Seeking Alpha
Long/short equity, contrarian
Profile| Send Message|
( followers)  

By Ian Hoffman

Below is a list of the best-performing equities with average daily trading volumes of 5M or greater. They are all up at least 20% on the year, have book values that exceed $20.00/share and at least nine analysts recommending that their firm's clients buy the stock.

Some of the big name companies below may be getting ahead of themselves and worth considering for short-term shorts.

1. Bank of America Corp. (NYSE:BAC)

Share Price Increase on the Year: 28.24%

Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services.

YTD Chart


Its stock currently trades around $7.30 with 10.54B shares out, giving it a market cap of roughly $78.39B. Institutional ownership stands at about 55% and the total reported short interest as of 01/13/12 was 186M shares. The forward P/E for BAC is 6.7. The consensus analyst 12-month price target is $9, with the highest estimate being $14.

2. MGM Resorts (NYSE:MGM)

Share Price Increase on the Year: 25.12%

MGM is a holding company engaged in gaming, hospitality and entertainment. It conducts its business through its wholly owned subsidiaries and primarily owns and operates casino resorts that include gaming, hotel, dining, entertainment, retail and other resort amenities.

YTD Chart

Its stock currently trades around $13.70 with 488.83M shares out, giving it a market cap of roughly $6.73B. Institutional ownership stands at about 56% and the total reported short interest as of 01/13/12 was 38.69M shares. The consensus analyst 12-month price target is $16, with the highest estimate being $19.

3. The Goldman Sachs Group, Inc. (NYSE:GS)

Share Price Increase on the Year: 23.27%

Goldman Sachs is a global investment banking, securities and investment management company providing a range of financial services to a client base that includes corporations, financial institutions, governments and high-net-worth individuals.

YTD Chart

Its stock currently trades around $115 with 492.31M shares out, giving it a market cap of roughly $56.42B. Institutional ownership stands at about 75% and the total reported short interest as of 01/13/12 was 7.26M shares. The forward P/E for GS is 8.5. The consensus analyst 12-month price target is $132.50, with the highest estimate being $205.

4. Morgan Stanley (NYSE:MS)

Share Price Increase on the Year: 23.26%

Morgan Stanley is a global financial services firm that, through its subsidiaries and affiliates, provides its products and services to a group of clients and customers, including corporations, governments, financial institutions and individuals.

YTD Chart

Its stock currently trades around $19.50 with 1.93B shares out, giving it a market cap of roughly $37.9B. Institutional ownership stands at about 62% and the total reported short interest as of 01/13/12 was 24.65M shares. The forward P/E for MS is 8.4. The consensus analyst 12-month price target is $23, with the highest estimate being $33.

5. Transocean Ltd. (NYSE:RIG)

Share Price Increase on the Year: 23.21%

Transocean is an international provider of offshore contract drilling services for oil and gas wells. It operates in two segments: contract drilling services and other operations.

YTD Chart

Its stock currently trades around $48.50 with 319.86M shares out, giving it a market cap of roughly $15.60B. Institutional ownership stands somewhere between 50%-67% (depending on who you ask) and the total reported short interest as of 01/13/12 was 3.71M shares. The forward P/E for RIG is 16.5. The consensus analyst 12-month price target is $60, with the highest estimate being $80.

6. Caterpillar, Inc. (NYSE:CAT)

Share Price Increase on the Year: 20.44%

Caterpillar is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, among other items.

YTD Chart

Its stock currently trades around $110.50 with 646.62M shares out, giving it a market cap of roughly $71.57. Institutional ownership stands at about 65% and the total reported short interest as of 01/13/12 was 18.4M shares. The forward P/E for CAT is 9.9. The consensus analyst 12-month price target is $131, with the highest estimate being $158.

Some of the above names are recovering from oversold conditions and moving into overbought territory. Some are just up big on news or earnings and forward guidance. Do a bit more digging and you may find yourself compelled to make a move, one way or another, on some of them.

Source: These 6 High-Flying, Big-Name Stocks May Be Getting Ahead Of Themselves