5. PepsiCo (PEP)
Company Profile: Pepsi is a global food, snack and beverage company. Its brands include Pepsi, Mountain Dew, Tropicana, Gatorade, Lay's, Doritos and Lipton.Current Share Price: $69.92 (May 11) Potential Upside: 17% based on a price target of $82 Morgan Stanley's Take: Analyst Dara Mohsenian notes that Pepsi's stock underperformed in the second half of 2010, but adds that it's trading at a discount on a number of historical measures. Mohsenian says the multiple on Pepsi's stock should "continue to expand as investors become more comfortable with full-year [earnings-per-share] visibility." Pepsi currently has a forward price-to-earnings multiple of 14, a slight discount to the S&P 500 as well as rival Coca-Cola (KO).
4. Honeywell (HON) Company Profile: Honeywell is a conglomerate that makes security technologies, automotive products and chemicals. Current Share Price: $61.40 (May 11) Potential Upside: 22% based on a price target of $75 Morgan Stanley's Take: Analyst Scott Davis trumpets Honeywell's safety-products business, noting that personal protection equipment (PPE) is a $20 billion industry growing at twice the rate of gross domestic product. "The business is just 6% of Honeywell's overall sales but is growing fast," Davis writes. "With about 10% market share, Honeywell is the leader along with 3M (MMM), but the industry is still fragmented and could offer plenty of room for growth via acquisitions," Davis adds.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV