3 Stocks Ready to Rebound

With current market volatility and large corporation failures on a daily basis it is hard where to decide to invest your money. As a result my key company aspect to look at is PROFITS.  Sticking with profitable companies in the long-term will never fail. The key component is to look at a companies Return on Equity.  This is a profitability ratio which will compare a companies net income to shareholders' equity to gauge how a company employs owners' capital.  If a company is not reinvesting money then you should worry about the long-term aspect and how much the company can actually grow.  On the contrary if they don't have enough cash on hand it will be impossible to expand their resources.  So when judging a stock check the efficiency of the Return on Equity and make sure in most cases than it is 15% or better.  In this case i have picked three solid combines which are over 20%.  Based on this statistic the rebound stocks i recommend are:

1.  Google (GOOG) - This software giant continues to grow despite tough times and has put up a 21% Return on Equity.  It has bottomed out from last years highs but with strong earnings numbers expect it to soar within the next few years.  $450-$500 is a reasonable expectation for the end of 2009.

2.  Apple (AAPL) - The infamous IPhone maker has put up solid profit margins and has shown resilience in current times due to strong consumer base.  I am an avid Mac/IPhone user and love the company especially with 27% ROE.   Expect the stock to be hovering around $125-$135 come end of the year.

3.  Coach (COH) - Yes this is a high-end retailer, however the rich continue to purchase Coach products as if the recession never hit.  With a whopping 46.5% ROE this company is doing outstandingly well.  Expect end of the year numbers around $18-$20.