New Additions To The Credit Suisse Top Picks List

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This past week, Credit Suisse added
Anadarko PetroleumAPC
,
BankUnitedBKU
,
Dow ChemicalDOW
and
Superior Energy ServicesSPN
to its Top Picks list. Like other financial services firms, Credit Suisse has a list of stocks in which its analysts have complete faith. These four additions to the list are established companies with track records of success. They may have better valuations than their peers, or they may have reached some significant milestone. Here is a quick look at how these four stocks have fared and what analysts in general expect from them.
See also:
7 Of The Most Hated Stocks In The MarketAnadarko Petroleum
Barron's suggested this week that, Tronox Liability notwithstanding, now was the time to buy Anadarko shares. The company sports a market capitalization of around $43 billion, with a dividend yield near 0.8 percent. Its forward earnings multiple is much less than the trailing price-to-earnings (P/E) ratio. Eleven of the 34 analysts surveyed by Thomson/First Call rate the stock at Strong Buy, and 17 more also recommend buying shares. The mean price target, or where analysts expect the share price to go, is more than 16 percent higher than the current share price. Credit Suisse sees even more upside than that. Shares are up more than eight percent year to date, despite pulling back a bit on Friday. But the share price has been less than the 200-day moving average since December. Over the past six months, the stock has underperformed peers Apache and EOG Resources, and the broader markets as well.
BankUnited
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Blackstone Group, Carlyle Group and others sold out their stakes in this Florida-based regional bank last week. Its market cap is more than $3 billion, and its dividend yield is about 2.5 percent. Its P/E ratio is greater than the industry average, but the return on equity is more than 18 percent. Five of the nine analysts surveyed recommend buying shares, and the rest rate the stock at Hold. They see a little room for shares to run, as their mean price target is about four percent higher than the current share price. The Credit Suisse price target suggests about eight percent upside potential. The share price is about nine percent higher than a month ago, and it reached a new multiyear high last week. It is now well above the 50-day and 200-day moving averages. The stock has outperformed the likes of First Citizens Bancshares and First Niagara Financial over the past six months.
Dow Chemical
This provider of raw materials for use in the manufacture of consumer and industrial products said it will build a new R&D facility in Texas. The company has a market cap of more than $59 billion. Its dividend yield is about 3.0 percent, and the return on equity is more than 22 percent. Just nine of the 23 polled analysts recommend buying shares, but only two of them rate the stock at Underperform. The share price has overrun their mean price target, meaning that they see no further upside. But the Credit Suisse target is more than four percent higher than the current share price. Shares are trading near the multiyear high reached last week, and the share price is north of the 50-day and 200-day moving averages. Over the past six months, the stock has outperformed not only competitor DuPont, but the S&P 500 and the Dow Jones Industrial Average (DJIA) as well.
See also:Berkshire Hathaway: Playing Catch-Up With The MarketSuperior Energy Services
This Houston-based oilfield services company blamed weather-related disruptions and restructuring costs for the net loss in its most recently reported quarter. It has a market cap of less than $5 billion, and it offers a dividend yield of around 1.1 percent. The long-term earnings per share growth forecast is less than eight percent. For at least three months, the consensus recommendation of the analysts surveyed has been to buy shares. A move to the analysts' mean price target would represent a more than 10 percent gain for shareholders. The Credit Suisse price target is almost 13 percent higher than the current share price. The stock also hit a new 52-week high last week, and the share price is about 15 percent higher than at the beginning of the year. The 50-day and 200-day moving averages appear set to form a golden cross. The stock has outperformed larger competitor Schlumberger and the DJIA over the past six months.
At the time of this writing, the author had no position in the mentioned equities.
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Posted In: Trading Ideasanadarko petroleumapacheBankUnitedBlackstone GroupCarlyle GroupCredit Suissedow chemicalDuPontEOG ResourcesFirst Citizens BancsharesFirst Niagara FinancialSchlumbergerSuperior Energy Services
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