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PNC Financial Services Group, Inc. (PNC) is a diversified financial services company based in the United States. PNC manages over $250 billion in assets, of which approximately $38 billion is deployed in equities. The following list is PNC's top buys in the December quarter, according to its most recent 13F filing with SEC.

Stock

Symbol

Shares Held as on 09/30/2011

Shares Held as on 12/31/2011

Change in shares

ConocoPhillips

COP

2,233,436

2,929,445

696,009

Comcast Corporation

CMCSA

1,275,367

3,007,988

1,732,621

Cisco Systems Inc.

CSCO

7,924,364

9,595,860

1,671,496

FMC Corp.

FMC

84,336

409,360

325,024

Xylem Inc.

XYL

0

629,924

629,924

Target Corp.

TGT

2,789,060

3,066,099

277,039

Kraft Foods Inc.

KFT

4,070,915

4,414,843

343,928

I like Cisco, Xylem and Kraft Foods among the above stocks, and would recommend buying them. However, one stock in the above list which I would recommend avoiding is Comcast.

Cisco designs, manufactures and sells Internet protocol-based networking and other products related to the communications and information technology industry and provide services associated with these products and their use. Recently the company delivered an impressive fiscal Q2 2012 results. Although its guidance for flat FQ3 revenue was below what some investors expected, I believe it has more to do with conservatism on the part of management rather than any actual slowdown in the business.

The company is seeing strength in its business and it can easily do better than its guidance for FQ3. In the long term, I expect Cisco to continue posting strong result helped by product cycle momentum in 10GE datacentre, LTE and video. Trading at 10x forward earning, with a 9% FCF yield, stock repurchases, and a 1.6% dividend yield Cisco appears to be an attractive investment opportunity.

Kraft Foods 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 14x. Its EPS forecast for the current year is 2.27 and next year is 2.52. According to the consensus estimates, Kraft's top line is expected to grow 10.40% in the current year and 3.10% next year. Trading at a forward PE of 14, Kraft's valuations are in line with its peers despite its above-average growth rate. I believe this will change going forward, as Kraft is planning to split up its high-growth Snacks business and the stable return Grocery business in FY12. This will highlight the above peer growth profile of the global snacks business and hence help the company achieve a better valuation.

Xylem is the largest publicly traded pure play water equipment company. XYL comprises four business units: water solutions, flow control, analytics and residential and commercial water. The company's products include analytical instruments, lighting and ventilation, water and wastewater treatment solutions, controllers and pump and accessories. I like the company from a long term perspective as I see a favorable macro backdrop for water investment from population growth; emerging market development; and urban migration and regulation.

One stock in the above list where I am not very positive is Comcast Corporation. Comcast Corporation appears to be a good sell rather than a buy, given its continued investment spending in NCBU along with macro uncertainty, which might adversely affect advertising spending. Although cable business reported strong last quarter results, it is expected to slow in 2012 due to product maturation and intense competition.

Source: PNC Financial Is Buying These Stocks