10 Large-Cap Stocks With Top Buy Ratings

NEW YORK (TheStreet) -- Anheuser-Busch InBev (BUD), LyondellBasell Industries (LYB), Apple (AAPL), Halliburton (HAL), Novartis (NVS) and Schlumberger (SLB) are among the large-cap stocks with buy ratings in the range of 89%-100%.

We have indentified these stocks from Belgium, Brazil, Netherlands, Russia, Switzerland and the U.S., and across diverse sectors such as energy, financial, healthcare, industrial, telecommunications, technology, chemical, and food and beverage. These stocks have a minimum market capitalization of $10 billion.

Besides receiving highest ratings from analysts, these stocks are expected to gain up to 38% over the next 12 months with a mean upside value of around 22%, according to analysts polled by Bloomberg.

In contrast, although stocks such as Telefonica ( TEF), NTT DoCoMo ( DCM), Nippon Telegraph & Telephone ( NTT), Canon ( CAJ), Credit Suisse Group ( CS), Sumitomo Mitsui Financial Group ( SMFG), Mizuho Financial Group ( MFG), Carnival ( CUK) and Posco ( PKX) have 100% buy ratings, we did not consider them as only a few analysts cover them.

10. Schlumberger ( SLB) is an oil services company providing technology, project management, and information solutions to the global oil and gas industry.

The company reported earnings of 76 cents per share for 2010 fourth quarter, compared to 67 cents per share in the year-ago period. According to analysts polled by Bloomberg, earnings per share are pegged at $3.87 for 2011 and $5.04 for 2012, up from $2.61 and $3.38 reported for 2009 and 2010, respectively.

The stock's return-on-equity during the past 12 months was 17.0%. In comparison, National-Oilwell Varco ( NOV), Weatherford International ( WFT), Cie Generale de Geophysique - Veritas ( CGV) and Complete Production Services ( CPX) had ROEs of 11.2%, 0.2%, -9.4%, and 11.2%, respectively.

Of the 35 analysts covering Schlumberger, 31 recommend buying, 3 suggest holding and 1 rates selling, representing 89% buy ratings. The average price target of analysts surveyed by Bloomberg is $103.1, 16% higher than the stock's current level.

9. Brazil's Itau Unibanco Holding ( ITUB) provides retail, commercial, corporate and private banking services.

Analysts polled by Bloomberg expect the company to report earnings of 46 cents per share for 2010 fourth quarter, compared to earnings of 42 cents per share and 38 cents per share reported in the year-ago and quarter-ago periods, respectively. Analysts foresee the company reporting earnings per share of $1.71 for 2010, $2.08 for 2011 and $2.41 for 2012, up from earnings of $1.13 per share reported for 2009.

The stock's return-on-equity during the past 12 months was 30.0%. In comparison, Banco Bradesco ( BBD), Banco Santander Brasil ( BSBR), Banco Santander ( STD), Credicorp ( BAP) and HSBC Holdings ( HBC) had ROEs of 24.9%, 3.2%, 11.4%, 22.2%, and 5.1%, respectively.

Of the 9 analysts covering Itau Unibanco Holding, 8 recommend buying and 1 rates holding, representing 89% buy ratings. The average price target of analysts surveyed by Bloomberg is $29.4, 38% higher than the current level. The stock is currently trading at forward price-to-earnings multiple of 13.8.

8. Enterprise Products Partners ( EPD) provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals.

The company is expected to report earnings per share of $1.90 for 2010, $1.94 for 2011 and $2.07 for 2012, according to analysts polled by Bloomberg.

Over the past one-year, the stock surged around 40.7%, while Kinder Morgan Energy Partners ( KMP), Energy Transfer Equity ( ETE), Energy Transfer Partners ( ETP) and Southern Union ( SUG) reported gains of 20%, 27%, 20% and 24%, respectively.

Of the 20 analysts covering Enterprise Products Partners, 18 recommend buying and 2 rate holding, representing 90% buy ratings. The average price target of analysts surveyed by Bloomberg is $46.1, 8% higher than the current level. The stock offers an attractive dividend yield of 5.70%.

7. Novartis ( NVS), a Switzerland-based holding company, is engaged in research and development and manufacturing of pharmaceutical and consumer healthcare products.

For 2010, the company reported earnings per share of $4.29, in comparison to $3.70 for 2009 and $3.62 for 2008. Analysts polled by Bloomberg expect the company to report earnings per share of $4.51 for 2011 and $4.73 for 2012.

The stock received 90% buy ratings from nine of the ten analysts covering the stock, while one analyst rated hold. Other stocks such as Pfizer ( PFE), Merck ( MRK), GlaxoSmithKline ( GSK), Alcon ( ACL), and Teva Pharmaceutical Industries ( TEVA) have buy ratings of 69%, 65%, 25%, 0% and 81%, respectively.

On average, analysts polled by Bloomberg expect Novartis to grow 17% over the next 12 months. At $56.2, the stock is currently trading at a PE multiple of 10.5 and EV-to-EBITDA multiple of 8.4.

6. Halliburton ( HAL) provides energy services and engineering and construction services, and manufactures products for the energy industry.

For 2010 fourth quarter, the company reported earnings of 68 cents per share, compared to 27 cents per share and 53 cents per share in the year-ago and quarter-ago periods, respectively. Analysts polled by Bloomberg expect earnings per share of $2.92 for 2011 and $3.55 for 2012, up from $1.97 and $1.28 reported for 2010 and 2009, respectively.

