RBC's Top Stock Picks With Big Upside Price Targets
Like most of the firms we follow on Wall Street, RBC has updated its top stocks picks for April. With first-quarter earnings right around the corner, and the stock market trading once again near all-time highs, we are keeping close tabs on the calls that are coming out. With a market breathlessly waiting on every new piece of data, and investors searching high and low for big stock winners, we screened the RBC list for the stocks with the largest upside to their target prices.
CBS Corp. (NYSE: CBS) may be in the best position of all the broadcast networks, and it is one of the top picks at RBC. With an outstanding primetime lineup, solid sports franchises like the NFL, March Madness College Basketball, the Masters and other top programming, the venerable network has been an outstanding stock for shareholders. Investors are paid a small 0.8% dividend. The stock is up more than 60% in the past year. The RBC price target is $69. The Thomson/First Call estimate is $63. CBS closed Wednesday at $63.35, so a move to the RBC target is a 12% gain.
Concho Resources Inc. (NYSE: CXO) is on the list of top names to buy at RBC and is a big energy play in the Permian Basin in West Texas. Concho is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The stock also may be a possible takeover candidate, but it would be a pricey move for a bigger fish. The RBC target price is $144.50, and the consensus price target is lower $136.17 Concho closed Wednesday at $125.61. A move to the RBC target would be close to a 20% gain.
Johnson Controls Inc. (NYSE: JCI) is likely to enjoy an ongoing strong automobile market in 2014, and this week’s sales numbers from the big automotive companies did nothing to dampen that solid outlook. The company is a global diversified technology and industrial leader serving customers in more than 150 countries. Investors are paid a 1.9% dividend. RBC has a $61 price target, and the consensus target is $54.78. Johnson Controls closed Wednesday at $49.11. Hitting the RBC target would a large 29% gain.
Marvell Technology Group Ltd. (NASDAQ: MRVL) is the tech stock investors have waited on for years for its ship to come in. The key to Marvell’s success is that it is gaining market share at Western Digital, and the advent of SSDs has turned out to be a solid catalyst. In addition, hard disk drives are also being used for non-PC applications such as server storage and data centers. Marvell enjoys a 50% share of Western Digital’s enterprise business, which is significant. Investors are paid a 1.6% dividend. RBC has a $21 price target, while the consensus number is posted at $16.31. Marvell closed trading Wednesday at $16.23. A jump to the RBC target would be just shy of a 30% gain.
Monster Beverage Corp. (NASDAQ: MNST) is a top consumer discretionary name to buy at RBC. The company is increasing its convenience-store penetration through innovations. The company has had recent success launching Muscle Monster protein and energy drinks, a zero-calorie energy-drink line and other new products that have enabled it to grow market share. With high margins and a growing market share, the stock is a solid add. The RBC price target is $81, and the consensus is posted at $78.73. Monster closed trading Wednesday at $69.65. Hitting the RBC target would be a 16% gain.
SBA Communications Corp. (NASDAQ: SBAC) owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama and Brazil. The company leases antenna space primarily to wireless service providers on towers and other structures that it owns, manages or leases from others. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term. The RBC price target is $112, and the consensus target is $105.07. SBA closed Wednesday at $89.98. A move to the RBC target would be a nice 22% gain.
WebMD Health Corp. (NASDAQ: WBMD) is a moon-shot call at RBC. The company has a large 21% of the stock sold short, so some analysts are very bearish. That could prove dangerous as analysts’ estimates for the stock have moved higher recently. The company also recently added $40 million to its stock buyback plan. RBC has a $70 target, and the consensus number is set at a much lower $53.25. WebMD closed Wednesday at $41.68. Hitting that huge RBC target would be an almost 70% gain.
One thing is for sure, RBC has not gone down the dangerous path of touting momentum stocks. With a pricey market and earnings right around the corner, it would seem like any disappointments could start a selling slide that could grow in magnitude. Most of the RBC stocks are suitable for growth-oriented portfolios.
24/7 Wall St. also noted that some of the biotech giants are now priced like old world drug stocks, which could make them very attractive for many investors. And see what the chances are that Mannkind shares can double again if it brings inhalable insulin to market. See also Thursday’s top analyst upgrades and downgrades.