Photo: Zilberman Sands Photography / Flickr
David Bianco and Deutsche Bank’s U.S. equity strategy team believe that the S&P 500 will reach 1,575 by the end of 2013. If we get a decent deal to address the sequestration, Bianco thinks the index goes as high as 1,600.
But within the market, some stocks look better than others.
In his latest note to clients, Bianco includes a list of the 30 stocks he likes right now.
All of these stocks are buy-rated by Deutsche Bank analysts. Each have a market capitalisation over $10 billion, a price-earning ratio on 2013 EPS below 18, 2013 EPS growth above 5 per cent, and a net debt to market cap ratio below 30 per cent (excluding Financials).
Ticker: DD
Target Price: $54
Net Debt/Mkt Cap: +27%
'13 EPS Growth: +13%
DuPont is a chemical company active in agriculture, electronics, automotive, mining, and energy sectors, to name a few. The company's headquarters are located in Wilmington, Delaware.
Source: Deutsche Bank
Ticker: APD
Target Price: $95
Net Debt/Mkt Cap: +26%
'13 EPS Growth: +7%
APD serves customers in technology, energy, healthcare, and industrial sectors by providing a variety of gases, performance material, and related equipment and services. Allentown, Pennsylvania is the site of the company's headquarters.
Source: Deutsche Bank
Ticker: MSFT
Target Price: $35
Net Debt/Mkt Cap: -24%
'13 EPS Growth: +7%
Microsoft's eight business divisions include Skype, server and tools, business solutions, Office, and entertainment. The company has recently launched Windows Phone 8.
Source: Deutsche Bank
Ticker: INTC
Target Price: $28
Net Debt/Mkt Cap: -3%
'13 EPS Growth: +6%
Intel's mission is to create and extend computing technology to every person on the planet within the next decade. The company, best known for its microprocessors, has its headquarters in Santa Clara, California.
Source: Deutsche Bank
Ticker: IBM
Target Price: $240
Net Debt/Mkt Cap: +10%
'13 EPS Growth: +12%
IBM develops software and services designed to record, process, communicate, store, and retrieve information. The company is headquartered in Armonk, New York.
Source: Deutsche Bank
Ticker: ACN
Target Price: $75
Net Debt/Mkt Cap: -13%
'13 EPS Growth: +11%
This global management consulting, technology services, and outsourcing firm has over 257,000 employees in more than 120 countries. Accenture ranked 43 on Interbrand's Best Global Brands in 2012.
Source: Deutsche Bank
Ticker: GOOG
Target Price: $850
Net Debt/Mkt Cap: -20%
'13 EPS Growth: +12%
Google is a technology company that maintains an index of web sites and other online content for users. It was founded in 1998 and is headquartered in Mountain View, California.
Source: Deutsche Bank
Ticker: APH
Target Price: $73
Net Debt/Mkt Cap: +6%
'13 EPS Growth: +11%
This firm manufactures electrical, electronic and fibre optic connectors, coaxial and flat-ribbon cable, and interconnect systems.
Source: Deutsche Bank
Ticker: EMC
Target Price: $30
Net Debt/Mkt Cap: -7%
'13 EPS Growth: +17%
This company bills itself as global leader in enabling businesses and service providers to transform their operations and deliver information technology as a service. The firm is headquartered in Hopkinton, Massachusetts.
Source: Deutsche Bank
Ticker: AAPL
Target Price: $800
Net Debt/Mkt Cap: -6%
'13 EPS Growth: +8%
Apple's headquarters are located in Cupertino, California. The company, which has recently introduced the iPad mini and iPhone 5, posted a net profit of $8.2 billion in 3Q 2012.
Source: Deutsche Bank
Ticker: QCOM
Target Price: $74
Net Debt/Mkt Cap: -10%
'13 EPS Growth: +9%
Qualcomm provides wireless technology and services, including semiconductors. The company reported revenues of $4.6 billion in 3Q 2012.
Source: Deutsche Bank
Ticker: ITW
Target Price: $72
Net Debt/Mkt Cap: +10%
'13 EPS Growth: +10%
ITW designs and manufactures a variety of highly engineered fasteners and components, equipment and consumable systems, and specialty products and equipment. The company has 825 decentralized business units.
Source: Deutsche Bank
Ticker: ROK
Target Price: $96
Net Debt/Mkt Cap: -2%
'13 EPS Growth: +15%
Rockwell is the largest industrial automation company in the world. In 2012, the firm was recognised as one of the 'world's most ethical companies' by the Ethisphere Institute.
Source: Deutsche Bank
Ticker: UTX
Target Price: $90
Net Debt/Mkt Cap: +29%
'13 EPS Growth: +16%
UTX provides a range of products and services to global aerospace and building systems industries. The company was ranked on Barron's list of the World's Most Respected Companies, and is among the top 20 U.S. manufacturers.
