Wall Street's Top Picks For 2017: All In One Place
We are into the homestretch of 2016, and the markets have seen strong upside this year, benefiting from the domestic economy’s resilience and the election of Donald Trump.
With just four sessions to go, the Dow Jones Industrial Average has been a up a solid 14.4 percent, the S&P 500 has risen 10.8 percent and the NASDAQ Composite is 9.1 percent higher — with all the three major averages trading off their all-time closing highs.
Among the ten S&P sectors, eight have been in the green. Old economy stocks such as energy, material, industrial, financial, utility and telecom are all up by double-digit percentages. Technology stocks are also up decently. However, the healthcare sector has taken a hit.
Though it is tough to replicate the performance of 2016, given the tougher comparisons and the uncertainty around policies amid the political leadership transition, Wall Street does see some opportunities that are compelling.
Here is a compilation of some top picks recommended by Wall Street analyst for the year 2017:
RBC Top Small- And Large-Cap Picks For 2017
- Netflix, Inc. (NASDAQ: NFLX): Subscriber additions, New content and new international launches.
- Facebook Inc (NASDAQ: FB): Muted expectations concerning 2017 earnings and two messaging platforms with one billion users, namely WhatsApp and Messenger.
- Yelp Inc (NYSE: YELP): Conservative consensus estimate providing scope for outperformance, revenue and margin expansion opportunities.
Deutsche Bank’s Top Bank Picks for 2017
- Goldman Sachs Group Inc (NYSE: GS).
- Huntington Bancshares Incorporated (NASDAQ: HBAN).
- JPMorgan Chase & Co. (NYSE: JPM).
- Wells Fargo & Co (NYSE: WFC).
The firm believes higher Fed rates in 2017 will boost net interest margin and earnings per share, although the same is expected to hit tangible book value/capital and may reduce buybacks.
Top Picks Among Regional Gaming Stocks
- Boyd Gaming Corporation (NYSE: BYD).
Deutsche Bank’s Carlo Santarelli is favorably biased toward regional operators heading into 2017, given favorable macro-economic indicators and the potential for policy-related boosts to the regional gaming consumer.
RBC’s Top Tech Picks For 2017
- Apple Inc. (NASDAQ: AAPL): iPhone 8 supercycle of upgrade activity, growing services business and the possible repatriation of foreign profits.
- Broadcom Ltd (NASDAQ: AVGO): Deal integration, improved capital structure.
- NVIDIA Corporation (NASDAQ: NVDA): Tailwinds from virtual reality, artificial intelligence and autonomous driving.
- Cisco Systems, Inc. (NASDAQ: CSCO): Mix shift away from switching and routing, continued M&A and the potential for repatriation.
- Texas Instruments Incorporated (NASDAQ: TXN): Gross margin upside and sales growth acceleration driven by market share gains.
Mid- And Small-Cap Picks:
- Amphenol Corporation (NYSE: APH).
- Analog Devices, Inc. (NASDAQ: ADI).
- ARRIS International plc (NASDAQ: ARRS).
- CDW Corp (NASDAQ: CDW).
- Microsemi Corporation (NASDAQ: MSCC).
Northland Securities’ Top Pick For 2017
- Silicon Motion Technology Corp. (ADR) (NASDAQ: SIMO): Recent selloff creates significant opportunity for price appreciation — Outperform rating with $60 price target.
MKM Partners’ Top Picks For 2017
- Alibaba Group Holding Ltd (NYSE: BABA).
- Marriott International Inc (NASDAQ: MAR): Stronger corporate transient demand, accelerating share repurchases and execution of revenue and cost synergies from Starwood acquisition.
Altria Is Wells Fargo’s New Top Pick For 2017
- Altria Group Inc (NYSE: MO): Due to increased probability of the deal.
Akamai: Oppenheimer’s Top Mid-Cap Pick
- Akamai Technologies, Inc. (NASDAQ: AKAM): 2017 will see vertical integration, driving new revenue streams and disruption. Communication industry to benefit from the incoming Trump administration and Republican Congress.
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