capabilities will expand our competitive offerings in the specialty arena. Infusion will be a valuable component of our broad specialty pharmacy offering going forward. Our comprehensive services will enable us to streamline care management for patients as well as their physicians, leading to better health outcomes while avoiding unnecessary costs.”

  CVS Caremark shares were mostly flat during pre-market trading Wednesday. The stock is up 27% YTD.

Top 10 Cheap Stocks To Watch For 2014: Progress Software Corporation(PRGS)

Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massac husetts.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Progress Software (NASDAQ: PRGS) shares tumbled 11.15 percent to $22.82 after the company issued a weak Q1 forecast.

  FireEye (NASDAQ: FEYE) was also down, falling 9.35 percent to $81.20 after the company's secondary offering lead to fear on the street.

• [By Rick Munarriz]

  Progress Software (NASDAQ: PRGS  ) moved higher after posting better-than-expected quarterly results this week. The provider of developer tools software saw revenue rise by a better-than-expected 10%, and its adjusted net income of $0.27 a share blew past the $0.22 a share that the market was forecasting.�

• [By John Kell and Lauren Pollock var popups = dojo.query(".socialByline .popC"); ]

  Progress Software Corp.(PRGS) trimmed its expectations for the fiscal first quarter, as the business-software provider said results were hurt by lower license sales. Shares dropped 12% to $22.27 premarket.

• [By Rich Duprey]

  Believing it should have a single, cohesive platform for the development of�cloud and mobile application development technologies, Progress Software (NASDAQ: PRGS  ) announced this morning it was selling its�Apama�complex event processing solution to Software AG for an undisclosed sum.

Top 10 Cheap Stocks To Watch For 2014: Whole Foods Market Inc.(WFM)

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. It also provides specialty products, such as beer, wine, and cheese; body care and educational products, such as books; and floral, pet, and household products. As of February 9, 2011, the company operated 302 stores in the United States, Canada, and the United Kingdom. Whole Foods Market, Inc. was founded in 1978 and is headquartered in Austin, Texas.

Advisors' Opinion:

• [By Victor Reklaitis and Barbara Kollmeyer]

  Shares of Whole Foods (WFM) �dropped 10% in premarket trading, after the high-end supermarket chain fell short of analysts��revenue expectations late Wednesday. It also cut its fiscal-year guidance, citing current sales trends.

• [By Joe Tenebruso and Richard Engdahl]

  Is Whole Foods (NASDAQ: WFM  ) a culinary destination? Is it a neighborhood bar? Is it a lifestyle? Or is it just a fancy-pants grocery store that's trying too hard?�

• [By Selena Maranjian]

  Kroger stock compares well with competitors, as well. Whole Foods Market (NASDAQ: WFM  ) might have fatter profit margins, for example, but both its current and forward P/E ratios are above its five-year average of 28. Whole Foods may be the go-to grocer for organic fare, but Kroger is increasingly offering organic items, as is even Wal-Mart (NYSE: WMT  ) . Meanwhile, Wal-Mart's current P/E is a bit above its 14.5 five-year average and its forward P/E a bit below. Its dividend, recently yielding 2.4%, has been growing faster, though, at a 15% average over the past five years. Wal-Mart's revenue has been growing more slowly than Kroger's.

• [By Ben Levisohn]

  Amazon.com (AMZN) might be bringing Amazon Fresh to a city near you–and hammering your grocery stock in the process. Deutsche Bank sees tough times for Supervalu�(SVU) and Safeway�(SWY)� if an when Amazon expands its grocery delivery service beyond its three current test markets, while Kroger (KR) and Whole Foods Markets (WFM) should be able to thrive.