Oppenheimer: 24 Companies Where Business Is On Fire

rollercoaster

Wall Street analysts have been lowering their earnings expectations ahead of Q3 earnings season.  Fund managers too have been shifting their equity holdings into more defensive stocks with low earnings volatility.

However, the bar is now set low for stocks, argues Oppenheimer’s Chief Investment Strategist Brian Belski. If earnings beat expectations and stocks rally, fund managers–especially under performing fund managers–will allocate more aggressively.

One area of the stock market that could benefit are companies with positive earnings momentum trading at attractive valuations.  Belski screened the S&P 500 for companies with above average earnings growth, better-than-expected earnings in its latest quarter, and above average upward revisions to next years’ earnings estimates.  These stocks are priced above $5 per share and trade at less than 15 times forward earnings.

Belski found 24 picks fitting the bill.

Apple, Inc. (AAPL)

Current Price: $422.00

Trailing Twelve Month EPS: $25.28

Trailing Twelve Month P/E Ratio: 16.83

Sector: Electronics

Products: Computers, Smartphones

Source: Oppenheimer, YahooFinance

Baker Hughes Inc. (BHI)

Current Price: $56.67

Trailing Twelve Month EPS: $3.01

Trailing Twelve Month P/E Ratio: 18.00

Sector: Oilfield Services

Products: Drilling and Well Construction

Source: Oppenheimer, YahooFinance

Bed Bath & Beyond Inc. (BBBY)

Current Price: $61.17

Trailing Twelve Month EPS: $3.51

Trailing Twelve Month P/E Ratio: 17.38

Sector: Retail

Products: Home Goods

Source: Oppenheimer, YahooFinance

CBS Corp. (CBS)

Current Price: $23.59

Trailing Twelve Month EPS: $1.73

Trailing Twelve Month P/E Ratio: 13.30

Sector: Media

Products: Television

Source: Oppenheimer, YahooFinance

CF Industries Holdings Inc. (CF)

Current Price: $150.50

Trailing Twelve Month EPS: $14.12

Trailing Twelve Month P/E Ratio: 10.38

Sector: Agriculture Products

Products: Nitrogen and Phosphate fertiliser

Source: Oppenheimer, YahooFinance

Cliffs Natural Resources Inc. (CLF)

Current Price: $65.21

Trailing Twelve Month EPS: $11.03

Trailing Twelve Month P/E Ratio: 5.59

Sector: Mining and Natural Resources

Products: Iron Ore Pellets and Coal

Source: Oppenheimer, YahooFinance

Cummins Inc. (CMI)

Current Price: $97.60

Trailing Twelve Month EPS: $7.62

Trailing Twelve Month P/E Ratio: 12.22

Sector: Engines

Products: Diesel and Natural Gas Engines, Power Generators

Source: Oppenheimer, YahooFinance

Dell Inc. (DELL)

Current Price: $16.62

Trailing Twelve Month EPS: $1.87

Trailing Twelve Month P/E Ratio: 8.60

Sector: Technology

Products: Personal Computers, Servers, Hardware

Source: Oppenheimer, YahooFinance

DIRECTV (DTV)

Current Price: $47.03

Trailing Twelve Month EPS: $3.03

Trailing Twelve Month P/E Ratio: 15.32

Sector: Satellite Television

Products: Satellite Provider, Regional Sports Network Operator

Source: Oppenheimer, YahooFinance

Discover Financial Service (DFS)

Current Price: $24.13

Trailing Twelve Month EPS: $3.75

Trailing Twelve Month P/E Ratio: 6.23

Sector: Financial

Products: Credit Cards, Student Loans

Source: Oppenheimer, YahooFinance

Goodyear Tire & Rubber Co. (GT)

Current Price: $12.27

Trailing Twelve Month EPS: -$0.19

Trailing Twelve Month P/E Ratio: N/A

Sector: Tires

Products: Tire and Auto Services

Source: Oppenheimer, YahooFinance

Google Inc. (GOOG)

