Top Key Call Stocks From UBS Global Ideas of the Week (LOW, TWX, BUD, APC, KEY, AZN, RIO, UBS)
When the holidays wound down and we started off 2013, all the Wall St. firms started to put out their top stock picks for the year. We covered those various lists so our readers could get an idea which way research analysts were leaning. One such list we covered was the UBS A.G. (NYSE: UBS) “Key Call” list of stocks to buy. Those stocks represented the high conviction names at the Swiss bank. In a fresh research report, we found a group of Key Call stocks that are featured in the UBS Global Ideas of the Week list.
Being a Key Call name and on the Global Ideas list is a good way for an investor to judge how strongly the analysts and equity strategists at UBS feel about any given stock. This double stamp of approval is rare at many Wall St. firms and should give everyone from portfolio managers to the retail investor confidence in the stocks to buy.
The Key Call names on the UBS Global Ideas of the Week list are:
Home improvement retailer Lowe’s Companies Inc. (NYSE: LOW) tops the UBS list. Benefiting from the huge increase in domestic construction and home building, the company has seen revenues jump dramatically this year. The UBS price target for Lowe’s is $42. The Thomson/First Call consensus price target is $41.
Broadcasting and entertainment giant Time Warner Inc. (NYSE: TWX) makes the cut. With networks, film and TV entertainment, and publishing all driving revenues, this one is a solid core holding. The UBS target price for the stock is $60. That is also the Wall St. consensus target.
Anheuser-Busch InBev S.A./N.V. (NYSE: BUD), maker of the famous Budweiser brand of beer, is a top idea. The iconic St. Louis brewer was acquired by Europe’s InBev in 2008. The combined company offers almost 200 different brands of beer. Now that is diversity. The UBS price target for the stock is $110. The consensus target is in line at $110.
Based in the Houston suburb of The Woodlands, independent exploration and production leader Anadarko Petroleum (NYSE: APC) is a top stock to buy. With three strong segments providing revenue growth, Anadarko is a top pick at many Wall St. firms. The UBS price target is $105. Thec onsensus price target is slightly lower at $101.
Regional U.S. bank KeyCorp (NYSE: KEY) may be the best value play on the UBS list. Based in Cleveland and with almost 1100 branches spread through Ohio and the surrounding states, this regional money center bank has solid growth prospects. The UBS price target for the stock is $11. The consensus price target is $10.
UK-based drug giant AstraZeneca PLC (NYSE: AZN) may offer investors the best total return. With its solid pharmaceutical and over-the-counter product line, investors also receive a solid 5.68% dividend. The UBS price target is $51, and the consensus estimate is in line at $51.50.
The last Key Call name on the Global Weekly list is London-based mining giant Rio Tinto PLC (NYSE: RIO). Mining everything from gold and silver to aluminum, Rio Tinto has a truly worldwide presence. The UBS target for the stock is $72. The consensus price target is $73.60. The mining names are extremely out of favor on Wall St. Any pick up in global and domestic growth could be a huge tailwind for this diversified name.
Investors looking for solid stocks to add to their portfolio need to consider not only U.S. names, but other large cap companies from around the world with diversified business models. Even though growth in Europe and other parts of the globe may be lagging our own, the U.S. economy is the tail that wags the dog. Once solid growth is established here, it should translate to growth around the world.