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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

7 UBS Stock Picks for 2012

We are bullish about KBR. The company's high earnings per share of $3.06 are significantly higher than the industry's average of $0.4 and are the reason behind KBR's low price-to-equity ratio of 10.5 times. KBR's PEG ratio of 0.6 times is half the industry's average of 1.2 times, indicating that its shares are currently undervalued and are a good buy in the present circumstances. Steven Richman's East Side Capital had nearly $100 million invested in KBR at the end of September. The fund boosted its stake in the stock by 20% over the third quarter. McDermott (MDR) is an engineering and construction company. UBS has given the company a buy rating. With its $34 billion Ichthys LNG project finalized, McDermott has been selected to construct and install the subsea flow line for the Inpex company. This contract will be worth $1.5 billion and even if McDermott is able to book only half of the contract, it will benefit from 18% of the Sept. 30 backlog. Shares of the company are currently trading at $12.70 per share and are expected to reach a price target of $14 by the end of 2012. Earnings per share are likely to rise by a margin of 1 cent to 95 cents by the end of 2012.

We think MDR can outperform the market this year. The company has a tangible book value of approximately $1.6 billion, indicating that it's capable of protecting itself in times of recession and from tough competition. We believe that the approval of the Ichthys project is going to significantly raise McDermott's valuation for the year 2012. Steven Cohen's SAC Capital significantly boosted its stake in the stock during the third quarter.

iSoftStone Holdings (ISS) engages in the provision of information technology services mainly in China. UBS has given the company a buy rating. With the upcoming joint venture between ChinaSoft and Huawei, iSoftStone is also considering its own venture with Huawei. UBS speculates that iSoftStone will either generate a better deal than ChinaSoft or abandon its intentions altogether. Shares of the company are currently trading at $9.50 per share and are expected to reach a price target of $16, based on a price-to-equity ratio of 19 times. Also, earnings per share are expected to increase to $0.78 per share.

Stock quotes in this article: CSX, QCOM, KBR, MDR, ISS, VMW, ARUN 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs