JP MORGAN: Here Are The 14 Best Stocks Right Now

tom lee

Photo: Bloomberg Television

JP Morgan is bullish on the S&P 500.  They expect the index to “melt up” to 1,495 within weeks.In a new note to clients, chief U.S. equity strategist Tom Lee highlights 14 stock picks to outperform the index.

His recommendations are all domestically oriented companies. All of the companies have seen significant insider buying in the past six months, which is a show of confidence.

In addition, Lee’s picks, which span a variety of industries, have exceeded the Wall Street’s EPS estimates in the first two quarters of 2012.

“On average, these 14 names have 12% upside to J.P. Morgan target prices (for those that are covered) and a 2013E P/E of 11.3x,” writes Lee.

Kroger Co

Ticker: KR

Target Price: $29.00

% Sales Int'l: 0%

1Q EPS Beat: 3%

2Q EPS Beat: 2%

Description: One of the world's largest grocery retailers, with sales of over $90 billion in FY2011.

Source: JP Morgan

Wells Fargo and Co.

Ticker: WFC

Target Price: $42.00

% Sales Int'l: 0%

1Q EPS Beat: 3%

2Q EPS Beat: 5%

Description: An estimated one in three American households does business with Wells Fargo.


Source: JP Morgan

CVS Caremark Corp.

Ticker: CVS

Target Price: $57.00

% Sales Int'l: 0%

1Q EPS Beat: 5%

2Q EPS Beat: 11%

Description: CVS has over 7,300 pharmacies across America and serves over 5 million people per day.

Source: JP Morgan

Macy's Inc.

Ticker: M

Target Price: $46.00

% Sales Int'l: 0%

1Q EPS Beat: 19%

2Q EPS Beat: 3%

Description: Macy's operates 840 department stores in 45 states.

Source: JP Morgan

Union Pacific Corp.

Ticker: UNP

Target Price: $140.00

% Sales Int'l: 0%

1Q EPS Beat: 15%

2Q EPS Beat: 5%

Description: UNP operates 31,900 miles of track covering the western United States.

Source: JP Morgan

Fifth Third Bancorp

Ticker: FITB

Target Price: $18.00

% Sales Int'l: 0%

1Q EPS Beat: 32%

2Q EPS Beat: 18%

Description: #372 on Fortune 500's rankings for America's largest corporations.

Source: JP Morgan

SunTrust Banks Inc.

Ticker: STI

Target Price: $33.50

% Sales Int'l: 0%

1Q EPS Beat: 39%

2Q EPS Beat: 35%

Description: STI's 1,641 retail branches and nearly 3,000 ATMs are predominantly located in the south-eastern United States.

Source: JP Morgan

Bed Bath & Beyond Inc.

Ticker: BBBY

Target Price: $69.00

% Sales Int'l: 0%

1Q EPS Beat: 14%

2Q EPS Beat: 9%

Description: BBY sells domestics merchandise and home furnishings at over 1,400 stores throughout North America.

Source: JP Morgan

Cintas Corp

Ticker: CTAS

Target Price: $47.00

% Sales Int'l: 0%

1Q EPS Beat: 21%

2Q EPS Beat: 3%

Description: The 'service professionals' at Cintas reported revenues over $4.1 billion in FY2012.

Source: JP Morgan

Equity Residential

Ticker: EQR

Target Price: $63.00

% Sales Int'l: 0%

1Q EPS Beat: 74%

2Q EPS Beat: 6%

Description: The apartment development company owns or has investments in over 400 properties across 14 states.


Source: JP Morgan


KeyCorp

Ticker: KEY

Target Price: $9.50

% Sales Int'l: 0%

1Q EPS Beat: 11%

2Q EPS Beat: 26%

Description: KeyCorp offers community baking in 14 states and corporate banking across the U.S.

Source: JP Morgan

Genuine Parts Co.

Ticker: GPC

Target Price: $66.00

% Sales Int'l: 1%

1Q EPS Beat: 8%

2Q EPS Beat: 1%

Description: NAPA, the largest division of GPC, distributes over 380,000 products at its 58 U.S. distribution centres.


Source: JP Morgan


Northrop Grumman Corp.

Ticker: NOC

Target Price: $52.00

% Sales Int'l: 6%

1Q EPS Beat: 20%

2Q EPS Beat: 15%

Description: Offers aerospace, electronic, and information systems as well as technical services in over 25 nations.

Source: JP Morgan

NiSource Inc.

Ticker: NI

Target Price: N/A

% Sales Int'l: 0%

1Q EPS Beat: 1%

2Q EPS Beat: 21%

Description: This natural gas and electric provider was named one of the World's Most Ethical Companies by the Ethisphere Institute.


Source: JP Morgan


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