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The following is a list of the top ten stocks where PNC Financial Services is increasing its position.

Stock

Symbol

Shares Held - 06/30/2011

Shares Held - 09/30/2011

Change in shares

EQT Corporation

EQT

2204183

3000204

796021

Vodafone Group Plc

VOD

767423

2352649

1585226

Kraft Foods Inc.

KFT

3008722

4070915

1062193

McDonald's Corp.

MCD

3509464

3891054

381590

OGE Energy Corp.

OGE

256833

807765

550932

Bristol-Myers Squibb Company

BMY

6409946

7240458

830512

Target Corp.

TGT

2275790

2789060

513270

Joy Global Inc.

JOYG

165914

540634

374720

Whole Foods Market Inc.

WFM

471423

706557

235134

Baker Hughes Incorporated

BHI

711182

1036181

324999

Source: 13F filing

I believe EQT Corporation and Kraft Foods are good buys at current levels and there is a good likelihood of them outperforming going forward.

EQT Corporation is an integrated energy company conducting its business through three business segments: EQT Production, EQT Midstream and Distribution. EQT Production is a natural gas producer in the Appalachian Basin with 5.2 trillion cubic feet equivalent of proved reserves across 3.5 million acres. EQT Midstream provides gathering, transmission and storage services for the company’s produced gas and to independent third parties in the Appalachian Basin. Distribution, through its regulated natural gas distribution subsidiary, Equitable Gas Company, LLC distributes and sells natural gas to residential, commercial and industrial customers in southwestern Pennsylvania, West Virginia and eastern Kentucky, operates a small gathering system in Pennsylvania and provides off-system sales activities, which include the purchase and delivery of gas to customers.

EQT’s EPS forecast for the current year is $2.23 and next year is $2.78. According to consensus estimates, its top line is expected to grow 26.70% in the current year and 22.40% next year. It is trading at a forward P/E of 21.90. Out of 17 analysts covering the company, 13 are positive and have buy ratings, one has a sell rating and three have hold ratings.

EQT recently restated its intention to raise capital through either a JV or an MLP of its midstream business. This is likely to provide a near term catalyst for the stock, with high quality Marcellus assets backing the fundamentals. There is a good chance that a decision on this divesture will be taken by this year end. Going forward, in the medium term, EQT shares are expected to benefit from an accelerating Marcellus growth trend, peer-leading exposure to efficiency and productivity gains, and increased performance disclosure in the W. Virginia Marcellus. Also, the company’s current FY’12 guidance of 250 Bcfe appears conservative.

Kraft Foods Inc. manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. Kraft is trading at a forward PE of 13.57. Its EPS forecast for the current year is 2.27 and next year is 2.53. According to the consensus estimates, Kraft’s top line is expected to grow 10.30% in the current year and 3.40% next year. Trading at a forward PE of 13.57, Kraft’s valuations are in line with its peers despite of its above average growth rate. I believe this will change going forward as Kraft’s is planning to split up its high growth Snacks business and the stable return Grocery business in FY12. This will highlight above peer growth profile of the global snacks business and hence help company achieve a better valuation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: PNC Financial Services Is Increasing Its Stake In These Top Stocks