Source: Deutsche Bank
Ticker: HON
Target Price: $74
Net Debt/Mkt Cap: +5%
'13 EPS Growth: +10%
Honeywell offers aerospace, automation and control solutions, performance materials and technologies, and transportation products and services. The company's 132,000 employees include 19,000 engineers.
Source: Deutsche Bank
Ticker: GD
Target Price: $80
Net Debt/Mkt Cap: +4%
'13 EPS Growth: +8%
General Dynamics is an aerospace and defence company. It was founded in 1899 and is based in Falls Church, Virginia.
Source: Deutsche Bank
Ticker: ALL
Target Price: $48
Net Debt/Mkt Cap: +29%
'13 EPS Growth: +26%
Allstate offers a variety of different products, including life, health, automotive, and property insurance. The company is headquartered in Northbrook, Illinois.
Source: Deutsche Bank
Ticker: C
Target Price: $46
Net Debt/Mkt Cap: +441%
'13 EPS Growth: +14%
Citi offers banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management services to its consumers, which includes individuals, corporations, governments, and other institutions. Citi's headquarters are located on Park Avenue in New York City.
Source: Deutsche Bank
Ticker: USB
Target Price: $38
Net Debt/Mkt Cap: +86%
'13 EPS Growth: +8%
This financial services firm is headquartered in Minneapolis, Minnesota. It has approximately $350 billion in assets.
Source: Deutsche Bank
Ticker: PNC
Target Price: $71
Net Debt/Mkt Cap: +136%
'13 EPS Growth: +8%
PNC provides deposit, lending, cash management, and investment services to over 5 million consumers and small businesses across a swath of the U.S. PNC also owns approximately 25% of the investment management firm BlackRock.
Source: Deutsche Bank
Ticker: SLB
Target Price: $89
Net Debt/Mkt Cap: +7%
'13 EPS Growth: +13%
Schlumberger, an oilfield services provider, employs over 115,000 people in about 85 countries. Houston, Texas is the site of the company's headquarters.
Source: Deutsche Bank
Ticker: HAL
Target Price: $53
Net Debt/Mkt Cap: +8%
'13 EPS Growth: +7%
Halliburton has provided products and services to the oil and gas industry since 1919. The firm's headquarters are located in Houston, Texas.
Source: Deutsche Bank
Ticker: CAM
Target Price: $78
Net Debt/Mkt Cap: +5%
'13 EPS Growth: +35%
Cameron provides products, systems, and services to oil and gas processors. Though two-thirds of its business is outside the U.S., the company headquarters are located in Houston, Texas.
Source: Deutsche Bank
Ticker: BHI
Target Price: $57
Net Debt/Mkt Cap: +22%
'13 EPS Growth: +9%
Baker Hughes provides equipment and services to support oil and gas development. The company's global headquarters are located in Houston, Texas.
Source: Deutsche Bank
Ticker: LYB
Target Price: $70
Net Debt/Mkt Cap: +2%
'13 EPS Growth: +15%
This chemical company markets or sells its products in over 100 countries. Some products manufactured by the firm include food packaging and insulation.
Source: Deutsche Bank
Ticker: DIS
Target Price: $56
Net Debt/Mkt Cap: +13%
'13 EPS Growth: +11%
Disney has five business segments: media networks, parks and resorts, studio entertainment, consumer products, and interactive media. Across the globe, Disney employs over 140,000 people.
Source: Deutsche Bank
Ticker: VIAB
Target Price: $62
Net Debt/Mkt Cap: +28%
'13 EPS Growth: +11%
Viacom Group, an entertainment content company, includes BET, MTV, VH1, Comedy Central, and Spike as a partial list of its networks. The company also operates in films through Paramount Pictures, among others, and holds sizable digital assets.
Source: Deutsche Bank
Ticker: NWSA
Target Price: $29
Net Debt/Mkt Cap: +11%
'13 EPS Growth: +17%
News Corp, best known as the parent company to Fox, is a mass media company engaged in television, film, publishing, and a variety of other areas. The company is headquartered in New York City, on Avenue of the Americas.
Source: Deutsche Bank
Ticker: CBS
Target Price: $40
Net Debt/Mkt Cap: +22%
'13 EPS Growth: +11%
CBS is a media company whose operations include cable, publishing, radio, local TV, film, advertising, and social media. The CBS logo -- 'the Eye' -- is among the most recognised brands on TV.
Source: Deutsche Bank
Ticker: MCD
Target Price: $97
Net Debt/Mkt Cap: +12%
'13 EPS Growth: +9%
After its founding in 1955, McDonald's now operates in over 119 countries and serves approximately 68 million people per day. The company's headquarters are in Oak Brook, Illinois.
Source: Deutsche Bank
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