Four Top Stocks to Buy as Wall Street Evolves

The Best Defense Is a
Strong Offense

Wall Street is evolving right now. It’s realizing that buying financials on the hope that they would quickly return to their previous glory was
a bad idea.

Many of those stocks have once again lost all the gains they have built up, and investors are swearing them off in an attempt to not be burned again.
Now they are once again looking for real companies with strong products, leadership and earnings — exactly the kind of companies featured here in
this list.

With earnings season shifting into high gear each of these stocks is positioned to move higher. So take advantage of this small window of market
consolidation to get fully invested in the market because I am convinced that the market is improving each and every day.

Here are four of the best stocks to buy now.

NEXT: Top Stock 1 – American Italian Pasta Company (AIPC)

Top Stock 1 – American Italian Pasta Company (AIPC[2])

American Italian Pasta Company (AIPC[2]) is the largest maker of dry pasta in North America and offers
some 300 different pasta shapes from everything from angel hair to ziti. It has seen strong sales as American consumers eat out less and spend dinnertime
at home.

This stock has jumped an impressive 19% since the beginning of June, and is my favorite Emerging
Growth stock. Recently, American Italian Pasta announced that its latest quarterly earnings rose 142% to $26.2 million or $1.21 per share
compared with $9.4 million or 50 cents per share in the same quarter a year earlier.

The stock is a great buy for the current market and should post another breakout earnings report in just a few weeks.

NEXT: Top Stock 2 – Green Mountain Coffee Roasters (GMCR)

Top Stock 2 – Green Mountain Coffee Roasters (GMCR[3])

Green Mountain Coffee Roasters (GMCR[3]) offers about 180 varieties of coffee, cocoa and tea, which
it sells to wholesale customers including supermarkets, convenience stores, resorts and office-delivery services. As caffeine junkies brew their own
coffee instead of dropping $5 for a latte, GMCR has been flying high.

In its latest quarter, Green Mountain’s earnings rose 117.4% to $13 million or 50 cents per share compared with $6 million or 23 cents per share
in the same quarter a year ago. 

This stock should rally in anticipation of another strong report on July 29. Buy now!

NEXT: Top Stock 3 – Lincoln Educational Services (LINC)

Top Stock 3 – Lincoln Educational Services (LINC[4])

Whenever we see new claims for unemployment rise, education leader Lincoln Educational Services (LINC[4]) rallies
because it means that a large number of Americans will be out of work – and many of those laid-off workers will be going back to school to polish
their resumes or change careers. And with total unemployment likely to top out above 10% nationwide, LINC is a great way to capitalize on this trend.

In the first quarter, LINC beat analysts’ earnings per share estimate by a whopping 267%. I expect similar performance in the upcoming quarter because
in the last 60 days, analysts have revised their EPS forecast for LINC 171% higher. Positive analyst revisions typically precede earnings surprises
so this should be another fantastic quarter.

Not only does LINC have strong fundamentals, but it was listed on this week’s Investor’s Business Daily list of 100 top performers. Even
as the economy faces significant headwinds, demand for education continues to rise, especially for many of the short-term programs LINC offers.

Lincoln’s future is also promising due to the fact that the Obama administration wants to inject billions of dollars over the next decade into the
for-profit education sector. This stock is a great buy.

NEXT: Top Stock 4 – Neutral Tandem Inc. (TNDM)

Top Stock 4 – Neutral Tandem Inc. (TNDM[5])

Neutral Tandem Inc. (TNDM[5]) provides third-party interconnection services to competitive carriers
via tandem switches, which allow wire-line, wireless and broadband phone providers to exchange traffic between networks without direct connections.  Neutral
Tandem offers services in more than 60 U.S. metropolitan markets. The company’s customers include Sprint Nextel, Comcast Cable and AT&T. 

In the first quarter, Neutral Tandem’s earnings rose 125% to $9 million or 27 cents per share compared with $4 million or 12 cents per share in
the same quarter a year ago. During the same period, its sales rose 45.8% to $38.2 million. The analyst community expected earnings of 23
cents per share on sales of $36.4 million, so the company posted a 17.4% earnings surprise and a 4.9% sales surprise. 

Looking forward, Neutral Tandem expects its 2009 sales to range between $158 million to $165 million, up from its prior forecast of $151 million
to $158 million. Wedbush Morgan recently upgraded the company from a “Hold” to a “Buy” And I couldn’t agree more. 

NEXT: 25 Stocks to Sell Now

25 Stocks to Sell Now

As earning season kicks into full gear, fundamentally superior stocks will once again prove they are still growing even in these challenging times
by posting tremendous quarterly earnings.

As a result, investors will flock to them as a safe haven amid the chaos – and leave fundamentally weaker stocks behind!

There are many big name stocks out there that are not going to help you reach your financial goals this year and you should avoid them at all costs.
The following 25 stocks are rated D or F in my exclusive Portfolio Grader stock
rating tool.

If you own any of these stocks that flunk the Portfolio Grader test, do not wait for earnings.

Sell these ticking time bombs immediately.

1. Alcoa (AA[6])
2. Allstate (ALL[7])
3. Black & Decker (BDK[8])
4. Boeing (BA[9])
5. Campbell Soup Co. (CPB[10])
6. Caterpillar Inc. (CAT[11])
7. CBS (CBS[12])
8. Chevron (CVX[13])
9. ConocoPhillips (COP[14])
10. Costco (COST[15])

NEXT: Stocks 11-25 to Sell Now

15 More Stocks to Sell Now

1. Dell (DELL[16])
2. DuPont (DD[17])
3. eBay (EBAY[18])
4. ExxonMobil (XOM[19])
5. FedEx (FDX[20])
6. General Electric (GE[21])
7. General Motors (GM[22])
8. MasterCard (MA[23])
9. Panasonic Corp. (PC[24])
10. Procter & Gamble (PG[25])
11. Rick’s Cabaret (RICK[26])
12. Sony Corp. (SNE[27])
13. Washington Post (WPO[28])
14. Xerox (XRX[29])
15. Yahoo (YHOO[30])

Now is the time to unload these companies before they really get hammered. Sell these losers now!