S - Sprint Nextel Corp.

[S] Sprint Nextel Corp. - Hot Stocks to Buy Entry Price $5 - $5.50

• Risk level: 5
• Profit potential: 7
• Price Target 6 months: $7 - $8
• Price Target 12 months: $10 - $12
• We expect Sprint to outperform the market in the short and long term.

Today we are selecting Sprint Nextel Corp. (S) as a hot stocks to buy. Since bottoming out on November 20th, 2008 at the price of $1.37 per share, Sprint has more than quadrupled in price to $5 per share. The share price has somewhat been stagnant the past month and a half as share holders await the recently released Palm Pre. The debut of the Palm Pre on June 8th has to be considered successful as it is expected to sell over 50,000 units in it’s first day of release. For the quarter, Palm expects to sell over450,000 units.  This is good news for Sprint as roughly 80-90% of all Palm Pre customers are expected to use Sprint’s service.

The additional customers gained from the Palm Pre release should add to the bottom line for Sprint when they report in the third quarter later this year. We see Sprint as a well established company that took a big punch in November of 08 and withstood it. Sprint is still in it’s early stage of recovery and with some bumps along the way, we expect the stock to eventually get above $12 per share over the next 12 months.

We wish you luck on your investments and as always do your own research prior to purchasing or selling a stock. We make recommendations based on our own research and this site is solely for the purpose of entertainment reading. Thank you for visiting Hot Stocks to Buy.