Everyone wants to begin the new year 2012 with a handsome return from their investments, and as many think about reshuffling their portfolios, I bring you my analysis of stocks ranging from oil to radio manufacturers and financial managements companies, which are going to lead the way to higher returns in 2012. Specifically, these companies are trading at a significant discount to their fair values on an earnings per share basis.

Baker Hughes Incorporated (BHI) is a worldwide supplier of oilfield products, technology and services for the drilling, production, refining and processing of oil and natural gas, with operations in more than 80 countries. BHI operates under five reporting segments in terms of geography– North America, Latin America, South America, Middle East/Asia Pacific and Europe/Africa/Russia. The revenues have shown a consistent increase over the last 10 quarters with an EPS growth rate of 175% in the last 4 quarters alone on a TTM basis.

A $27 billion enterprise, BHI trades at a price earnings multiple of 19.30, well below the industry average of 25.78 times. BHI has delivered a quarterly revenue growth of 40% as compared to 25%, for its closest competitor, Weather Ford International (WFT). BHI is currently trading at $57.99, around the middle of its 52-week range of $81- $41.91, and with a 5-year average return on equity of 19.35%, it beats the industry average of 15.92%.

BlackRock Inc (BLK) is an investment and risk management company providing services to a variety of clients, including but not limited to institutions, retail investors and even HNI individuals with a focus on customized solutions. To continue reading, click here