The solid firms on Wall Street that we cover on a daily basis always have one consistent habit. They roll with the markets up or down, and adjust their top picks based on the most current data available to them. With constant shifting metrics, and the markets trading at daily new all-time highs, a refreshed list is just what investors need.
In a new research report, the RBC Capital Markets’ equity research team released their U.S. equity Top Picks List update for June. We screened the list for the stocks with highest upside to the specified target price.
Advance Auto Parts Inc. (NYSE: AAP) makes the list, and auto-parts stores as a whole are having a fantastic year. The brutal winter weather wreaked havoc with cars in general, and the retailers have seen a direct benefit. Investors are paid a miniscule 0.2% dividend. RBC has a $149 price target for the stock. The Thomson/First Call consensus price target is $138.50. The stock closed Thursday at $127.43 a share. A move to the target is a 20% gain for shareholders.
CBS Corp. (NYSE: CBS) may be in the best position of all the broadcast networks and is one of the top picks at RBC. With an outstanding prime time lineup, solid sports franchises like the NFL, March Madness College Basketball, The Masters and other top programming, the venerable network has been an outstanding stock for shareholders. Investors are paid a small 0.8% dividend. The stock is up more than 60% in the past year. The RBC price target is $70. The consensus estimate is $63. CBS closed Wednesday at $60.48. A move to the target is a 17% gain.
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Marvell Technology Group Ltd. (NASDAQ: MRVL) is the tech stock investors have waited on for years for their ship to come in. The key to Marvell’s success is that it is gaining market share at Western Digital and the advent of SSDs has turned out to be a solid catalyst. In addition, hard disk drives are also being used for non-PC applications such as server storage and data centers. Marvell enjoys a 50% share of Western Digital’s enterprise business, which is significant. Investors are paid a 1.5% dividend. RBC has a $23 price target, and the consensus number is $16.82. Marvell closed trading Thursday at $15.22. A jump to the RBC target would be just shy of a 50% gain.
Monster Beverage Corp. (NASDAQ: MNST) is a top consumer discretionary name to buy at RBC. The company is increasing its convenience-store penetration through innovations. The company has had recent success launching Muscle Monster protein and energy drinks, a zero-calorie energy-drink line and other new products that have enabled it to grow market share. With high margins and a growing market share, the stock is a solid add. The RBC price target is $81, and the consensus target is $77.09. Monster closed trading Wednesday at $68.02. Hitting the RBC target would be a 17% gain.
SBA Communications Corp. (NASDAQ: SBAC) owns and operates wireless communications towers in the United States, Canada, Costa Rica, El Salvador, Guatemala, Nicaragua, Panama and Brazil. The company leases antenna space primarily to wireless service providers on towers and other structures that it owns, manages or leases from others. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term. The RBC price target is $115, and the consensus target is $109.67. SBA closed Wednesday at $100.08. A move to the RBC target would be a nice 15% gain.
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WebMD Health Corp. (NASDAQ: WBMD) is a moon-shot call at RBC. The company has a large 21% of the stock sold short, so some are very bearish. That could prove dangerous as analyst estimates for the stock have moved higher recently. The company also recently added $40 million to its stock buyback plan. RBC has a $70 target, and the consensus number is much lower at $53.60. WebMD closed Wednesday at $43.48. Hitting that huge RBC target would be an almost 63% gain.
One thing is for sure, RBC has not gone down the dangerous path of touting momentum stocks. With a pricey market and earnings guidance over for now, it would seem like any disappointments could start a selling slide that could grow in magnitude. Most of the RBC stocks are suitable for growth oriented portfolios.
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