9. Altria (MO)
Company Profile: Altria is the parent company for Philip Morris USA, John Middleton, U.S. Smokeless Tobacco Company, Ste. Michele Wine Estates and Philip Morris Capital. The company's brands include Marlboro, Parliament, Virginia Slims, Stag's Leap Wine Cellars and Basic.Sector Representation: Consumer staples Share Price: $28.31 (Dec. 5) Potential Upside: 9.5% based on a price target of $31 Investment Thesis: Lisa Lewandowski says that tobacco is the firm's preferred staples industry, and that Altria gets the nod because it is the highest yielding S&P 500 tobacco stock. "Altria is the largest U.S. cigarette producer, with about a 50% market share," she writes. "While the tobacco litigation environment has improved in recent years, consumption trends continue to decline. We expect price growth, cost cutting and share repurchases to drive above category earnings growth and we expect returns to shareholders to rise. As such, we believe Altria should trade at a premium to peers."
8. Union Pacific (UNP) Company Profile: Union Pacific operates a railroad franchise that covers 23 states in the western U.S., extending as far east as Chicago and New Orleans. Sector Representation: Industrials Share Price: $105.30 (Dec. 5) Potential Upside: 12.1% based on a price target of $118 Investment Thesis: Analyst Ken Hoexter says that Union Pacific comes up under the firm's screens for yield and high quality. Specifically, he highlights Union Pacific as a solid investment opportunity in a slow-growth environment. "We continue to believe the rail group will improve service metrics and raise core rates," Hoexter writes. "Union Pacific has improved its operating ratio from the mid-80s to 70% most recently, which has led to sustained upper-teens earnings growth. Ongoing benefits look to be derived as it moves to reprice the approximately 12% of its business that has not re-priced since 2004."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV