Investing

5 Raymond James Analyst Favorite Picks With Huge Implied Upside

Gilead Sciences

This stock is trading at a very reasonable 9.55 times estimated 2019 earnings. Gilead Sciences Inc. (NASDAQ: GILD) is a biopharmaceutical company that discovers, develops and commercializes therapies for the treatment of HIV/AIDS, liver disease, cancer and inflammation. The acquisition of Kite Pharmaceutical in 2017 allowed for entry into the CAR-T space, indicating a renewed focus in oncology.

The company’s products include Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults; and Harvoni, Sovaldi, Viread and Hepsera products for the treatment of liver disease.

Investors in Gilead Sciences receive a very solid 3.98% dividend. The $85 Raymond James price objective compares with the $80.45 consensus price target, as well as the most recent closing price of $63.26 per share.

Occidental Petroleum

This company made huge news with a Warren Buffett backed purchase of Anadarko Petroleum. Occidental Petroleum Corp. (NYSE: OXY) is an oil-levered multinational organization with principal business segments in oil and gas and in chemicals.

The oil and gas segment explores for, develops, produces and markets crude oil and natural gas, primarily in the U.S. Permian Basin, Colombia, Bolivia, Libya, Oman, Qatar and Yemen. Meanwhile, the chemicals segment manufactures and markets basic chemicals, vinyls and performance chemicals.

The shares have underperformed since the Anadarko acquisition was announced, but the investment case anchored by yield has not changed. With a rock-solid balance sheet and a commitment to dividend coverage, investors look safe for now. Occidental has paid quarterly cash dividends continuously since 1975 and has increased its dividend each year since 2002.

Occidental Petroleum provides shareholders a sizable 7.70% dividend. The Raymond James analysts have set a massive $80 price target. The Wall Street consensus target is much lower $54.85, and the stock closed most recently at $41.03 a share.

ServiceNow

This stock has had an incredible run, but it was hit hard in the summer and is offering a great entry point. ServiceNow Inc. (NYSE: NOW) develops and sells a hosted, subscription-based suite of services designed to automate various IT department functions, such as help desk, operations management and change/release management.

The company also sells a number of applications that automate various self-service related applications outside of the IT department, such as HR onboarding, facilities requests and governance, risk and compliance.

The Raymond James price target was last seen at $342. The posted consensus target is $317.75, and the shares closed on Thursday at $263.18 apiece.

These five Raymond James analyst favorite stock picks have substantial upside potential to the price targets. While all are more suited for growth accounts with higher risk tolerance, they all make solid portfolio additions at current price levels.

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