Ian Wyatt
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Chuck Carlson
The DRIP Investor
Jim Stack
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Hedge Fund Trader

Top stocks 2013: IHS Inc.


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by Tyler Laudnon, editor Pay Dirt

IHS Inc. (IHS) is a specialized information company operating in the commodities industry; the stock is also our top pick for the coming year.

The company has been growing since 1959 for many of the same reasons that IBM continues to excel. Business demand for energy, transportation and economic data collection and analysis is constant.

The company is our top pick for 2013. The company, which boasts a $6.3 billion market cap, focuses on six key areas: Energy (33% of revenues), Strategy & Analysis (30% of revenues), Product Design (17% of revenues), and Sustainability, Supply Chain and Other Services (6% to 8% of revenues each).

As part of the company's energy portfolio, IHS owns production information on more than 90% of the world's oil and gas wells.

If you’re a company that wants to drill for oil, you're more than likely relying on at least some information from IHS.

Because of its reliable growth trajectory and high free cash flow, IHS tends to trade at a premium to the S&P 500. A weaker-than-expected Q3 hurt the shares, but its robust business model should help support a swift recovery in 2013.

Learn more about this financial newsletter at Tyler Laundon's Pay Dirt.

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