With the first quarter of 2018 over, and a rash of earnings reports ready to hit the tape, many of the top firms we cover here at 24/7 Wall St. are making some changes to their lists of top stocks to buy. With the markets continuing to experience rising volatility, it makes sense for the big banks and investors to review their ideas and the thesis behind them, and to make changes, which could include taking off both winners and losers.
A new Deutsche Bank report features some big changes to the firm’s Conviction List of top stock ideas. We screened the list by sector and found six new additions, one from each sector, to buy that make good sense for growth portfolios now.
This consumer sector giant is designed for conservative accounts. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.
Its primary brand portfolio includes LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum; Jacobs Kaffee; and Tang powdered beverages.
Mondelez sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities, as well as through independent sales offices and agents.
Shareholders receive a 2.14% dividend. The Deutsche Bank price target for the stock is $51, while the consensus target is $51.35. The shares closed trading on Tuesday at $41.18.
Starwood Property Trust
This top real estate company makes good sense for income investors now. Starwood Property Trust Inc. (NYSE: STWD) is an affiliate of global private investment firm Starwood Capital Group and is the largest commercial mortgage real estate investment trust (REIT) in the United States.
Its core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiaries LNR Property and Hatfield Philips International, Starwood Property Trust also operates as the largest commercial mortgage special servicer in the United States and one of the largest primary and special servicers in Europe.
Investors receive an outstanding 9.19% distribution. Deutsche Bank has a $24 price target, and the consensus target is $21.89. Shares closed Tuesday at $20.90.
This company has been fighting its way back now for over a year and may be a very solid contrarian play. Valeant Pharmaceuticals International Inc. (NYSE: VRX) operates as a multinational, specialty pharmaceutical and medical device company that develops, manufactures and markets a range of pharmaceuticals, over-the-counter (OTC) products and medical devices. The company operates through three segments.
The Bausch + Lomb/International segment provides pharmaceutical products, OTC products and medical device products, primarily consist of Bausch + Lomb products, with a focus on the vision care, surgical, consumer and ophthalmology prescription products in the United States; and pharmaceutical products, generic pharmaceutical products, OTC products, medical device products and Bausch + Lomb products in Canada, Europe, Asia, Australia and New Zealand, Latin America, Africa and the Middle East.
The Branded Rx segment sells gastrointestinal and dermatological products in the United States. The U.S. Diversified Products segment offers pharmaceutical products, OTC products and medical device products in the areas of neurology and certain other therapeutic classes, including aesthetics.
The $20 Deutsche Bank price target compares with the $16.75 consensus estimate. Shares closed most recently at $15.67.