I have looked for stocks with recent broker upgrades and relatively high ROE (Return on Equity).
This list is a quick pick list only, which requires further research into each of the stocks before making an investment decision. However, I believe it can give some food for thought if you are looking for solid return on equity stocks and recent possible positive fundamental changes.
1) The Boeing Company (BA), together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide.
On June 24, 2012, The Boeing Company was upgraded from Perform to Outperform at Oppenheimer.
The company has Return on Equity Ratio of 95.26%. Other market ratios: P/E Ratio: 12.39, Forward P/E Ratio: 12.65, P/S Ratio: 0.73, P/B Ratio: 10.66, PEG Ratio: 1.11.
- On June 26, 2012, The Boeing Company announced an agreement to collaborate on the KC-390 aircraft program. Under this agreement, Boeing and Embraer will share some specific technical knowledge and evaluate markets where they may join their sales efforts for medium-lift military transport opportunities.
- On June 26, 2012, ICO Global Communications (Operations) Ltd. [ICO], a subsidiary of Pendrell Corporation, announced that it has withdrawn its petition for review to the California Supreme Court in connection with its litigation against The Boeing Company and certain of its subsidiaries.
The median target price projected by analysts is $87.00, which means 21.5% upside potential from today's price $71.58.
2) The TJX Companies, Inc. (TJX) operates as an off-price apparel and home fashions retailer in the United States and internationally.
On June 20, 2012, The TJX Companies, Inc. was upgraded from Hold to Strong Buy at Wells Fargo.
The company has Return on Equity Ratio of 51.10%. Other market ratios: P/E Ratio: 19.41, Forward P/E Ratio: 15.41, P/S Ratio: 1.30, P/B Ratio: 9.25, PEG Ratio: 1.48.
The median target price projected by analysts is $46.00, which means 10.6% upside potential from the current price of $41.60.
3) CF Industries Holdings, Inc. (CF), through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide.
On June 24, 2012, CF Industries Holdings, Inc. was upgraded from Sell to Buy at Dahlman Rose.
The company has Return on Equity Ratio of 36.64%. Other market ratios: P/E Ratio: 8.02, Forward P/E Ratio: 9.20, P/S Ratio: 1.93, P/B Ratio: 2.53, PEG Ratio: 0.82.
The median target price projected by analysts is $215.00, which means 13.1% upside potential from today's price $190.04.
4) Potash Corporation of Saskatchewan Inc. (POT), together with its subsidiaries, produces and sells fertilizers and related industrial and feed products primarily in the United States and Canada.
On June 24, 2012, Potash Corp. of Saskatchewan, Inc. was upgraded from Sell to Buy at Dahlman Rose.
The company has Return on Equity Ratio of 36.55%. Other market ratios: P/E Ratio: 13.51, Forward P/E Ratio: 11.45, P/S Ratio: 4.80, P/B Ratio: 4.48, PEG Ratio: 1.10.
The median target price projected by analysts is $54.00, which means 23.7% upside potential from the current of price $43.64.
5) Netflix, Inc. (NFLX) provides Internet subscription services for TV shows and movies in the United States and internationally.
On June 25, 2012, Netflix, Inc. was upgraded from Strong Sell to Hold at Janney Montgomery Scott.
The company has Return on Equity Ratio of 34.35%. Other market ratios: P/E Ratio: 22.80, Forward P/E Ratio: 31.77, P/S Ratio: 1.11, P/B Ratio: 5.64, PEG Ratio: 1.21.
The median target price projected by analysts is $95.00, which means 41% upside potential from the current price of $67.36.
6) Agrium Inc. (AGU) engages in the retail of agricultural products and services worldwide. The company operates in three segments: Retail, Wholesale, and Advanced Technologies.
On June 24, 2012, Agrium Inc. was upgraded from Hold to Buy at Dahlman Rose.
The company has Return on Equity Ratio of 25.03%. Other market ratios: P/E Ratio: 10.20, Forward P/E Ratio: 9.36, P/S Ratio: 0.85, P/B Ratio: 2.08, PEG Ratio: 1.48.
The median target price projected by analysts is $100.00, which means 14.6% upside potential from the current price of $87.28.
Comparison Charts
Below is the chart with the stock price changes as a percentage for the selected companies for the last one year period.
The chart below shows Return on Equity history for the selected companies.
BA Return on Equity data by YCharts
The chart below shows historical Return on Invested Capital ratio for the selected companies.
BA Return on Invested Capital data by YCharts
The chart below shows historical Net Profit Margin for the selected companies.
BA Profit Margin data by YCharts
The chart below shows historical Gross Profit Margin for the selected companies.
BA Gross Profit Margin data by YCharts
Sources: Yahoo Finance, Google Finance, Finviz, YCharts.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
