Citi's Top Equity Strategist Gives His 18 favourite Stocks In The World

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Photo: Owen Brown / Flickr, CC

Citigroup’s Chief U.S. Equity Strategist Tobias Levkovich may be the most bullish strategist on Wall Street. He sees the S&P 500 ending the year at 1,615.Of course, he sees some sectors and stocks doing better than other.

In a note that recently went out to clients, Levkovich provided an update to his short “Recommended List” of 18 stocks.

The list is overweight on consumer discretionary and information technology stocks.

Starwood Hotels & Resorts

Ticker:
HOT

Industry:
Consumer discretionary

Price Target:
$65.00

P/E ratio:
23.5

EPS estimates:
$2.64

Why:
A recovery in demand for hotel rooms, opportunities for global expansion.

Source: Citigroup

Harley-Davidson

Ticker:
HOG

Industry:
Consumer discretionary

Price Target:
$58.00

P/E ratio:
15.8

EPS estimates:
$3.45

Why:
Improving retail trends, consumer recovery.

Source: Citigroup

Starbucks

Ticker:
SBUX

Industry:
Consumer discretionary

Price Target:
$65.00

P/E ratio:
21.1

EPS estimates:
$2.64

Why:
U.S. turnaround is making progress, international outlook has improved.

Source: Citigroup

Newell Rubbermaid Inc

Ticker:
NWL

Industry:
Consumer discretionary

Price Target:
$24.00

P/E ratio:
13.1

EPS estimates:
$1.80

Why:
Aggressive cost cutting will help offset tough environment, great cash flow.

Source: Citigroup

Procter & Gamble

Ticker:
PG

Industry:
Consumer staples

Price Target:
$83.00

P/E ratio:
17.4

EPS estimates:
$4.31

Why:
Dominant market share, balanced brand portfolio, great cash flow.

Source: Citigroup

Apache Corp

Ticker:
APA

Industry:
Energy

Price Target:
$95.00

P/E ratio:
10.2

EPS estimates:
$8.40

Why:
Growth opportunities, strong balance sheet.

Source: Citigroup

Blackstone Group LP

Ticker:
BX

Industry:
Financials

Price Target:
$20.00

P/E ratio:
10

EPS estimates:
$1.60

Why:
Strong strategic positioning, it's gaining more market share, rising alternative allocations.

Source: Citigroup

Macerich Co

Ticker:
MAC

Industry:
Financials

Price Target:
$65.25

P/E ratio:
17.7

EPS estimates:
$3.13

Why:
Currently trading at a discount, good internal and external growth drivers and a solid balance sheet.

Source: Citigroup

Aetna

Ticker:
AET

Industry:
Health Care

Price Target:
$59.00

P/E ratio:
8.9

EPS estimates:
$5.60

Why:
Great earnings potential.

Source: Citigroup

FedEx Corp

Ticker:
FDX

Industry:
Industrials

Price Target:
$114.00

P/E ratio:
13

EPS estimates:
$
6.30

Why:
Significant earnings growth potential.

Source: Citigroup

Lockheed Martin Corp

Ticker:
LMT

Industry:
Industrials

Price Target:
$110.00

P/E ratio:
9.4

EPS estimates:
$9.05

Why:
Well positioned to benefit from Department of Defence spending shifts, resilient cash flow.

Source: Citigroup

CSX Corp

Ticker:
CSX

Industry:
Industrials

Price Target:
$22.00

P/E ratio:
12.5

EPS estimates:
$1.75

Why:
Will probably exceed internal targets, which would result in higher earnings.

Source: Citigroup

Qualcomm

Ticker:
QCOM

Industry:
Information Technology

Price Target:
$75.00

P/E ratio:
14.3

EPS estimates:
$4.22

Why:
Smartphone market remains strong, they're building a chip unit.

Source: Citigroup

Google Inc

Ticker:
GOOG

Industry:
Information Technology

Price Target:
$830.00

P/E ratio:
14.2

EPS estimates:
$52.96

Why:
Will benefit from growth in online advertising.

Source: Citigroup

Western Union Co

Ticker:
WU

Industry:
Information Technology

Price Target:
$14.50

P/E ratio:
9.7

EPS estimates:
$1.68

Why:
Market leader in money transfers, benefit from global recovery.

Source: Citigroup

Texas Instruments Inc

Ticker:
TXN

Industry:
Information Technology

Price Target:
$38.00

P/E ratio:
15.8

EPS estimates:
$1.63

Why:
Will benefit from better-than-expected management of expenses.

Source: Citigroup

Amphenol Corp

Ticker:
APH

Industry:
Information Technology

Price Target:
$79.00

P/E ratio:
16.1

EPS estimates:
$3.81

Why:
It's diversifying its products and expanding, and its end-market is growing.

Source: Citigroup

The AES Corp

Ticker:
AES

Industry:
Utilities

Price Target:
$14.00

P/E ratio:
8.5

EPS estimates:
$1.21

Stock is attractively valued.

Source: Citigroup

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