Photo: Daniel Goodman / Business Insider
Citigroup recently published its massive 112-page Global Equity Quarterly report. Robert Buckland, Citi’s Chief Global Equity Strategist, included the firm’s prized “Global Favoured Stock List,” a compilation of the very best stock picks from each of the firm’s top regional strategists.
What you get is a globally diverse group of stocks that include banks, power suppliers and wine sellers.
Description: Full-service retail and investment bank
Citi's Comments: 'Well positioned for rural growth in China.'
Description: Oil and natural gas producer
Citi's Comments: 'Below average sensitivity to falling gas prices. Sound balance sheet.'
Description: Oil, natural gas and metals producer
Citi's Comments: 'Potential for further capital returns. Outlook for China growth is for a slowdown, not collapse.'
Description: Digital and electronic equipment manufacturer
Citi's Comments: 'Buying back shares. Beneficiary of a weaker Yen.'
Description: Financial services firm
Citi's comments: 'Underappreciated earnings stream.'
Description: Auto manufacturer
Citi's comments: 'Cheapest of the German autos. Handicaps beginning to subside.'
Description: Produces and sells electricity.
Citi's comments: 'Normalising hydro outlook. Spanish uncertainty already discounted.'
Description: Machine tools manufacturer
Citi's Comments: 'Leveraged to strong demand from rest of Asia. Continuous focus on cost cutting. Net cash on balance sheet.'
Description: Freight transportation and logistics firm
Citi's Comments: 'Leader in a consolidating industry. Solid pricing power. Sound balance sheet.'
Description: Manufactures and markets pharmaceutical and health-related products
Citi's Comments: 'Underappreciated operating leverage. Aggressive capital distributor.'
Description: Investment banking and financial services firm
Citi's Comments: 'Attractively priced. Well positioned. Relatively clean balance sheet.'
Description: Semiconductor manufacturer
Citi's Comments: 'Orders likely to trough in second half. Outsourcing has allowed for a rise in free cash flow. Most undervalued stock in US Semi sector.'
Description: Luxury goods producer
Citi's Comments: 'Less cyclical than commonly perceived. Strong balance sheet. Providing the highest returns in the industry.'
Description: Wine and spirit distributor
Citi's Comments: 'Balance sheet risk has receded. Large emerging market exposure. Strong earnings growth, despite weak European demand.'
Description: Manufactures digital wireless communications systems
Citi's Comments: 'Beneficiary of Smartphone adoption. High margins are sustainable. Large cash pile.'
Description: Manufactures luxury vehicles
Citi's Comments: 'Increasing proportion of aftermarket revenues. Lower cyclicality warrants higher valuation ratios. Strong balance sheet, pension issues resolved.'
Description: Manufactures electronic equipment
Citi's Comments: 'Diversified revenue stream. Better than industry margins.'
Description: Produces and markets natural gas
Citi's Comments: 'Double digit dividend yield. Downstream upgrade project will improve profitability. Dollar denominated cash pile.'
Description: Powerplant and mine developer
Citi's Comments: 'Emerging market focus. Beneficiary of credit spread tightening. Cash flows returned to shareholders.'
Description: Software and IT developer
Citi's Comments: 'Full service model. Well positioned for growing demand for IT outsourcing.'