If The US Economy Grows, These Companies Are Going To Have An Awesome Year

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Bank of America Merrill Lynch recently published its big 2013 stock market outlook report, which calls for the S&P 500 to hit a record 1,600 by the end of the year.Their bullish view on stocks is informed by expectations of “a bottoming in China growth, reduced tail risk from Europe, and a multi-stage fix to the Fiscal Cliff.”

The team, led by Savita Subramanian, identified the top 50 cyclical recovery ideas.  These stocks are very sensitive to US GDP growth and all have high betas, which make them more volatile than the S&P 500.

We ranked the stocks based on correlation to GDP.

Peabody Energy Corp.

Ticker: BTU

Sector: Energy

Correlation: 19.5%

Beta: 4.23

YTD Return: -24.40%

Peabody mines, markets, sells, and distributes coal.

Source: Bank of America Merrill Lynch

Jabil Circuit Inc.

Ticker: JBL

Sector: Information Technology

Correlation: 19.7%

Beta: 4.88

YTD Return: -3.81%

Jabil provides electronic engineering and manufacturing services.

Source: Bank of America Merrill Lynch

Dell, Inc.

Ticker: DELL

Sector: Information Technology

Correlation: 20.4%

Beta: 2.29

YTD Return: -33.63%

Dell, best known for its line of computers, provides technology solutions, services and support.

Source: Bank of America Merrill Lynch

Principal Financial Group Inc.

Ticker: PFG

Sector: Financials

Correlation: 20.5%

Beta: 2.87

YTD Return: +8.94%

The Principal Financial Group manages investments.

Source: Bank of America Merrill Lynch

Morgan Stanley

Ticker: MS

Sector: Financials

Correlation: 20.6%

Beta: 2.29

YTD Return:+11.57%

Morgan Stanley is a global financial services firm.

Source: Bank of America Merrill Lynch

Intuitive Surgical Inc.

Ticker: ISRG

Sector: Health Care

Correlation: 20.8%

Beta: 4.91

YTD Return: +15.54%

Intuitive Surgical provides technology and procedural innovation across cardiac, thoracic, urology, gynecologic, colorectal, pediatric and general surgical disciplines

Source: Bank of America Merrill Lynch

Tiffany & Co

Ticker: TIF

Sector: Consumer Discretionary

Correlation: 21.5%

Beta: 2.16

YTD Return: -9.75%

Tiffany & Co sells luxury jewellery.

Source: Bank of America Merrill Lynch

Kimco Realty Corp.

Ticker: KIM

Sector: Financials

Correlation: 21.7%

Beta: 1.90

YTD Return: +17.00%

Kimco Realty develops, owns, leases, and acquires shopping centres throughout the U.S.

Source: Bank of America Merrill Lynch

Apartment Investment & Management Co.

Ticker: AIV

Sector: Financials

Correlation: 21.8%

Beta: 2.34

YTD Return: +9.38%

AIMCO owns and operates apartment homes in the U.S.

Source: Bank of America Merrill Lynch

eBay Inc.

Ticker: EBAY

Sector: Information Technology

Correlation: 22.0%

Beta: 5.88

YTD Return: +69.70%

eBay connects buyers and sellers online through auctions and straight sales.

Source: Bank of America Merrill Lynch

Noble Corp.

Ticker: NE

Sector: Energy

Correlation: 23.0%

Beta: 1.62

YTD Return: +13.96%

Noble Energy is an oil & gas company with projects in the U.S. and overseas.

Source: Bank of America Merrill Lynch

National Oilwell Varco Inc.

Ticker: NOV

Sector: Energy

Correlation: 23.1%

Beta: 2.44

YTD Return: +3.22%

NOV provides oil companies with mechanical equipment.

Source: Bank of America Merrill Lynch

AvalonBay Communities Inc.

Ticker: AVB

Sector: Financials

Correlation: 23.3%

Beta: 1.50

YTD Return: +1.87%

AvalonBay develops and manages high-quality apartment properties in the U.S.

Source: Bank of America Merrill Lynch

Robert Half International Inc.

Ticker: RHI

Sector: Industrials

Correlation: 23.5%

Beta: 1.52

YTD Return: -2.04%

Robert Half offers professional staffing and consulting services.

Source: Bank of America Merrill Lynch

Amazon.com Inc.

Ticker: AMZN

Sector: Consumer Discretionary

Correlation: 23.8%

Beta: 4.87

YTD Return: +42.76%

Amazon is an online retailer which sells a wide variety of items, including books, music, and movies.

Source: Bank of America Merrill Lynch

Akamai Technologies Inc.

Ticker: AKAM

Sector: Information Technology

Correlation: 24.2%

Beta: 3.83

YTD Return: +12.27%

Akamai is a leader in cloud computing technology.

