6 Large-Cap Stocks to Consider

NEW YORK (TheStreet) -- Teva Pharmaceutical (TEVA), Eni (E), JPMorgan Chase (JPM), Vale (VALE), Petroleo Brasileiro (PBR), Rio Tinto (RIO) could deliver robust gains in the next 12 months, according to Wall Street analysts.

These six large-cap stocks span diverse sectors: banking, mining, oil & gas and pharmaceuticals. These stocks have a minimum market capitalization of $30 billion. They should outperform their peers and the broader markets, according to analysts' 12-month price targets.

6. Eni is an integrated oil, gas and petrochemical company that operates in 77 countries.

Oil and natural gas production declined 15% during the second quarter of 2011 because of the shutdown of operations in Libya. However, operating profit and net profit rose 8% and 4%, respectively, from the year-earlier quarter.

During the first half of 2011, four new fields came on-stream in Congo, Italy and the U.S, the company reports. The company acquired interest in two gas discoveries in the Timor Sea and exploration acreage in Indonesia. Eni also said it has signed an agreement with Sonatrach to pursue shale gas development in Algeria. Eni experienced exploration success during the first half in the U.S., Norway, Venezuela, the U.K. and Angola, adding 415 million barrels to its reserve base.

According to consensus 12-month price target of analyst, the stock is expected to gain 55% over the next year. It is trading at a price-to-earnings ratio of 5.8, based on estimated 2011 earnings. Sixty percent of analysts covering the stock give it a buy rating.

5. JPMorgan Chase is a global financial services firm operating in commercial banking, investment banking, asset management and private equity.

The company reported 2011 second-quarter net income of $5.4 billion, vs. $4.8 billion in the first quarter of the prior year. JPMorgan's investment banking and commercial banking operations fared well, while credit card charge-offs improved during the quarter. On the mortgage front, net charge-offs remain elevated and management expects credit losses in this segment to remain significant.

Regarding the company's balance sheet, CEO Jamie Dimon said, "We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%. Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically. We estimate that our Basel III Tier 1 Common ratio was approximately 7.6% at the end of the second quarter. This level is well in excess of what is required today under existing rules and is greater than the level we expect will be required under the proposed rules for up to five years."

JPMorgan provided credit and raised more than $990 billion capital and originated mortgages, offered credit cards, increased credit to small businesses, and lent to nonprofit organizations, government agencies and corporations.

The stock is trading at a P/E of 6.6 based on estimated 2011 earnings. On average, analysts expect the stock to rise 57% over the next year.

4. Teva Pharmaceutical is an Israel-based maker of generic drugs, specialty pharmaceuticals and pharmaceutical ingredients. It's the largest generic drug maker in the world.

Net revenue reported for the second quarter was $4.2 billion, up 11% from the corresponding period in 2010. The Gross profit margin during fourth quarter of 2010 was a healthy 57.3%. The company's cash flow from operations stood at $1.3 billion, along with free cash flow of $897 million.

Teva's performance during the second quarter saw increased contributions from its European business. It also saw double-digit growth in markets like Latin America and Asia. Strong growth was observed in several branded franchises like women's health.

Another positive is the settlement of patent litigation in relation to the launch of generic Lotrel and generic Neurontin.

Revenue guidance for fiscal 2011 stood at $18.5 billion to $19 billion, with EPS ranging from $4.90 to $5.20.

On average, analysts expect the stock to gain 63% over the next year. Seventy-nine percent of analysts rate the stock a buy. Shares are trading at a P/E of 7 based on estimated 2011 earnings.

3. Vale is a metals and mining giant that produces iron ore and iron ore pellets.

During the second quarter of 2011, the company reported operating revenue of $15.3 billion, up 55% year over year. Sales to Asia contributed 52.1% toward total second-quarter revenue, up from 49.6% in the first quarter of 2011.

Operating income and net profit surged more than 60% each to $9 billion and $6.4 billion, respectively. The operating margin increased to 51.7% from 47.9% in the previous year's June quarter.

Eight-seven percent of analysts rate the stock a buy. On average, analysts expect the stock to gain 64% over the next year. Vale is trading at a P/E or 4.6 based on estimated 2012 earnings.

2. Petroleo Brasileiro is an integrated Brazilian oil and gas company.

Net income increased 37% in the first half of 2011, boosted by a 2% uptick in total oil and gas production. Higher crude oil prices and volumes during the year buoyed the company's exploration and production segments, while downstream operations were negatively affected.

The company has completed three extended well tests in the northeast region of the Aruana, Lula field and Brava in the post-salt region of the Campos Basin. Petroleo recently acquired Libra oil field in the Santos Basin with a high-replacement ratio of 144%.

The company has released a five-year (2011-2015) business plan with an increased focus on E&P, especially in the pre-salt. The total investment outlay stands at $224.7 billion during this period.

The stock is trading at 6.2 times its estimated 2011 earnings. On average, analysts expect the stock to gain 70% over the next year.

1. Rio Tinto is a global metal and mining player, especially aluminum, copper, coal and iron ore. The company has operations in more than 50 countries with bulk production coming from Australia and North America.

During the second quarter of 2011, earnings before interest, taxes, depreciation and amortization rose 27%, while net profit increased 30%. The company observed strong demand from Asia, and better pricing boosted finance, although volumes in the first half were lower compared with the corresponding period of 2010.

On the operational front, Tom Albanese, Rio's CEO, said, "We have some of the best quality growth projects in iron ore, copper and coking coal. These projects are on track and, as we finalize our studies for the expansion of our industry-leading Pilbara iron ore operations to 333 Mt/a, we have accelerated the timeline by six months to the first half of 2015. We have secured further growth options in new territories, notably the successful Riversdale acquisition which delivers both thermal and coking coal opportunities in Mozambique, one the world's premier coal basins. We also reached an agreement with the Government of Guinea, paving the way for first shipment of iron ore from Simandou by mid-2015."

Rio has increased its share buyback plan by $2 billion to a total $7 billion, and the repurchases are expected to complete by the first quarter of 2012. The stock is trading at 6 times 2011 earnings. On average, analysts expect shares to rise 105% over the next year.

>>To see these stocks in action, visit the 6 Large-Cap Stocks to Consider portfolio on Stockpickr.

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