With the first quarter starting to wind down, many firms on Wall Street are doing some fine tuning to the list of stocks that rank highest with their analysts. In many cases, it appears that the adjustments to the lists are in part a function of the market continuing to push stock prices up. In a new report from Credit Suisse, they follow suit and add new stocks to the firm’s exclusive Top Picks list.
The Credit Suisse team added a total of 10 new stocks to the Top Picks list. We screened them in an attempt to find stocks in different market sectors. Here are five new members of the Top Picks list in five separate market sectors.
BB&T Corp. (NYSE: BBT) is a top bank to buy for 2015 added to the list at Credit Suisse. It is one of the largest financial services holding companies in the United States, with $184.7 billion in assets and a market capitalization of $27.25 billion. It operates 1,824 financial centers in 12 states and Washington, D.C., and it offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. The Credit Suisse analysts are positive on the stock after solid results that beat estimates in January, and they anticipate a solid level of return of capital to shareholders going forward.
BB&T Investors are paid a respectable 2.5% dividend. Credit Suisse has a $44 price target for the stock, and the Thomson/First Call consensus price target is $41.44. The stock closed Wednesday at $37.81 a share.
B/E Aerospace Inc. (NASDAQ: BEAV) is added to the list and is a top stock to buy in the aerospace and defense sector. The analysts like the significant content expansion story at the company, which they believe will be supplemented by an improved cash generation profile and shareholder returns following the spinoff of KLX. The company’s revenue increased by 10% year-over-year to $638 million, and adjusted net earnings were up 8% to $59.8 million. The solid fourth-quarter results were in part a reflection of a higher level of spending on development of a unique new product suite in the business jet segment.
B/E Aerospace investors are paid a 1.2% dividend. The Credit Suisse price target is $68. The consensus number is $67. Shares closed Wednesday at $62.84.
Tableau Software Inc. (NASDAQ: DATA) is a top technology stock added to the Credit Suisse list. It provides business analytics software products in the United States, Canada and internationally. The company offers Tableau Desktop, a self-service analytics environment that empowers people to access and analyze data independently, as well as Tableau Server, a business intelligence platform with data management, scalability and security to foster the sharing of data. The Credit Suisse team are very positive on Tableau’s ability to sustain solid revenue growth and have a very positive opinion of the corporate management and strategy.
The Credit Suisse price target is $115, and the consensus price objective is$108.24. Shares ended the day Wednesday at $92.11.
Marathon Petroleum Corp. (NYSE: MPC) is also a top refining stock added to the Credit Suisse list. Marathon has a diversified business, which operates through Refining & Marketing, Speedway and Pipeline Transportation segments. The company owns and operates seven refineries in the Gulf Coast and Midwest regions of the United States, which refine crude oil and other feedstocks, and it distributes refined products through barges, terminals and trucks, as well as purchases ethanol and refined products for resale.
Marathon shareholders are paid a 1.95% dividend. The Credit Suisse price target is $125. The consensus target is much lower at $112.58. Shares closed Wednesday at $102.01.
Pfizer Inc. (NYSE: PFE) is added to the list in the pharmaceutical arena. It rocked Wall Street recently, announcing a gigantic $15.2 billion purchase of Hospira, a top provider of sterile injectable drugs, including those used for acute care and cancer treatment, as well as infusion technologies and biosimilars, which are subsequent versions of drugs whose patents have expired. In addition, Pfizer’s drug Ibrance was approved for advanced breast cancer by U.S. regulators more than two months ahead of schedule, letting the drug maker proceed with one of its most promising new blockbusters, a turn-of-events that Wall Street likes.
Pfizer investors are paid a solid 3.2% dividend, which the Credit Suisse analysts cite as one reason to buy. The price target is $36, and the consensus target is $35.83. Pfizer closed Wednesday at $34.64.
The additions to the list all make good sense for long-term growth investors with a slightly higher risk tolerance. All the companies look poised for a solid remainder of 2015.