Credit Suisse Adds Four New Stocks to Its Top Picks List

Credit Suisse like the other firms, focuses clients on their Top Picks list. They regularly add and delete names for a variety of reasons. Typically, added names are showing low valuations to their peer group, or they have achieved significant sales and revenue milestones. A good thing for investors is typically the last thing a major firm wants to do is add a stock to a top list and then see it head south.

Here are the four top names added to the Credit Suisse Top Picks list.

Anadarko Petroleum Corp. (NYSE: APC) is added to the Credit Suisse list and is one of the biggest independent oil and gas producers in the country, with exploration or production work in all major domestic drilling areas, as well as in South America, Africa, Asia and New Zealand. Worldwide, natural gas makes up just over half of Anadarko’s reserves, but 87% of the new wells it drilled in the United States last year were gas wells. The company has daily production of more than 2.5 billion cubic feet. Investors are paid a small 0.9% dividend. The Credit Suisse price target for this top new add is $105.50. The consensus price target is set at $102.13. Anadarko closed Wednesday at $85.41.

BankUnited Inc. (NYSE: BKU) is a top financial name to make the addition roster. Credit Suisse recently upgraded the stock to Buy. The firm feels the bank offers industry-leading growth and deserves a higher multiple. BankUnited is a bank holding company with consolidated total assets of $15.0 billion as of December 31, 2013, and it is the holding company of BankUnited N.A., a national bank headquartered in Miami Lakes, Fla., with 99 branches in 15 Florida counties and six banking centers in the New York metropolitan area. Shareholders are paid a 2.5% dividend. The Credit Suisse price objective is $37, and the consensus number is $35.50. The stock closed Wednesday at $33.45.

Dow Chemical Co. (NYSE: DOW) is a name to buy for investors in the materials and chemicals sector and is added to the Credit Suisse list. Dow reported strong fourth-quarter results on thicker plastics margins and higher agricultural sales. The company’s adjusted diluted earnings per share of $2.47 for the full year grew by 31% year over year. Dow also expanded the authorized share repurchase program from $1.5 billion to $4.5 billion. Investors are paid a very solid 3.1% dividend. The Credit Suisse price objective for the newly added name is $52.The consensus price target for the chemical giant is $48.89. Shares ended Wednesday at $49.91.

Superior Energy Services Inc. (NYSE: SPN) rounds out the top four new names added at Credit Suisse. The company serves the drilling, completion and production-related needs of oil and gas companies worldwide through its brand name drilling products and its integrated completion and well intervention services and tools, supported by an engineering staff who plan and design solutions for customers. The stock pays investors a 1.1% dividend. The Credit Suisse target price is $34, and the consensus figure stands at $33.06. Superior closed Wednesday at $29.18.

The new picks at Credit Suisse are established companies with long track records of success. Investors with a long-term stock horizon should do very well by adding any or all of them to a diversified portfolio.