Merrill Lynch removes 2 blue chips from US 1 list
With just over a month left in 2016, many of the top companies on Wall Street are making some changes to the lists of their high conviction stock picks for clients. With the market continuing to trade to near all-time highs, it makes sense to examine the lists and make some changes as the rest of the year could have additional volatility. While the political cycle should quiet down with the election over, rising interest rates could prove to be very volatile component.
In a recent research note, analysts at Merrill Lynch made a big move by removing two blue chips from the firm’s wellrespected US 1 list of stocks to buy. The portfolio managers removed a top pharmaceutical company, and a big-time tech stock also comes out. We also review the three top-yielding dividend stocks remaining in the US 1 list.
This top pharmaceutical was removed from the US 1 list but remains rated Buy at the firm. Eli Lilly and Co. (NYSE: LLY) is a global health care company with numerous core products in a number of primary-care pharmaceutical markets. The company generates revenues from its pharmaceutical product and animal health segments.
The product portfolio includes Zyprexa (for schizophrenia and bipolar disorder), Gemzar (pancreatic cancer), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder), Erbitux (cancer) and Alimta (chemotherapy). Eli Lilly also has a strong presence in the diabetes market.
The company posted third-quarter sales and earnings well below Wall Street’s expectations, prompting shares to plummet to a four-month low before rebounding. The stock is down almost 10% on the year and offering investors an outstanding entry point. Shareholders receive a 3.05% dividend. Merrill Lynch lowered its price objective for the stock to $90 from $105, and the Wall Street consensus price target is $97.05. Shares closed Monday at $67.20. semiconductor business, QCT.
The analysts are bullish on the
The shares closed Monday at $67.10.
This company has had an incredible run this year but is off over 10% in less than six weeks. AT&T Inc. (NYSE: T) is the world’s largest provider of pay TV, with TV customers in the United States and 11 Latin American countries. In the U.S., the AT&T wireless network has the nation’s selfdescribed strongest 4G LTE signal and most reliable 4G LTE. The company also helps businesses worldwide serve their customers better with mobility and highly secure cloud solutions. Investors receive a 4.96% dividend. The $46 Merrill Lynch price target compares with the consensus price objective of $40.76. Shares closed Monday at $39.54.
The former Coca-Cola Enterprises reported solid earnings, and merger rumors are starting to fly again as well. Coca-Cola European Partners PLC (NYSE: CCE) is the leading Western European marketer, producer and distributor of nonalcoholic ready-to-drink beverages and one of the world’s largest independent Coca-Cola bottlers.
Investors receive a 2.27% dividend. The $44.50 Merrill Lynch price target is lower than the consensus target of $44.83. The shares closed on Monday at $33.47.