At $44.0, the stock is currently trading at a price-to-earnings multiple of 15.1, while Baker Hughes ( BHI), McDermott International ( MDR), and Helix Energy Solutions ( HLX) have PE multiples of 17.9, 17.3 and 23.1, respectively.

Of the 33 analysts covering Halliburton, 30 recommend buying and 3 rate holding, representing 91% buy ratings. Analysts surveyed by Bloomberg expect an average price target of $56.3, up 28% from the current level. The stock offers a dividend yield of 0.9%.

5. Republic Services ( RSG) is engaged in the collection and disposal of non-hazardous solid waste.

The company reported earnings of 41 cents per share for 2010 fourth quarter, compared to earnings of 9 cents per share and 35 cents per share in the year-ago and quarter-ago periods, respectively. Analysts surveyed by Bloomberg expect Republic Services to report earnings per share of $1.34 for 2010, $1.90 for 2011 and $2.18 for 2012, up from earnings of 37 cents and $1.30 per share for 2008 and 2009, respectively.

The stock received 92% buy ratings, or 11 of the 12 analysts covering the stock recommend buying, while 1 rates holding. Other stocks such as Waste Management ( WM), Waste Connections ( WCN), Clean Harbors ( CLH) and Casella Waste Systems ( CWST) have buy ratings of 50%, 67%, 54% and 57%, respectively.

Republic Services gained around 17.9% during the past one year and is likely to rise an average 19% over the next 12 months, as per analysts polled by Bloomberg. The stock is currently at a forward PE multiple of 17.9 and EV-to-EBITDA multiple of 7.4.

4. Mobile TeleSystems OJSC (MTS) ( MBT) provides mobile telephone services in Russia and other CIS countries.

For the September quarter, the group's revenue grew 10.8% year-over-year to $2.9 billion, and free cash-flow for the nine months ended Sept. 30, 2010 reached a remarkable $2.4 billion. Commenting on the results, Mikhail Shamolin, president and CEO of MTS, said in a statement, "We attribute this growth to the positive seasonal dynamics, subscriber additions and a general increase in usage in our core markets."

The stock has a 35% upside over the next 12 months with a consensus target price of $26.7, according to analysts polled by Bloomberg, whereas Vodafone Group ( VOD), Turkcell Iletisim Hizmet AS ( TKC), SK Telecom ( SKM), and Millicom International Cellular ( MICC) have upsides of 13%, 14%, 5% and 20%, respectively.

Of the 24 analysts covering Virgin Media, 22 recommend buying and 2 rate holding. The stock is currently at a forward PE multiple of 11.9.

3. Apple ( AAPL) designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music players and sells a variety of related software, services, peripherals and networking solutions. The company's products line includes Macintosh computers, iPhone, iPad, iPod, Apple TV, among others.

Apple had a tremendous first quarter for fiscal 2011 ended Dec. 31, 2010 with earnings per share of $6.43, in comparison to earnings per share of $3.67 and $4.64 during the year-ago and quarter-ago periods, respectively. Apple is seen reporting robust earnings per share of $22.35 for fiscal 2011 and $25.74 for fiscal 2012, up from earnings of $6.29 and $15.15 per share reported for fiscal years 2009 and 2010, respectively, as per analysts surveyed by Bloomberg.

The stock surged around 83.6% during the past one year, while Microsoft ( MSFT), Google ( GOOG), Intel ( INTC), Hewlett-Packard ( HPQ) and Dell ( DELL) returned around -0.1%, 15.4%, 9.0%, 1.9%, and 1.1%, respectively.

Of the 55 analysts covering Apple, 51 recommend buying and 4 rate holding. The stock's average price target is $428.6, 20% above current level, Bloomberg reports.

2. Netherlands' LyondellBasell Industries ( LYB) is a global chemical company.

For 2010 third quarter, growth in sales was 20% year-over-year to $10.3 billion, while earnings per share were 84 cents. On the near-term outlook, Jim Gallogly, LyondellBasell's CEO said in a statement, "Industry conditions have held up reasonably well during October. However, we expect to see the typical seasonal impacts in the Refining and Oxyfuels area as well as end-of-year holiday reduced sales to some customers. With these anticipated impacts, our outlook for the quarter is somewhat tempered compared to the strong second and third quarters."

The stock received 100% buy ratings, or 13 analysts covering the stock recommend buying. Other stocks such as Dow Chemical ( DOW), Repsol YPF ( REP), Braskem ( BAK), and Celanese ( CE) have buy ratings of 42%, 67%, 57%, and 71%, respectively.

The stock's average price target is $39.8, 11% above current level, analysts surveyed by Bloomberg say.

1. Anheuser-Busch InBev ( BUD) is engaged in producing, marketing, distributing and selling over 200 beer brands including global flagship brands such as Budweiser, Stella Artois and Beck's.

Anheuser-Busch is likely to report earnings of 76 cents per share for 2010 fourth quarter, as per analysts polled by Bloomberg, compared to earnings of 81 cents per share in the year-ago period. Earnings per share are expected at $2.83 for 2010, $3.78 for 2011 and $4.29 for 2012, report analysts.

The stock has a 25% upside over the next 12 months with a consensus target price of $70.5, according to analysts polled by Bloomberg, whereas Companhia de Bebidas das Americas ( ABV), Molson Coors Brewing ( TAP), and Boston Beer ( SAM) have upsides of 9%, 12% and 1%, respectively.

All the nine analysts covering Anheuser-Busch recommend buying. The stock is trading at a price-to-earnings multiple of 18.1 and has gained over 16.2% during the past one year.

>To see these stocks in action, visit the 10 Large-Cap Stocks With Top Buy Ratings portfolio on Stockpickr.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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