Source: Bank of America Merrill Lynch

Prudential Financial Inc.

Ticker: PRU

Sector: Financials

Correlation: 24.5%

Beta: 2.85

YTD Return: +2.95%

Prudential offers retirement, insurance, and investment solutions for individual and institutional customers.

Source: Bank of America Merrill Lynch

Microchip Technology Inc.

Ticker: MCHP

Sector: Information Technology

Correlation: 24.6%

Beta: 2.09

YTD Return: -17.39%

Microchip provides both microcontroller and analogue semiconductors.

Source: Bank of America Merrill Lynch

Monsanto Co.

Ticker: MON

Sector: Materials

Correlation: 24.7%

Beta: 2.13

YTD Return: +31.41%

Monsanto sells genetically engineered seeds and other products to farmers.

Source: Bank of America Merrill Lynch

American Tower Corp.

Ticker: AMT

Sector: Financials

Correlation: 24.8%

Beta: 1.63

YTD Return: +24.81%

American Tower owns and operates wireless and broadcast towers.

Source: Bank of America Merrill Lynch

NetApp Inc.

Ticker: NTAP

Sector: Information Technology

Correlation: 25.0%

Beta: 4.03

YTD Return: -13.54%

NetApp creates storage systems and software that help customers around the world store, manage, protect, and retain their data.

Source: Bank of America Merrill Lynch

EMC Corp.

Ticker: EMC

Sector: Information Technology

Correlation: 25.5%

Beta: 1.94

YTD Return: +16.20%

EMC Corp provides IT storage hardware solutions, often for data backup.

Source: Bank of America Merrill Lynch

JDS Uniphase Corp.

Ticker: JDSU

Sector: Information Technology

Correlation: 25.5%

Beta: 6.33

YTD Return: +15.04%

JDS Uniphase manufactures communications networks, measurement, and testing solutions as well as anti-counterfeit solutions.

Source: Bank of America Merrill Lynch

Micron Technology Inc.

Ticker: MU

Sector: Information Technology

Correlation: 25.7%

Beta: 1.29

YTD Return:-8.27%

Micron Technology produces semiconductors.

Source: Bank of America Merrill Lynch

KLA-Tencor Corp.

Ticker: KLAC

Sector: Information Technology

Correlation: 26.3%

Beta: 1.26

YTD Return: -5.55%

KLAC offers process control and yield management solutions for semiconductor manufacturers.

Source: Bank of America Merrill Lynch

AES Corp.

Ticker: AES

Sector: Utilities

Correlation: 26.4%

Beta: 2.59

YTD Return: -12.16%

AES Corp offers industrial automation solutions, systems integration, and process systems to generate and distribute electricity.

Source: Bank of America Merrill Lynch

Broadcom Corp.

Ticker: BRCM

Sector: Information Technology

Correlation: 26.5%

Beta: 4.14

YTD Return: +9.54%

Broadcom offers semiconductor solutions for wired and wireless communications.

Source: Bank of America Merrill Lynch

FMC Technologies Inc.

Ticker: FTI

Sector: Energy

Correlation: 27.2%

Beta: 3.39

YTD Return: -21.12%

FMC Technologies designs, manufactures, and services technology solutions for the energy industry.

Source: Bank of America Merrill Lynch

Crown Castle International Corp.

Ticker: CCI

Sector: Telecommunication Services

Correlation: 27.5%

Beta: 4.41

YTD Return: +50.54%

Crown Castle owns and operates wireless communications and broadcast infrastructure.

Source: Bank of America Merrill Lynch

Starbucks Corp.

Ticker: SBUX

Sector: Consumer Discretionary

Correlation: 27.8%

Beta: 1.41

YTD Return: +11.65%

Starbucks sells high-end coffee as well as other food and beverages.

Source: Bank of America Merrill Lynch

Fluor Corp.

Ticker: FLR

Sector: Industrials

Correlation: 28.0%

Beta: 2.34

YTD Return: +6.47%

Fluor Corp offers engineering, procurement, construction, maintenance, and project management services across a variety of industries.

Source: Bank of America Merrill Lynch

Quanta Services Inc.

Ticker: PWR

Sector: Industrials

Correlation: 28.1%

Beta: 2.78

YTD Return: +16.53%

Quanta Services offers infrastructure solutions for the electric power, natural gas pipeline, and communications industries.

Source: Bank of America Merrill Lynch

Diamond Offshore Drilling Inc.

Ticker: DO

Sector: Energy

Correlation: 28.2%

Beta: 1.76

YTD Return: +23.27%

Diamond provides deepwater drilling services for the energy industry.

