2012 was an exciting year for stocks. The major indexes all had gains as the economy has been recovering nicely. A lot of investors are probably sad that 2012 has come and gone as the year was great to a lot of traders. Here are the top five stocks of 2012.
Sprint Nextel had a stellar 2012. In January, the stock traded at as low as $2.34, and the stock ended the year at $5.56 a share. The stock enjoyed an impressive 138 percent return in 2012. A lot of investors were worried that Sprint was headed for bankruptcy, but as the year progressed, the stock shook off a lot of concerns and ended the year on a bright note.
Many investors do not get excited about boring names. In reality, they should, as Whirlpool Corporation enjoyed a 106 percent gain in 2012. The housing recovery is in full swing, and the likes of Whirlpool do well when the housing market recovers. Click here for the top stock picks in 2012
Bank of America had a solid 2012. The stock ended up with a 99 percent gain in 2012. This is impressive as bank stocks previously had a few miserable years. Bank of America concentrated on clearing up their balance sheet and improving their public image. In reality, the company is poised for a terrific 2013 and beyond as it appears the company is still undervalued when compared to book value.
With travel picking up, Expedia had a solid 95 percent gain in 2012. Not only that, Expedia gained a solid foothold into the valuable China market. Expedia had been undervalued for a long time as people were concerned travel was not picking up as quickly as they had hoped.
Lennar Corporation had a stellar 2012 with a gain of 92 percent. The stock enjoyed a fabulous 2012 as more people piled into housing investments. With the housing market crash, many investors were afraid of names like Lennar. Now, with the economy recovering, housing stocks are becoming more popular.
A lot of names recovered nicely in 2012. Most stocks that had a great 2012 are in sectors that seem to be recovering after the last recession. In reality, some of these names are still undervalued as the industries they are in are still recovering.