My pick for 2012 was Lennar (LEN); that selection stemmed from my belief that the housing sector was poised for a big turnaround.
For 2013, I see another much-hated group ready to turn up � financials. That�s why I�m making Bank of America (BAC) my pick of the year.
As a group, the big banks have now had five full years to shape up. They�ve been helped along by an incredibly easy Federal Reserve (now buying $40 billion of mortgage debt every month) and, ironically, a housing rebound, which has improved many firms� balance sheets.
And, though most investors don�t know it, earnings for the group are buoyant.
As for Bank of America itself, it�s likely to pass an upcoming stress test and finally be able to return $5 billion to $10 billion to shareholders through a dividend boost and share repurchases.
Throw in the fact that earnings are projected to leap 129% next year to 96 cents per share, and the fact that the stock actually hit new yearly highs in December (even as the market was struggling), and it�s clear to me that the turnaround is underway.
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