Caterpillar, Discover Financial and Other Illinois Primary Stock Picks

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Today, Illinois holds its Republican Primary, as the candidates hope to add to their delegate counts. Polls show a close race between frontrunners Mitt Romney and Rick Santorum. While the focus is on Illinois, let's have a look at the stocks of some of the many corporations headquartered in the Land of Lincoln and Obama. Many of the state's most well-known corporations -- All State
ALL
, Boeing
BA
, Deere & Co.
DE
, Kraft Foods
KFT
, Motorola Mobility
MMI
, United Continental
UAL
and Walgreen
WAG
-- have seen share price growth only in the low single digits since the beginning of the year. McDonald's
MCD
share price even is a bit lower year to date. Those stocks featured below, however, have seen growth of at least 20% in that time.
ACCO BrandsABD
has seen its share price rise almost 35% year to date, and it is up more than 118% in the past six months. The Lincolnshire-based office products maker posted better-than-expected Q4 EPS but revenues fell short of estimates. The $721.8 billion market cap company has an operating margin that is higher than the industry average. Over the past six months, the stock has outperformed competitors Avery Dennison
AVY
and 3M
MMM
.
See also: Credit Suisse Upgrades ACCO Brands to OutperformCaterpillarCAT
is about 26% higher than at the beginning of the year and less than 3% lower than the recent 52-week high. Last week, Jim Cramer called this DJIA and S&P 500 component a buy. The Peoria-based company has a market cap of $73.6 billion, a long-term EPS growth forecast of 24.3% and a return on equity of 41.6%. The stock has outperformed competitors such as CNH Global
CNH
and Deere & Co.
DE
over the past six months.
CF Industries
CF
shares have largely rebounded from a recent pullback and are trading more than 26% higher year to date. The Deerfield-based company posted record net income results for fourth-quarter and its fifth-straight quarter of double-digit year-over-year percentage revenue growth. It has a market cap of $12.0 billion and its dividend yield is 0.9%. Over the past six months, the stock has outperformed peers Agrium
AGU
and Potash
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POT
.
Discover Financial ServicesDFS
rose more than 35% year to date and its shares reached a new 52-week high yesterday. Analysts expect year-over-year growth in both EPS and revenues in tomorrow's first quarter report. Based in Riverwoods, the company has a return on equity of 29.9% and a P/E ratio of 7.9. Its market cap is $17.2 billion and the dividend yield is 1.2%. The stock has outperformed MasterCard
MA
and Visa
V
year to date.
See also: Goldman Sachs Raises PT to $36 on Discover FinancialFortune Brands Home & SecurityFBHS
is trading near a multiyear high and up about 26% since the beginning of the year. Shares leaped earlier this month when the company made
Fortune
magazine's 2012 List of the world's most admired companies. It has a $3.4 billion market cap and a long-term EPS growth forecast of 22.2%. The stock's performance was in line with competitor Masco
MAS
over the past year but it outperformed the broader markets.
Jones Lang LaSalle
's
JLL
share price is up almost 42% year to date but is still more than 11% lower than a year ago. The Chicago-based property management company also made
Fortune
magazine's 2012 List of the world's most admired companies. The $3.8 billion market cap company has seen revenues rise 12.2% over the past five years, and the long-term EPS growth forecast is 17.3%. The stock has outperformed the S&P 500 and the Dow over the past six months.
Tenneco
's
TEN
share price is more than 31% higher year to date, though it is about the same as it was a month ago. Back in February, the Lake Forest-based auto parts producer reported record fourth-quarter and full-year revenue results. Tenneco has a market cap is $2.4 billion. Its long-range EPS growth forecast is 33.0% and the PEG ratio is less than the industry average. Over the past six months, the stock has outperformed the likes of BorgWarner
BWA
.
ACTION ITEMS Bullish: Investors also may want to consider the following trades in Illinois-based companies:
  • Baxter International BAX is about 21% higher year to date.
  • CME Group CME is more than 21% higher year to date.
  • Hospira HSP is about 23% higher year to date.
  • Illinois Tool Works ITW is more than 24% higher year to date.
Bearish: Traders may prefer to consider these alternative positions:
  • Agrium AGU is up more than 29% year to date.
  • American Express AXP is up almost 22% year to date.
  • CNH Global CNH is up more than 22% year to date.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasShort IdeasTrading Ideas3MACCO BrandsAgriumAll StateAmerican ExpressAvery DennisonBaxter InternationalBoeingborgwarnerBuilding ProductsCaterpillarChicagoCME GroupCNH GlobalConsumer DiscretionaryData Processing & Outsourced ServicesDeerediscover financialFortune BrandsHospiraIllinoisillinois tool worksIndustrialsInformation TechnologyJones Lang LaSalleKraft FoodsMascomastercardMcDonald’smotorola mobilityRestaurantstennecounited continentalvisawalgreen
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