Citi: These Are The 20 Best Stocks Around The Entire World


Citigroup just released its Global Equity Quarterly report to clients. 

Their team, led by Chief Global Strategist Robert Buckland, believes global EPS will only grow 2% in 2012, down from 10% growth in 2011.

However, they believe global stock markets are pricing a global recession, which conflicts with their forecast for 2.9% global GDP growth.

As such, Citi forecasts a minimum 20% rally in the global stock markets by the end of 2012.

The report takes the top stock picks from Citi’s top regional strategists and compiles them in its prized Global Preferred Stock List.

Well, we’ve read the list and pulled the key comments that analysts made for each stock.

American Express - U.S. (NYSE: AXP)

Sector: Diversified Financial

Comment: Forecast +25% RoE

Source: Citi

Archer-Daniels-Midland Co. - U.S. (NYSE: ADM)

Sector: Food Beverage & Tobacco

Comment: Improving corn sweetener and processing fundamentals

Source: Citi

BHP Billiton - Australia (ASX: BHP)

Sector: Materials

Comment: Recent PMIs reduce hard landing risk in China

Source: Citi

Comp Vale Do Rio - Brazil (BOVESPA: VALE3)

Sector: Materials

Comment: Positive on long term iron ore price

Source: Citi

Daimler AG - Germany (ETR: DAI)

Sector: Autos & Components

Comment: 7% dividend yield and 5x PE

Source: Citi

EMC Corporation - U.S. (NYSE: EMC)

Sector: Tech

Comment: Clear leader in networked storage

Source: Citi

Empresa Nacional de Electricidad S.A. - Chile (SCL:ENDESA)

Sector: Utilities

Comment: Attractive valuation compared to replacement cost

Source: Citi

Itochu Corp. - Japan (TYO: 8001)

Sector: Capital Goods

Comment: Commodity-induced volatility provides a buying opportunity

Source: Citi

KDDI Corporation - Japan (TYO:9433)

Sector: Telecoms

Comment: Smart phone penetration is rising

Source: Citi

MetLife, Inc. - U.S. (NYSE: MET)

Sector: Insurance

Comment: Strong market positions and brand awareness

Source: Citi

Novatek - Russia (MICEX: NOTK)

Sector: Energy

Comment: Output forecast to double over 5 years

Source: Citi

Pernod-Ricard S.A. - France (EPA: RI)

Sector: Food Bev & Tobacco

Comment: Underappreciated exposure to Emerging Markets

Source: Citi

Richemont S.A. - Swizerland (VTX: CFR)

Sector: Consumer Durables & Apparel

Comment: Beneficiary of weaker EUR & solid balance sheet

Source: Citi

Samsung Electronics Co. - Korea (SEO:005930)

Sector: Semiconductors

Comment: Improving competitiveness

Source: Citi

Sanofi S.A. - France (EPA: SAN)

Sector: Pharma

Comment: New CEO focusing on costs and disciplined M&A

Source: Citi

Santos Limited - Australia (ASX: STO)

Sector: Energy

Comment: +50% upside to price target

Source: Citi

Seven & i Holdings Company - Japan (TYO:3382)

Sector: Food & Staples Retailing

Comment: Signs convenience stores have bottomed

Source: Citi

Texas Instruments, Inc. - U.S. (NYSE: TXN)

Sector: Semiconductors

Comment: National Semi acquisition adds scale

Source: Citi

Taiwan Semiconductor Manufacturing Co. Ltd. - Taiwan (TPE:2330)

Sector: Semiconductor

Comment: Superior margins, strong free cash flow

Source: Citi

Xstrata PLC - U.K. (LON: XTA)

Sector: Materials

Comment: Additional margin potential via reduced cost base

Source: Citi

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