Top 5 Long Term Stocks To Watch Right Now

In this segment of The Motley Fool's everything-financials show,�Where the Money Is, banking analysts Matt Koppenheffer and David Hanson place a bet on which bank stock, Wells Fargo or JPMorgan Chase, will outperform after releasing its second-quarter earnings on Friday morning.

While the bet is short-term in nature, Matt and David view the reasons behind their picks as long term trends.

Will tomorrow's reports drive the market higher?
Banks are set to begin reporting second-quarter earnings over the next few weeks. Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's�new report. It's free, so�click here to access it now.

To follow The Fool's coverage of financial stocks,�click here!

Top 5 Long Term Stocks To Watch Right Now: Capex SA (CAPX)

Capex SA is an Argentina-based company primarily engaged in the energy sector. The Company�� main activities include the generation and sale of electric energy; the exploration and exploitation of oil and gas, and the production, distribution and marketing of propane, butane and gasoline. The Company operates a liquefied petroleum gas (LPG) plant which is located in the province of Neuquen. As of December 31, 2011, the Company owned such subsidiaries as Hychico SA and Servicios Buproneu SA. Advisors' Opinion:

• [By Dividends4Life]

  Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CVX is trading at a discount to only 3.) above. The stock is trading at a 44.9% premium to its calculated fair value of $82.00. CVX did not earn any Stars in this section. Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description: 1. Free Cash Flow Payout 2. Debt To Total Capital 3. Key Metrics 4. Dividend Growth Rate 5. Years of Div. Growth 6. Rolling 4-yr Div. > 15% CVX earned two Stars in this section for 2.) and 3.) above. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. CVX earned a Star for having an acceptable score in at least two of the four Key Metrics measured. The company has paid a cash dividend to shareholders every year since 1912 and has increased its dividend payments for 27 consecutive years. Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description: 1. NPV MMA Diff. 2. Years to > MMA The NPV MMA Diff. of the $256 is below the $800 target I look for in a stock that has increased dividends as long as CVX has. The stock's current yield of 3.37% exceeds the 3.31% estimated 20-year average MMA rate. Memberships and Peers: CVX is a member of the S&P 500, a Dividend Aristocrat, a member of the Broad Dividend Achievers��Index and a Dividend Champion. The company's peer group includes: BP plc (BP) with a 4.7% yield, Exxon Mobil

Top 5 Long Term Stocks To Watch Right Now: Energy Select Sector SPDR Fund (XLE)

Energy Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond to the price and yield performance of the Energy Select Sector of the S&P 500 Index (the Index). The Index includes companies that primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services.

The Fund utilizes a passive or indexing investment approach to invest in a portfolio of stocks that seek to replicate the Index. The Fund�� investment advisor is SSgA Funds Management, Inc.

Advisors' Opinion:

• [By Claudia Assis]

  The Guggenheim Solar exchange-traded fund (TAN) , which focuses on solar companies, gained 3.8%. The SPDR Energy Select Services (XLE) , focusing on energy companies, was off 0.4%.

• [By Craig Jones]

  © 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Related Articles (XLE) Dan Nathan Sees Unusual Options Activity In Energy Select Sector SPDR (ETF) Energy ETFs: Bargains Or Falling Knives? Fast Money Picks For October 15 Fast Money Picks For October 7 - Exxon Mobil Corporation, EMC Corporation And More Dan Nathan's Energy
• [By Claudia Assis]

  The SPDR Energy Select Sector (XLE) �exchange-traded fund, which focuses on energy names, retreated 0.9%.

Best Gas Utility Stocks To Own Right Now: Tower Group Inc.(TWGP)

Tower Group, Inc., through its subsidiaries, provides commercial, specialty, and personal property and casualty insurance products and services to businesses in various industries and to individuals in the United States. The company offers commercial multiple-peril packages that comprise property, liability, business interruption, equipment breakdown, fidelity, and inland marine coverages; workers? compensation policies; commercial and personal automobile policies; personal packages; and mono-line commercial general liability and commercial umbrella policies for individuals and business owners. It also writes commercial fire and allied lines policies for the protection of commercial buildings; and inland marine insurance protection for the property of businesses that is not at a fixed location and for items of personal property that are easily transportable, including builders risk, contractors? equipment and installation, domestic transit and transportation, fine arts, property floaters, and leased property. In addition, the company provides homeowners and personal dwellings policies, which offer property and liability coverages for one and two-family, and owner-occupied residences; and additional coverage to the homeowner for personal umbrella and personal inland marine. Further, it offers various services, such as underwriting, claims administration, operational and technology services for other insurance companies. The company markets its products and services through its independent retail, wholesale, and program underwriting agents. Tower Group, Inc. was founded in 1989 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Jeremy Bowman]

  So what: Shares traded as high as $28.99 today but closed at $28.91, more than 1% below the buyout price. Fairfax, a subsidiary of Canadian Insurer Prem Watsa, plans to sell American Safety's reinsurance unit for $59 million to Tower Group International (NASDAQ: TWGP  ) , which gained 2.4% on the day. The deal will give Watsa $480 million to invest, and the company has a track record of growing through acquisitions. American Safety expects the transaction to close in the fourth quarter.

• [By Ben Levisohn]

  And save a spot in your hearts Tower Group International (TWGP), which dropped an S&P-1500 worst 41% after the insurer had to set aside far more cash to cover losses than investors had expected, and Ariad Pharmaceuticals (ARIA), which plunged 78% after the FDA halted one of its drug trials because the medicine in question was too dangerous. They serve as a reminder that no matter the shenanigans among politicians, fundamentals will almost always have the last say.

• [By Ben Levisohn]

  Tower Group International (TWGP) has plunged 28% to $5.35 after the insurance company increased the amount of cash it needed to set aside well above expectations and Fitch downgraded its credit rating.

Top 5 Long Term Stocks To Watch Right Now: Hot Topic Inc.(HOTT)

Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.

Advisors' Opinion:

• [By Marshall Hargrave]

  In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.

Top 5 Long Term Stocks To Watch Right Now: Crown Castle International Corporation (CCI)

Crown Castle International Corp., through its subsidiaries, owns, operates, and leases towers and other wireless infrastructure primarily in the United States and Australia. Its infrastructure includes distributed antenna system (DAS) networks, as well as rooftop installations. The company involves in the rental of antenna space of its towers to wireless communications companies. It also provides network services relating to its towers, which primarily include antenna installations and subsequent augmentations, as well as additional services, such as site acquisition, architectural and engineering, zoning and permitting, other construction, and other services related network development. As of December 31, 2010, it owned, leased, or managed approximately 23,900 towers, including 43 completed DAS networks. The company was founded in 1994 and is headquartered in Houston, Texas.

Advisors' Opinion:

• [By Anders Bylund]

  This international focus sets American Tower apart from rivals Crown Castle (NYSE: CCI  ) and SBA Communications (NASDAQ: SBAC  ) .