JPMORGAN: Here Are The 19 Best Stocks To Play The Europe Comeback

madrid bourse spain stock exchangeTraders talk at the Madrid stock exchange.

It’s been a while since we’ve heard the words “Europe” and “crisis” used in the same sentence. Indeed, new purchasing managers index (PMI) figures appear to be the green shoots of an economic recovery.

All of this comes as the emerging market (EM) countries like China have slowed down considerably.

Investors who believe the tides are beginning to turn will want to adjust their investment exposures before they miss the boat.

“More than a few clients have expressed interest in finding companies with exposure to Europe and less exposure to EM,” said Tom Lee, JP Morgan’s top equity strategist.

“Granted, Europe is not likely to grow at the pace of EM, but a positive turn is still a positive turn,” added Lee.

Lee and his team looked at over 200 companies housed in North America that report their geographic exposure to both Europe and the EMs.

They keyed in on 19 companies with revenue exposure to Europe greater than 25% and revenue exposure to EM less than 10%. Collectively, the stocks have an average upside of 6% to JP Morgan analysts’ target price.

19. EdwardsLifesciencesCo

Ticker: EW

Industry: Health care equipment

Target Price: $64

European revenue exposure: 29%

EM revenue exposure: 0%

Edwards Lifesciences beat expectations in Q2 as earnings per share increased 22.39%. Revenue also jumped 7.26% from the year-earlier quarter, to $517 million.

Source: J.P. Morgan

18. Carnival Corp.

Ticker: CCL

Industry: Hotels, resorts & cruise lines

Target Price: $34

European revenue exposure: 35%

EM revenue exposure: 10%

Beset with high-profile disasters at sea, profits have lagged for Carnival Cruise line. The PR nightmares: In February, 3,000 passengers were left without functioning toilets for days. And in January 2012, 32 were killed in a shipwreck off the Italian coast.

Source: J.P. Morgan

17. Biogen Idec Inc.

Ticker: BIIB

Industry: Biotechnology

Target Price: $210

European revenue exposure: 30%

EM revenue exposure: 2%

Biogen reported Q2 revenues of $1.7 billion, an increase of 21% compared with the year-earlier quarter.

Source: J.P. Morgan

16. Priceline.com

Ticker: PCLN

Industry: Internet retail

Target Price: $830

European revenue exposure: 60%

EM revenue exposure: 0%

Priceline will announce its Q2 revenues after market close on August 8th. Shares of Priceline are up almost 40% year to date.

Source: J.P. Morgan

15. PVH Corp.

Ticker: PVH

Industry: Apparel, accessories & luxury

Target Price: $126

European revenue exposure: 27%

EM revenue exposure: 0%

PVH -- the apparel company that owns brands Calvin Klein, Tommy Hilfiger, Izod, and others -- drove impressive Q1 earnings ($1.9 billion in revenue) after acquiring the textile company Warnaco.

Source: J.P. Morgan

14. Paccar Inc.

Ticker: PCAR

Industry: Construction & farm machinery

Target Price: $55

European revenue exposure: 25%

EM revenue exposure: 0%

Paccar posted $4.3 billion in consolidated sales and revenues in Q2, with a net income of $291.6 million.

Source: J.P. Morgan

13. Ansys Inc.

Ticker: ANSS

Industry: Application software

Target Price: $80

European revenue exposure: 32%

EM revenue exposure: 0%

Software company ANSYS will report Q2 earnings on August 1st. Shares of ANSYS are up 11% year to date.

Source: J.P. Morgan

12. Molson Coors Brewing

Ticker: TAP

Industry: Brewers

Target Price: $50

European revenue exposure: 31%

EM revenue exposure: 0%

The brewer will pay a dividend of $0.32 per share on September 16th.

Source: J.P. Morgan

11. Exxon Mobil Corp.

Ticker: XOM

Industry: Integrated oil & gas

Target Price: $96

European revenue exposure: 29%

EM revenue exposure: 0%

ExxonMobil is set to release its Q2 earnings on August 1st. But with lower natural gas prices in the US, analysts expect the company to report $1.90 per share, its lowest since December 2010.

Source: J.P. Morgan

10. Coca-Cola Enterprises

Ticker: CCE

Industry: Soft drinks

Target Price: $38

European revenue exposure: 100%

EM revenue exposure: 0%

Coca-Cola's revenues decreased to $2.16 billion in Q2, down 2.36% from the year-earlier quarter.

Source: J.P. Morgan

9. LyondellBasell Industries

Ticker: LYB

Industry: Commodity chemicals

Target Price: $70

European revenue exposure: 31%

EM revenue exposure: 0%

The Dutch-based oil refinery company's Q2 net income grew 21% but still fell below analyst expectations. Revenue dropped 1% to $11.1 billion from $11.25 billion.

Source: J.P. Morgan

8. Invesco Ltd.

Ticker: IVZ

Industry: Asset management & custody

Target Price: $34

European revenue exposure: 35%

EM revenue exposure: 2%

Analysts are reportedly optimistic about Invesco's Q2 earnings, projecting a profit of $0.51 a share, a jump from $0.41 per share from a year ago.

Source: J.P. Morgan

7. BlackRock Inc.

Ticker: BLK

Industry: Asset management & custody

Target Price: $295.50

European revenue exposure: 26%

EM revenue exposure: 5%

Aladdin, BlackRock's risk management system, manages an astonishing $14 trillion of assets worldwide. It has achieved an annual growth rate of 17% over the past 5 years.

Source: J.P. Morgan

6. Phillips 66

Ticker: PSX

Industry: Oil and gas refining & marketing

Target Price: $64

European revenue exposure: 26%

EM revenue exposure: 0%

Phillips 66 subsidiary 'Phillips 66 Partners LP' recently launched its own IPO. It began trading on the NYSE under the ticker PSXP last week.

Source: J.P. Morgan

5. eBay

Ticker: EBAY

Industry: Internet software & services

Target Price: $60

European revenue exposure: 25%

EM revenue exposure: 0%

eBay posted Q2 revenues at $3.9 billion, a 14% increase form the year-earlier quarter.

Source: J.P. Morgan

4. St. Jude Medical Inc.

Ticker: STJ

Industry: Health care equipment

Target Price: $60

European revenue exposure: 26%

EM revenue exposure: 8%

St. Jude Medical reported net sales of $1.403 billion in Q2, down slightly from $1.410 billion in the year-earlier quarter.

Source: J.P. Morgan

3. Akamai Technologies Inc.

Ticker: AKAM

Industry: Internet software & services

Target Price: $52

European revenue exposure: 28%

EM revenue exposure: 0%

Cloud computing company Akami netted $378 million in Q2 revenue, up 14% year-over-year.

Source: J.P. Morgan

2. Gilead Sciences Inc.

Ticker: GILD

Industry: Biotechnology

Target Price: $80

European revenue exposure: 30%

EM revenue exposure: 0%

Biopharmaceutical research company Gilead Sciences posted $2.77 billion in total revenues in Q2 2013, up 15% from the year-earlier quarter.

Source: J.P. Morgan

1. Newmont Mining Corp.

Ticker: NEM

Industry: Gold

Target Price: $41

European revenue exposure: 73%

EM revenue exposure: 9%

Lower gold prices hit Newmont last quarter, but the company still posted revenues of $2.0 billion. 'As a result of lower gold and copper prices and in accordance with US GAAP, second quarter net income was adjusted by $1.8 billion, net of taxes and minority interest, for impairments and revaluation,' they wrote in a statement.

Source: J.P. Morgan

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