Investor Fear Means These Stocks Will Thrive in '11

Despite a gain of more than 10% in the S&P 500 over the past three months, there's still a real buying opportunity in growth stocks: Our 10 best for 2011 are expected to bolster their profits an average of 61% next year -- vs. 14% for the S&P -- and yet they trade at an average 12 times next year's earnings, vs. 13 times for the S&P.

Our selections this year are slanted toward commodities. Exposure to oil, chemicals, and fertilizer should provide protection against a falling dollar or an outbreak of a 1970s-style rise in inflation, which we think is a bigger threat than a double-dip recession. (We've also made some contrarian selections, including one housing-related stock.) By Jon Birger, contributorNEXT: Mosaic Email Print RSS var shared_object = SHARETHIS.addEntry({ title: storyinfo.title, url: storyinfo.earl, summary: storyinfo.summary, icon: storyinfo.icon }); shared_object.attachChicklet("email", document.getElementById("emailIcon")); Last updated December 09 2010: 10:57 AM ET cnnad_createAd("379911","http://ads.cnn.com/html.ng/site=cnn_money&cnn_money_position=628x215_bot&cnn_money_rollup=personal_finance&cnn_money_section=quigo&cnn_money_subsection=galleries¶ms.styles=fs","215","628"); var fbcUnique = false;More Recovery stocks: Neil Hennessy's best bets The fund manager recently reshuffled the Hennessy Focus 30 Fund. Here's why he's doubling down on consumer discretionary stocks. More Warren Buffett: Forget gold, buy stocksIn an interview with commenator Ben Stein, Buffett says certain parts of the economy are recovering and there's reason to be optimistic. Gold at these levels is only a fool's game. More Can VCs be value investors? Venture capitalists must be good stock pickers and builders of young companies. They don't operate with a margin of safety, but they can learn from the principals of value investing. More cnnad_createAd("803398","http://ads.cnn.com/html.ng/site=cnn_money&cnn_money_brand=fortune&cnn_money_position=336x280_rgt&cnn_money_rollup=personal_finance&cnn_money_section=investing_investors_guide¶ms.styles=fs","280","336"); function showNavTab(tabId, tabNo) { var tabCollection = document.getElementById(tabId); tabCollection.className='Tab'+tabNo+'Visible'; } Mortgage & Savings Center Mortgages Home Equity Loan Insurance Credit Cards CDs   Overnight Avg Rate Latest Change Last Week 30 yr fixed4.91%4.66% 15 yr fixed4.25%4.03% 5/1 ARM3.55%3.46% 30 yr refi4.79%4.55% 15 yr refi4.10%3.89% Find the best auto, life, home, health rates Enter Zip code: Select a product: Auto Home Life Long-Term Care Health Insurance news and resources from BankRate Finding a sweet deal on classic car insurance Term life insurance gets a boost Does your insurance agency have you covered? Wipeout! Insurance for reality TV var cc_array = []; cc_array.push({rate:'15.87%',name:'Balance Transfer',jsParam:'balancetransfer',change:'U',lweek:'15.84%'}); cc_array.push({rate:'10.61%',name:'Low Interest',jsParam:'lowinterest',change:'D',lweek:'10.67%'}); cc_array.push({rate:'15.53%',name:'Rewards',jsParam:'rewards',change:'D',lweek:'15.68%'}); cc_array.push({rate:'13.24%',name:'Business',jsParam:'business',change:'S',lweek:'13.24%'}); cc_array.push({rate:'16.54%',name:'Cash Back',jsParam:'cashback',change:'D',lweek:'16.59%'}); var home_array = []; home_array.push({rate:'5.08%',name:'$30K HELOC',jsParam:'30kHeloc',change:'U',lweek:'5.04%'}); home_array.push({rate:'4.81%',name:'$50K HELOC',jsParam:'50kHeloc',change:'U',lweek:'4.77%'}); home_array.push({rate:'7.20%',name:'$30K Home Eq',jsParam:'30kHomeEq',change:'U',lweek:'7.00%'}); home_array.push({rate:'7.04%',name:'$50K Home Eq',jsParam:'50kHomeEq',change:'U',lweek:'6.80%'}); home_array.push({rate:'7.06%',name:'$75K Home Eq',jsParam:'75kHomeEq',change:'U',lweek:'6.82%'}); var cdmma_array = []; cdmma_array.push({rate:'0.63%',name:'MMA',jsParam:'mma',change:'D',lweek:'0.65%'}); cdmma_array.push({rate:'0.70%',name:'$10K MMA',jsParam:'mma10k',change:'D',lweek:'0.72%'}); cdmma_array.push({rate:'0.63%',name:'6 month CD',jsParam:'cd6mo',change:'S',lweek:'0.63%'}); cdmma_array.push({rate:'0.90%',name:'1 yr CD',jsParam:'cd1yr',change:'S',lweek:'0.90%'}); cdmma_array.push({rate:'2.01%',name:'5 yr CD',jsParam:'cd5yr',change:'U',lweek:'2.00%'}); Rate data providedby Bankrate.com View rates in your area   Find personalized rates: Card type Credit type Card issuer

