With the stock down 8% from its 52-week high, investors looking for a bargain in energy should consider Baker Hughes.
The bear case for HP is over.
Schlumberger should command a fair market value of $130 to $135 in the next 12 to 18 months.
On the basis of long-term revenue and margins expansion, these shares should be worth $55 to $60 in the next 12 to 18 months.
If Target can surprise with an earnings beat (or two) in the next six quarters, these shares can reach $65 to $70 in the next 12 to 18 months.
These share may not bottom until around $32. And Walmart is encroaching.
These shares can command a fair-market value of $115, which still represents 17% premium.
Pepsi's innovative qualities should spur more market share gains over Coke in the coming years.
Based on next year's earnings estimates of $5.12 per share, Home Depot is the best bargain in retail.
Until Coke's premium product can stand on its own, Pepsi is the better buy.