Current Price: $591.68

Trailing Twelve Month EPS: $29.34

Trailing Twelve Month P/E Ratio: 19.92

Sector: Internet Services

Products: Online Search, Smartphone Operating System Provider

Source: Oppenheimer, YahooFinance

Halliburton Co. (HAL)

Current Price: $37.43

Trailing Twelve Month EPS: $2.62

Trailing Twelve Month P/E Ratio: 13.32

Sector: Oilfield Services

Products: Drilling and Evaluation Services

Source: Oppenheimer, YahooFinance

Helmerich & Payne Inc. (HP)

Current Price: $48.52

Trailing Twelve Month EPS: $3.65

Trailing Twelve Month P/E Ratio: 12.95

Sector: Oilfield Services

Products: Contract Drilling Services

Source: Oppenheimer, YahooFinance

Jabil Circuit Inc. (JBL)

Current Price: $20.07

Trailing Twelve Month EPS: $1.73

Trailing Twelve Month P/E Ratio: 11.40

Sector: Electronics

Products: Electronics Design, Production, Product Management and Aftermarket Services

Source: Oppenheimer, YahooFinance

KLA-Tencor Corp. (KLAC)

Current Price: $43.85

Trailing Twelve Month EPS: $4.66

Trailing Twelve Month P/E Ratio: 9.29

Sector: Semiconductors

Products: Chip and Wafer Manufacturing

Source: Oppenheimer, YahooFinance

Macy's Inc. (M)

Current Price: $29.26

Trailing Twelve Month EPS: $2.43

Trailing Twelve Month P/E Ratio: 11.95

Sector: Retail

Products: Mid-market and Luxury Department Stores

Source: Oppenheimer, YahooFinance

Moody's Corp. (MCO)

Current Price: $32.18

Trailing Twelve Month EPS: $2.65

Trailing Twelve Month P/E Ratio: 11.98

Sector: Retail

Products: Mid-market and Luxury Department Stores

Source: Oppenheimer, YahooFinance

Northeast Utilities (NU)

Current Price: $33.31

Trailing Twelve Month EPS: $2.37

Trailing Twelve Month P/E Ratio: 13.93

Sector: Energy

Products: Electricity and Gas Utility

Source: Oppenheimer, YahooFinance

Scripps Networks Interactive Inc. (SNI)

Current Price: $41.82

Trailing Twelve Month EPS: $2.43

Trailing Twelve Month P/E Ratio: 16.91

Sector: Media

Products: Television Networks including: Home and Garden Television, Food Network, Travel Channel, DIY Network

Source: Oppenheimer, YahooFinance

SLM Corp. (SLM)

Current Price: $13.54

Trailing Twelve Month EPS: $0.10

Trailing Twelve Month P/E Ratio: 137.19

Sector: Financial

Products: Loans and Lending through Sallie Mae

Source: Oppenheimer, YahooFinance

Snap-On Inc. (SNA)

Current Price: $49.30

Trailing Twelve Month EPS: $4.07

Trailing Twelve Month P/E Ratio: 11.89

Sector: Machinery

Products: Manufacturer of Tools, Equipment, Diagnostics, and Repair Information and Systems

Source: Oppenheimer, YahooFinance

Textron Inc. (TXT)

Current Price: $18.54

Trailing Twelve Month EPS: $0.42

Trailing Twelve Month P/E Ratio: 43.63

Sector: Conglomerate

Products: Aircraft, defence, and Industrial Manufacturing

Source: Oppenheimer, YahooFinance

U.S. Bancorp (USB)

Current Price: $24.70

Trailing Twelve Month EPS: $2.06

Trailing Twelve Month P/E Ratio: 11.62

Sector: Financial

Products: Lending, Consumer Credit, Retail Banking

Source: Oppenheimer, YahooFinance

Goldman Sachs has their own list of top stocks.

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