In today’s bubble chart, we look at several views of Bank of America’s Top 10 stock picks for 2012. Source: Bank of America, Equity and Quant Strategy In the first bubble chart, the x-axis displays performance year-to-date (%); the y-axis displays current price; and the bubble area represents the latest reported profit margins. Since Apple is priced so much higher than the rest, the next chart zooms in on the 9 lower-priced stocks. Interesting to note the cluster of relatively high 2011 performance/lower cost stocks in the lower right quadrant
Bank of America's top 10 picks for 2012 Bubble Chart
In the next chart, the x-axis displays current P/E; the y-axis displays the current beta (volatility); and the bubble area represents the latest reported profit margins. Lincoln National has the highest volatility and the lowest P/E of the group with mid-range profit margins. The majority of the equities in this group are in the lower right quadrant of relatively higher P/E’s and lower betas. Eli Lily looks particularly attractive in these charts with low volatility, low P/E, high margins, and good growth in 2011.
Bank of America's top 10 picks for 2012 Bubble Chart