JPMorgan's Tom Lee Names The 17 Best Stocks Right Now

Tom Lee

Photo: Bloomberg TV

Over the last few years, stocks with significant international exposure have been favoured as the U.S. economy slowed.Lately, the opposite is true with China rapidly decelerating and Europe getting crushed by its debt burdens.

“Negative EPS revisions are heavily concentrated in companies with international exposure,” wrote Tom Lee, JP Morgan’s Chief U.S. Equity Strategist.

Lee thinks that stocks with limited international exposure will do best through earnings season.

In a new note to clients, he handpicked 17 stocks with low international exposure, significant insider buying, and a track record of beating earnings expectations.

We feature those stocks and include stats on international sales as a per cent of total sales and the amount by which actual earnings beat the consensus estimate in Q1.

Pioneer Natural Resources

Ticker: PXD

Industry: Oil & Gas Exploration

International Sales: 0%

1Q 2012 EPS Beat: 6%

Reporting Date: 8/1/12

Pioneer is an independent oil and gas exploration and production company with operations in the United States and South Africa.

Source: JP Morgan

Southwest Airlines

Ticker: LUV

Industry: Airlines

International Sales: 0%

1Q 2012 EPS Beat: 5%

Reporting Date: 7/19/12

Southwest Airline is a passenger airline serving 72 cities in 37 states throughout the United States.

Source: JP Morgan

EQT Corp.

Ticker: EQT

Industry: Oil & Gas Exploration

International Sales: 0%

1Q 2012 EPS Beat: 2%

Reporting Date: 7/26/12

EQT is a natural gas producer in the Appalachian Basin with 5.4 trillion cubic feet equivalent of proved reserves across 3.5 million acres.

Source: JP Morgan

Humana Inc.

Ticker: HUM

Industry: Managed Health Care

International Sales: 0%

1Q 2012 EPS Beat: 0%

Reporting Date: 8/6/12

Humana offers a range of insurance products to approximately 11 million members in its medical benefit plans.

Source: JP Morgan

O'Reilly Automotive

Ticker: ORLY

Industry: Automotive Retail

International Sales: 0%

1Q 2012 EPS Beat: 2%

Reporting Date: 7/23/12

O'Reilly is a specialty retailer of automotive parts. It sells its products to both do-it-yourself (DIY) customers and professional service providers out of nearly 3,740 stores.

Source: JP Morgan

cognisant Technology

Ticker: CTSH

Industry: IT Consulting

International Sales: 22%

1Q 2012 EPS Beat: 0%

Reporting Date: 7/30/12

cognisant provides information technology, consulting and business process outsourcing services.

Source: JP Morgan

BB&T Corp.

Ticker: BBT

Industry: Regional Banks

International Sales: 0%

1Q 2012 EPS Beat: 2%

Reporting Date: 7/20/12

BB&T operates banks across most of the eastern U.S.

Source: JP Morgan

Yahoo! Inc.

Ticker: YHOO

Industry: Internet Software

International Sales: 34%

1Q 2012 EPS Beat: 1%

Reporting Date: 7/16/12

Yahoo! is a digital media company providing various online properties and services.

Source: JP Morgan

Simon Property Group

Ticker: SPG

Industry: Retail REITs

International Sales: 0%

1Q 2012 EPS Beat: 18%

Reporting Date: 7/23/12

Simon Property owns, develops, and manages various retail real estate properties including outlet malls and shopping centres.

Source: JP Morgan

Quest Diagnostics Inc.

Ticker: DGX

Industry: Health Care Services

International Sales: 0%

1Q 2012 EPS Beat: 4%

Reporting Date: 7/19/12

Quest Diagnostics provides of diagnostic testing and services for patients and physicians through its nationwide network of laboratories.

Source: JP Morgan

PG&E Corp.

Ticker: PCG

Industry: Multi-Utilities

International Sales: 0%

1Q 2012 EPS Beat: 2%

Reporting Date: 8/2/12

Pacific Gas and Electric sells and delivers electricity and natural gas to customers. It serves approximately 5.2 million electricity distribution customers and approximately 4.3 million natural gas distribution customers.

Source: JP Morgan

Northrop Grumman

Ticker: NOC

Industry: Aerospace & defence

International Sales: 6%

1Q 2012 EPS Beat: 6%

Reporting Date: 7/26/12

Northrop Grumman provides products and services in aerospace and electronics mostly to the U.S. Government.

Source: JP Morgan

Cincinnati Financial

Ticker: CINF

Industry: Property & Casualty Insurance

International Sales: 0%

1Q 2012 EPS Beat: 124%

Reporting Date: 7/23/12

Cincinnati Financial sells property and casualty insurance through independent insurance agents in 39 states.

Source: JP Morgan

Consolidated Edison Inc.

Ticker: ED

Industry: Multi-Utilities

International Sales: 0%

1Q 2012 EPS Beat: 1%

Reporting Date: 8/1/12

ConEd delivers electricity, natural gas, and steam to customers in New York City and Westchester County.

Source: JP Morgan

Public Service Enterprise Group

Ticker: PEG

Industry: Multi-Utilities

International Sales: 0%

1Q 2012 EPS Beat: 0%

Reporting Date: 7/30/12

PSEG provides power to customer in the northeaster and midatlantic U.S.

Source: JP Morgan

SLM Corp.

Ticker: SLM

Industry: Consumer Finance

International Sales: 0%

1Q 2012 EPS Beat: 1%

Reporting Date: 7/16/12

Sallie Mae originates, services and collects loans it makes to students or to their parents to finance the cost of their education.

Source: JP Morgan

Southern Co.

Ticker: SO

Industry: Electric Utilities

International Sales: 0%

1Q 2012 EPS Beat: 1%

Reporting Date: 7/27/12

The Southern Company is a holding company of public utility companies including Alabama Power Company, Georgia Power Company, Gulf Power Company, and Mississippi Power Company.

Source: JP Morgan

How many of Lee's stocks show up on Morgan Stanley's list?

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.