CITI PRESENTS: The 20 Best Stocks In The World

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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.

Agricultural Bank of China

Country: China

Ticker: 601288

Description: Full-service retail and investment bank

Citi's Comments: 'Well positioned for rural growth in China.'

Source: Citi

Apache

Country: USA

Ticker: APA

Description: Oil and natural gas producer

Citi's Comments: 'Below average sensitivity to falling gas prices. Sound balance sheet.'

Source: Citi

BHP Billiton

Country: Australia/UK

Ticker: BHP

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.'

Source: Citi

Canon

Country: Japan

Ticker: CAJ

Description: Digital and electronic equipment manufacturer

Citi's Comments: 'Buying back shares. Beneficiary of a weaker Yen.'

Source: Citi

Charles Schwab

Country: USA

Ticker: SCHW

Description: Financial services firm

Citi's comments: 'Underappreciated earnings stream.'

Source: Citi

Daimler

Country: Germany

Ticker: DAI

Description: Auto manufacturer

Citi's comments: 'Cheapest of the German autos. Handicaps beginning to subside.'

Source: Citi

Endesa Chile

Country: Chile

Ticker: EOC

Description: Produces and sells electricity.

Citi's comments: 'Normalising hydro outlook. Spanish uncertainty already discounted.'

Source: Citi

Fanuc

Country: Japan

Ticker: 6954

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.'

Source: Citi

Fedex

Country: USA

Ticker: FDX

Description: Freight transportation and logistics firm

Citi's Comments: 'Leader in a consolidating industry. Solid pricing power. Sound balance sheet.'

Source: Citi

GlaxoSmithKline

Country: USA

Ticker: GSK

Description: Manufactures and markets pharmaceutical and health-related products

Citi's Comments: 'Underappreciated operating leverage. Aggressive capital distributor.'

Source: Citi

Goldman Sachs

Country: USA

Ticker: GS

Description: Investment banking and financial services firm

Citi's Comments: 'Attractively priced. Well positioned. Relatively clean balance sheet.'

Source: Citi

Lam Research

Country: USA

Ticker: LRCX

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.'

Source: Citi

LVMH

Country: France

Ticker: MC

Description: Luxury goods producer

Citi's Comments: 'Less cyclical than commonly perceived. Strong balance sheet. Providing the highest returns in the industry.'

Source: Citi

Pernod-Ricard

Country: France

Ticker: RI

Description: Wine and spirit distributor

Citi's Comments: 'Balance sheet risk has receded. Large emerging market exposure. Strong earnings growth, despite weak European demand.'

Source: Citi

Qualcomm Inc

Country: USA

Ticker: QCOM

Description: Manufactures digital wireless communications systems

Citi's Comments: 'Beneficiary of Smartphone adoption. High margins are sustainable. Large cash pile.'

Source: Citi

Rolls-Royce

Country: UK

Ticker: RR

Description: Manufactures luxury vehicles

Citi's Comments: 'Increasing proportion of aftermarket revenues. Lower cyclicality warrants higher valuation ratios. Strong balance sheet, pension issues resolved.'

Source: Citi

Samsung

Country: Korea

Ticker: 005930

Description: Manufactures electronic equipment

Citi's Comments: 'Diversified revenue stream. Better than industry margins.'

Source: Citi

Surgutneftegas

Country: Russia

Ticker: SNGS

Description: Produces and markets natural gas

Citi's Comments: 'Double digit dividend yield. Downstream upgrade project will improve profitability. Dollar denominated cash pile.'

Source: Citi

AES Corp.

Country: USA

Ticker: AES

Description: Powerplant and mine developer

Citi's Comments: 'Emerging market focus. Beneficiary of credit spread tightening. Cash flows returned to shareholders.'

Source: Citi

Wipro

Country: India

Ticker: WPRO

Description: Software and IT developer

Citi's Comments: 'Full service model. Well positioned for growing demand for IT outsourcing.'

Source: Citi

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