Source: Bank of America Merrill Lynch

Agilent Technologies Inc.

Ticker: A

Sector: Health Care

Correlation: 28.3%

Beta: 2.95

YTD Return: +8.70%

Agilent provides measurement tools to businesses, researchers, and governments around the world.

Source: Bank of America Merrill Lynch

Prologis Inc.

Ticker: PLD

Sector: Financials

Correlation: 28.5%

Beta: 2.02

YTD Return: +18.43%

Prologis owns, operates, and develops industrial real estate.

Source: Bank of America Merrill Lynch

Newfield Exploration Co.

Ticker: NFX

Sector: Energy

Correlation: 28.9%

Beta: 1.67

YTD Return: -35.99%

Newfield is an oil & gas exploration company.

Source: Bank of America Merrill Lynch

NVIDIA Corp.

Ticker: NVDA

Sector: Information Technology

Correlation: 29.5%

Beta: 3.76

YTD Return: -11.54%

NVIDIA, inventor of the GPU, started with visual computing but has since moved into super, mobile and cloud computing.

Source: Bank of America Merrill Lynch

News Corp.

Ticker: NWSA

Sector: Consumer Discretionary

Correlation: 29.8%

Beta: 1.40

YTD Return: +36.60%

News Corp is a mass media company involved in film, TV, newspapers, and more.

Source: Bank of America Merrill Lynch

Hartford Financial Services Group Inc.

Ticker: HIG

Sector: Financials

Correlation: 31.8%

Beta: 2.95

YTD Return: +29.60%

Hartford Financial Services Group offers both investment and multiple insurance products.

Source: Bank of America Merrill Lynch

SanDisk Corp.

Ticker: SNDK

Sector: Information Technology

Correlation: 32.5%

Beta: 3.86

YTD Return: -17.82%

SanDisk manufactures flash memory cards for imaging, computing, mobile, and gaming devices.

Source: Bank of America Merrill Lynch

Yahoo! Inc.

Ticker: YHOO

Sector: Information Technology

Correlation: 32.6%

Beta: 4.89

YTD Return: +17.24%

Yahoo! Inc. is an online corporation which offers a search engine, market quotes, and fantasy sports, along with many other services, to its millions of users each month.

Source: Bank of America Merrill Lynch

Rockwell Collins Inc.

Ticker: COL

Sector: Industrials

Correlation: 32.7%

Beta: 2.63

YTD Return: +2.10%

Rockwell Collins designs and manufactures products for aerospace & defence purposes.

Source: Bank of America Merrill Lynch

GameStop Corp.

Ticker: GME

Sector: Consumer Discretionary

Correlation: 32.8%

Beta: 3.03

YTD Return: +9.57%

GameStop is a retail chain which sells video games and related products.

Source: Bank of America Merrill Lynch

E*TRADE Financial Corp.

Ticker: ETFC

Sector: Financials

Correlation: 32.8%

Beta: 3.92

YTD Return: +7.16%

E*TRADE provides an online brokerage service for individual investors.

Source: Bank of America Merrill Lynch

Coach Inc.

Ticker: COH

Sector: Consumer Discretionary

Correlation: 34.4%

Beta: 2.49

YTD Return: -2.75%

Coach designs and manufactures luxury handbags and other accessories.

Source: Bank of America Merrill Lynch

Lorillard Inc.

Ticker: LO

Sector: Consumer Staples

Correlation: 34.6%

Beta: 1.04

YTD Return: +5.63%

Lorillard manufactures many brads of cigarettes.

Source: Bank of America Merrill Lynch

Juniper Networks Inc.

Ticker: JNPR

Sector: Information Technology

Correlation: 34.6%

Beta: 3.10

YTD Return: -11.71%

Juniper Networks provides hardware systems, silicon design, network architecture, and open cross-network software platforms which help advance cloud and mobile computing.

Source: Bank of America Merrill Lynch

Waters Corp.

Ticker: WAT

Sector: Health Care

Correlation: 34.9%

Beta: 2.19

YTD Return: +13.07%

Waters Corp manufactures, sells and services ultra performance liquid chromatography.

Source: Bank of America Merrill Lynch

Joy Global Inc.

Ticker: JOY

Sector: Industrials

Correlation: 35.4 %

Beta: 4.78

YTD Return: -24.89 %

Joy Global manufactures equipment for the mining industry.

Source: Bank of America Merrill Lynch

Zimmer Holdings Inc.

Ticker: ZMH

Sector: Health Care

Correlation: 39.2%

Beta: 1.78

YTD Return: +23.74%

Zimmer Holdings offers musculo-skeletal health solutions, including joint replacement technologies.

Source: Bank of America Merrill Lynch

Now, see what Goldman has to say about the year ahead

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