Today's featured rates:

30 yr fixed mtg, 0 points, Los Angeles, CA, APR 4.500% 30 yr fixed mtg, 0 points, Los Angeles, CA, APR 4.625% 30 yr fixed, 0 points refi, Elizabeth, NJ, APR 4.625% 30 yr fixed, 0 points refi, Elizabeth, NJ, APR 4.625% 15 yr fixed mtg, 0 points, Orlando, FL, APR 3.750% 15 yr fixed mtg, 0 points, Orlando, FL, APR 3.875% 5/1 ARM, 0 points, Houston, TX, APR 3.000% 5/1 ARM, 0 points, Houston, TX, APR 3.000% 30 yr jumbo, 0 points, Cleveland, OH, APR 5.375% MMA , Los Angeles, CA, APY 1.09% $10K MMA , Tampa, FL, APY 1.09% 6 month CD, Metro, NY, APY 1.09% 6 month CD, Metro, NY, APY 0.50% 1 yr CD, Houston, TX, APY 1.29% 1 yr CD, Houston, TX, APY 1.01% 5 yr CD, Los Angeles, CA, APY 2.40% 5 yr CD, Los Angeles, CA, APY 2.15% CA, $30K home equity loan, APR 7.99% CA, $30K home equity loan, APR 8.49% TX, $50K home equity loan , APR 8.49% PA, $75K home equity loan , APR 4.99% PA, $75K home equity loan , APR 6.89% NY, $30K HELOC , APR 5.24% NY, $30K HELOC , APR 5.49% FL, $50K HELOC, APR 5.49% Discover Card, APR 12.99% - 20.99% (Variable)* Discover Card, APR 11.99% - 22.99% (Variable)* Capital One, APR 11.9% - 19.9% (V) Discover Card, APR 11.99% - 20.99% (Variable)* Chase, APR 13.24%-19.24% (Variable)* Capital One, APR 12.9% - 20.9% (V) Capital One, APR 19.8%(V) Chase, APR 12.24% Variable* MetaBank, APR * Discover Card, APR 12.99% - 20.99% (Variable)* *Rates subject to change cnnad_createAd("204671","http://ads.cnn.com/html.ng/site=cnn_money&cnn_money_position=336x280_quigo&cnn_money_rollup=personal_finance&cnn_money_section=quigo&cnn_money_subsection=galleries¶ms.styles=fs","280","336"); Special Offer: chooseMagOFIE(); Home | Contact Us | Advertise with Us | Corrections | Career Opportunities | Site Map RSS | Email Delivery | Portfolio | Podcasts | Mobile | Widgets | User Preferences | Special Sections chooseFortEKeyFooter(); | Magazine Customer Service | Download Fortune Lists | Reprints | Conferences | Business Leader Council #marketCopyright td{color:#e2e2e2 !important;font-size:10px;} var urlPre="http://markets.money.cnn.com/"; var cnnDomain="http://money.cnn.com/"; var cookieDomain="cnn.com"; var tzOffset= -240; //var tzOffset= -300; try{ msQueueManager.init('requestFrame', ms_blankURL); }catch(e){} Please create a screen name to access this feature.

Screen name (Select one with 3-12 characters; Numbers and letters only)

Forgot password

Enter your e-mail address below and we will send you an e-mail with a link and code to reset your password.

E-mail

Already have the reset code?

Password selection

E-mail

Reset code

New password

Log in & let's get started!

E-mail

Password

Forgot password?

Remember me for two weeks

Not a member yet?

Sign up now for a free account Sign up or log in

Screen name

Select one with 3-12 characters;Numbers and letters only

E-mail

Make sure you typed it correctly.You will receive an e-mail to validate your account

Password

Make it 6-10 characters, no spaces

Type what you see in the grey box

If you can't read this, try another one. Yes, I would like to receive occasional CNNMoney member updates about new features and special offers.

CNNMoney will use the information you submit in a manner consistent with our Privacy Policy. By clicking on "sign up" you agree with CNNMoney's Terms of Service and Privacy Policy and consent to the collection, storage and use of this information in the U.S. subject to U.S. laws and regulations. (learn more)

For our international users, please be aware that the information you submit when registering for our services is collected in the United States of America. In addition to being subject to our Privacy Policy, the collection, storage, and use of your data will be subject to U.S. laws and regulations, which may be different from the laws and regulations of your home country. By registering for this service, you are consenting to this collection, storage, and use.

We're Sorry!

This service is temporarily unavailable. Please try again soon.

 

 

Thanks!

Please check your e-mail and click the link to confirm your membership. Then, you'll be ready to participate in all activities and conversations on our site.

Go to your Profile page

Newsletters Breaking Financial News

Be the first to know when there is breaking financial news with timely alerts delivered straight to your inbox.

Send to: Apple 2.0

Fortune's Philip Elmer-DeWitt brings you Mac news from outside the reality distortion field.

Send to: Ask Annie

Fortune columnist Anne Fisher answers your career-related questions.

Send to: Ask the Expert

Money Magazine's Walter Updegrave answers readers' toughest financial questions.

Send to: Read Full Article »