With the bull market now 6 1/2 years old, some of Wall Street’s investing pros warn that it’s a good time to begin preparing for an eventual end to the bull market.
Others think that you can stay bullish, but they recommend having greater exposure to some industries than others.
“We believe Energy and Industrial positions should generally be reduced heading into yearend as operating disappointments are likely through 1Q16, in favor of over weights on Health Care and consumer exposed Tech companies and select Financials and Consumer companies,” Deutsche Bank’s David Bianco wrote in a note to clients Sunday.
Bianco offered a list of the big companies to invest in for the upcoming year. They’re all rated Buy by Deutsche Bank analysts. We’ve compiled that list, which features companies with market caps over $10 billion, price-to-earnings ratios below 22, and positive 2015 earnings per share growth.
The companies are assembled below by industry, along with Deutsche Bank’s price target, the company’s share price when the note was published, the company’s price-to-earnings based on 2015 earnings per share, and Deutsche’s 2016 projections for earnings per share growth. Additionally, for the companies that have reported Q3 earnings, we’ve pulled a quote from an executive during the earnings conference call if available.
Check out the stock picks below.
Bank of America
Ticker: BAC
Industry: Banks
Price Target: $19
Current Price: $17.09
Current P/E: 12.1
Projected 2016 EPS Growth: 10%
Executive Comment: “So, in the context of the environment we faced, we are operating what we feel is a solid quarter, and as evidenced, the continuing progress on our strategy, our strategy of responsible growth with our customs,” said CEO Brian Moynihan.
JP Morgan Chase
Ticker: JPM
Industry: Banks
Price Target: $72
Current Price: $65.21
Current P/E: 10.9
Projected 2016 EPS Growth: 3%
Executive Comment: “We continue to invest in our businesses and the underlying drivers are growing strongly and we’re gaining share. And we have more than successfully delivered against each of our capital, balance sheet and expense targets,” said CFO Marianne Lake.
Keycorp
Ticker: KEY
Industry: Banks
Price Target: $16
Current Price: $13.38
Current P/E: 12.3
Projected 2016 EPS Growth: 10%
Executive Comment: “The other thing that we’ve said before about our business model that I think is really important is when there is a little bit of dislocation in the market, we feel like that’s a great opportunity for us because there are certain shops that are focused on one product, the ability to go to one market,” said Chris Gorman, president of corporate banking. “And as we think about serving our clients and we can look broadly across markets, we think when there is a little dislocation and everything isn’t flashy and green, that’s a nice opportunity for us to really come in and serve our clients.”
See the rest of the story at Business Insider
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