This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Raymond James' Best Stock Picks May Double in 2012

(Adds comment from CEO on markets next year.)

BOSTON ( TheStreet) -- Raymond James (RJF - Get Report), an investment bank with $271 billion in client assets, said its best stock selections, which include Nvidia (NVDA - Get Report), may double in the next year.

The bank, more known for owning the naming rights to the NFL's Tampa Bay Buccaneers football stadium in Florida, has had a list of stock ideas that has outperformed larger rivals and benchmarks for more than a decade. Its asset-management unit oversees $32 billion in funds.

The St. Petersburg, Florida-based firm, which doesn't offer updates during the year, says the companies are chosen by its analysts. All companies carry a "buy" rating based on fundamentals, growth prospects and risk. Management's ability to deliver on growth expectations during a slow economic environment also plays a role.

How successful have Raymond James analysts been? In 14 of the previous 15 years, the group of picks outperformed the S&P 500 Index. In the previous decade, they rose 17.5%, better than the S&P 500's 6.2% increase.

Raymond James' 2011 picks were a disappointment, however, with a decline of 1.2%. Most the poor performance was pinned to Bank of America (BAC), which has tumbled more than 60%. On the positive side, Panera Bread (PNRA) has been the best-performing pick of the year, up nearly 30%.

The investing environment has been tough, though, and next year's favorites would have been disappointments in 2011. The group has fallen 3.7% this year, with three names down more than 24%. The S&P 500, a broader measure of the largest stocks in the U.S., has slumped 3.3%. Of Raymond James' group of favorite stocks, Nuance Communications (NUAN) is the best performer so far this year, up 30%, while BMC Software (BMC) lags the most, with a 29% drop.

"Once again, our analysts have been challenged to find the best stocks to own in 2012 from among the approximately 900 companies we actively follow," Chief Investment Officer David Henwood wrote in an introduction to this year's list. The encouraging elements during a year of great market turbulence, Henwood says, are that corporate earnings and cash flows have grown impressively for most companies.

Raymond James' chief executive officer, Paul Reilly, said today on CNBC that he expects "flattish" markets next year as the U.S. and Europe grapple with the same fundamental problems as they did in 2011.

Analysts at Raymond James offer their best picks, with returns expected to be between 15% and 104%, based on price forecasts. The 13 stocks on Raymond James' list are arranged below in order of potential upside, based on the firm's 12-month price target and the stock's price as of Dec. 14.






13. Brinker International (EAT)

Company Profile: Brinker International owns or franchises more than 1,500 casual dining restaurants in 32 countries under the names Chili's Grill & Bar and Maggiano's Little Italy.

Share Price: $24.21 (Dec. 14)

Potential Upside: 15.7% based on a price target of $28

Investment Thesis: Analyst Bryan Elliott says Brinker's is in phase II of its Chili's transformation, which should lead to a big margin and free cash flow opportunity.

"Brinker shares have been range-bound for most of 2011 despite management consistently meeting its goals from Phase I of the transformation (improved labor productivity)," Elliott writes. "We expect similar success with Phase II initiatives (a significant kitchen technology upgrade and a major store remodel program). If we are correct, investor sentiment should improve, which could materially increase EAT's valuation metrics."

Interested in more on Brinker International? See TheStreet Ratings' report card for this stock.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BMC $0.00 0.00%
LNC $58.63 -0.61%
NVDA $20.86 -0.17%
SPN $23.50 -0.55%
RJF $58.54 -0.22%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs