Which large-cap stocks are the best bang for your buck in 2016? Deutsche Bank has a list of 31 companies for you to consider.

Analysts from the German investment firm suggest that investors should stick with companies that showed leadership in 2015 -- namely health care and technology companies.

"Health Care and Tech are why we are bullish on the S&P 500 for 2016, but Energy and Industrials worry us a great deal," according to a December 8 note to clients. "Most of the rest of the market, both the S&P and the Russell 2000, seems fully valued except a few big Banks, Utilities, Airlines, and some of our specific stock picks."

Further, "companies that can reliably generate (EPS growth + dividend yields) that equal or exceed their cost of equity deserve a high PE in a low interest rate world, especially the less cyclical with strong [free cash flow] and balance sheets backing healthy shareholder distributions," the note said. "Health Care and Tech best fit these bullish criteria and remain fundamentally sound sectors with extremely undemanding PE's given interest rates. These are the only two non-financial sectors without PE's above their historical norms and high likelihood of earning growth in 2016."

As well, large diversified banks will benefit from rate hikes, and if long-term yields stay low despite Fed hikes, utilities companies should see a rise in price-to-earnings ratios. "Be opportunistic at Utilities upon any initial negative reaction around Fed liftoff unless 10 year yields jump over 3%," the note read.

On the other hand, Deutsche Bank is less optimistic about stocks within the energy and industrials sectors (with the exception of a few specialized sub-sectors) as well as small-cap stocks, particularly small banks once the Fed raises rates.

"We believe Industrial positions should be cut heading into 2016, as operating disappointments likely persist through 1Q16," the note said. "But we do think the future will be brighter at segments of Industrials and other industries exposed to global industrial activity. We think Airlines, Chemicals, Semiconductors, and select business spending exposed Tech companies offer better reward/risk for those who believe in stronger mature global economies led by consumer spending and more productivity enhancing investment spending."

The stocks on this list are all rated "buy" and from industries that Deutsche Bank analysts rate "overweight." Going into 2016, the investment firm rates financials - specifically diversified banks and capital markets companies; health care - pharmaceuticals, biotech, health care equipment, health care technology and life sciences tools and services; information technology; airlines; telecommunication services; and utilities -- electric utilities, gas utilities, independent power producers and multi-utilities as industries to be "overweight" in.

The companies have market caps above $10 billion, price-to-earnings ratios on a 2015 EPS basis of less than 22x and 2015 EPS growth of greater than 0.

The group is paired with ratings from TheStreet Ratings, TheStreet's proprietary ratings tool, for another perspective. And when you're done check out Goldman Sachs' 35 stocks that will outperform in 2016.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equity market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014, beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

BAC Chart BAC data by YCharts

1. Bank of America Corp. (BAC)
Industry: Financials/Banks
Year-to-date return: -5.3%

Deutsche Bank Price Target: $19
P/E on 2015 EPS: 13x

TheStreet Said: TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 2043.1% when compared to the same quarter one year prior, rising from -$232.00 million to $4,508.00 million.
  • Net operating cash flow has significantly increased by 7856.00% to $34,902.00 million when compared to the same quarter last year. In addition, BANK OF AMERICA CORP has also vastly surpassed the industry average cash flow growth rate of 310.31%.
  • After a year of stock price fluctuations, the net result is that BAC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • BANK OF AMERICA CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF AMERICA CORP reported lower earnings of $0.35 versus $0.91 in the prior year. This year, the market expects an improvement in earnings ($1.43 versus $0.35).
  • You can view the full analysis from the report here: BAC

 

JPM Chart JPM data by YCharts

2. JPMorgan Chase & Co. (JPM)
Industry: Financials/Banks
Year-to-date return: 4.4%

Deutsche Bank Price Target: $72
P/E on 2015 EPS: 11.5x

TheStreet Said: TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate JPMORGAN CHASE & CO (JPM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • JPMORGAN CHASE & CO has improved earnings per share by 24.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.28 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.98 versus $5.28).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 22.3% when compared to the same quarter one year prior, going from $5,565.00 million to $6,804.00 million.
  • Net operating cash flow has significantly increased by 1125.88% to $25,124.00 million when compared to the same quarter last year. In addition, JPMORGAN CHASE & CO has also vastly surpassed the industry average cash flow growth rate of 310.31%.
  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 89.85%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 27.66% trails the industry average.
  • You can view the full analysis from the report here: JPM

 

MTB Chart MTB data by YCharts

3. M&T Bank Corp. (MTB)
Industry: Financials/Banks
Year-to-date return: -4%

Deutsche Bank Price Target: $132
P/E on 2015 EPS: 16.8x

TheStreet Said: TheStreet Ratings team rates M & T BANK CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate M & T BANK CORP (MTB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, growth in earnings per share and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MTB's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 126.14% to $689.76 million when compared to the same quarter last year. Despite an increase in cash flow of 126.14%, M & T BANK CORP is still growing at a significantly lower rate than the industry average of 310.31%.
  • The gross profit margin for M & T BANK CORP is currently very high, coming in at 89.98%. Regardless of MTB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 23.17% trails the industry average.
  • M & T BANK CORP's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, M & T BANK CORP reported lower earnings of $7.42 versus $8.20 in the prior year. This year, the market expects an improvement in earnings ($7.56 versus $7.42).
  • You can view the full analysis from the report here: MTB

 

PNC Chart PNC data by YCharts

4. PNC Financial Services Group Inc. (PNC)
Industry: Financials/Banks
Year-to-date return: 2.2%

Deutsche Bank Price Target: $101
P/E on 2015 EPS: 13.1x

TheStreet Said: TheStreet Ratings team rates PNC FINANCIAL SVCS GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate PNC FINANCIAL SVCS GROUP INC (PNC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • PNC FINANCIAL SVCS GROUP INC has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PNC FINANCIAL SVCS GROUP INC reported lower earnings of $7.30 versus $7.36 in the prior year. This year, the market expects an improvement in earnings ($7.33 versus $7.30).
  • Net operating cash flow has significantly increased by 77.56% to $1,971.00 million when compared to the same quarter last year. Despite an increase in cash flow of 77.56%, PNC FINANCIAL SVCS GROUP INC is still growing at a significantly lower rate than the industry average of 310.31%.
  • The gross profit margin for PNC FINANCIAL SVCS GROUP INC is currently very high, coming in at 91.12%. Regardless of PNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 26.02% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.2%. Since the same quarter one year prior, revenues slightly dropped by 0.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: PNC
STI Chart STI data by YCharts

5. SunTrust Banks Inc. (STI)
Industry: Financials/Banks
Year-to-date return: 3%

Deutsche Bank Price Target: $49
P/E on 2015 EPS: 12.5x

TheStreet Said: TheStreet Ratings team rates SUNTRUST BANKS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate SUNTRUST BANKS INC (STI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and attractive valuation levels. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • STI's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 312.47% to $1,243.00 million when compared to the same quarter last year. In addition, SUNTRUST BANKS INC has also modestly surpassed the industry average cash flow growth rate of 310.31%.
  • The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 92.82%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 25.04% trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • SUNTRUST BANKS INC's earnings per share declined by 5.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNTRUST BANKS INC increased its bottom line by earning $3.23 versus $2.41 in the prior year. This year, the market expects an improvement in earnings ($3.55 versus $3.23).
  • You can view the full analysis from the report here: STI

 

USB Chart USB data by YCharts

6. U.S. Bancorp (USB)
Industry: Financials/Banks
Year-to-date return: -4.7%

Deutsche Bank Price Target: $49
P/E on 2015 EPS: 14.1x

TheStreet Said: TheStreet Ratings team rates U S BANCORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate U S BANCORP (USB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • USB's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 390.37% to $2,854.00 million when compared to the same quarter last year. In addition, U S BANCORP has also vastly surpassed the industry average cash flow growth rate of 310.31%.
  • U S BANCORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, U S BANCORP increased its bottom line by earning $3.08 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($3.16 versus $3.08).
  • The gross profit margin for U S BANCORP is currently very high, coming in at 88.41%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 27.35% trails the industry average.
  • After a year of stock price fluctuations, the net result is that USB's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • You can view the full analysis from the report here: USB

  

WFC Chart WFC data by YCharts

7. Wells Fargo & Co. (WFC)
Industry: Financials/Banks
Year-to-date return: -1.7%

Deutsche Bank Price Target: $60
P/E on 2015 EPS: 13.4x

TheStreet Said: TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, expanding profit margins and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • WFC's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WELLS FARGO & CO's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, WELLS FARGO & CO increased its bottom line by earning $4.10 versus $3.89 in the prior year. This year, the market expects an improvement in earnings ($4.15 versus $4.10).
  • Net operating cash flow has increased to $18,937.00 million or 25.72% when compared to the same quarter last year. Despite an increase in cash flow of 25.72%, WELLS FARGO & CO is still growing at a significantly lower rate than the industry average of 310.31%.
  • The gross profit margin for WELLS FARGO & CO is currently very high, coming in at 92.60%. Regardless of WFC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 25.35% trails the industry average.
  • After a year of stock price fluctuations, the net result is that WFC's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
  • You can view the full analysis from the report here: WFC

 

AMP Chart AMP data by YCharts

8. Ameriprise Financial Inc. (AMP)
Industry: Financials/Capital Markets
Year-to-date return: -17.7%

Deutsche Bank Price Target: $138
P/E on 2015 EPS: 12.4x

TheStreet Said: TheStreet Ratings team rates AMERIPRISE FINANCIAL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate AMERIPRISE FINANCIAL INC (AMP) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, AMERIPRISE FINANCIAL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • AMERIPRISE FINANCIAL INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AMERIPRISE FINANCIAL INC increased its bottom line by earning $8.32 versus $6.45 in the prior year. This year, the market expects an improvement in earnings ($9.23 versus $8.32).
  • 45.11% is the gross profit margin for AMERIPRISE FINANCIAL INC which we consider to be strong. Regardless of AMP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.72% trails the industry average.
  • AMP, with its decline in revenue, slightly underperformed the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 7.2%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income has decreased by 5.5% when compared to the same quarter one year ago, dropping from $420.00 million to $397.00 million.
  • You can view the full analysis from the report here: AMP

 

BK Chart BK data by YCharts

9. Bank of New York Mellon Corp. (BK)
Industry: Financials/Capital Markets
Year-to-date return: 4.5%

Deutsche Bank Price Target: $50
P/E on 2015 EPS: 15.5x

TheStreet Said: TheStreet Ratings team rates BANK OF NEW YORK MELLON CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate BANK OF NEW YORK MELLON CORP (BK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BK's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • BANK OF NEW YORK MELLON CORP's earnings per share declined by 20.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BANK OF NEW YORK MELLON CORP increased its bottom line by earning $2.16 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($2.85 versus $2.16).
  • Net operating cash flow has increased to $1,351.00 million or 47.97% when compared to the same quarter last year. Despite an increase in cash flow of 47.97%, BANK OF NEW YORK MELLON CORP is still growing at a significantly lower rate than the industry average of 275.70%.
  • The gross profit margin for BANK OF NEW YORK MELLON CORP is currently very high, coming in at 97.93%. Regardless of BK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BK's net profit margin of 21.53% compares favorably to the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • You can view the full analysis from the report here: BK

 

BLK Chart BLK data by YCharts

10. BlackRock Inc. (BLK)
Industry: Financials/Capital Markets
Year-to-date return: -3.5%

Deutsche Bank Price Target: $393
P/E on 2015 EPS: 18.6x

TheStreet Said: TheStreet Ratings team rates BLACKROCK INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate BLACKROCK INC (BLK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BLK's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 44.33% is the gross profit margin for BLACKROCK INC which we consider to be strong. Regardless of BLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLK's net profit margin of 28.96% significantly outperformed against the industry.
  • Net operating cash flow has slightly increased to $1,351.00 million or 5.21% when compared to the same quarter last year. Despite an increase in cash flow of 5.21%, BLACKROCK INC is still growing at a significantly lower rate than the industry average of 275.70%.
  • BLACKROCK INC's earnings per share declined by 6.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $19.26 versus $16.88 in the prior year. This year, the market expects an improvement in earnings ($19.72 versus $19.26).
  • You can view the full analysis from the report here: BLK

 

 

TROW Chart TROW data by YCharts

11. T. Rowe Price Group Inc. (TROW)
Industry: Financials/Capital Markets
Year-to-date return: -14.9%

Deutsche Bank Price Target: $84
P/E on 2015 EPS: 16.6x

TheStreet Said: TheStreet Ratings team rates PRICE (T. ROWE) GROUP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate PRICE (T. ROWE) GROUP (TROW) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • TROW's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, PRICE (T. ROWE) GROUP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 46.84% is the gross profit margin for PRICE (T. ROWE) GROUP which we consider to be strong. Regardless of TROW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TROW's net profit margin of 26.41% significantly outperformed against the industry.
  • The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Capital Markets industry average. The net income has decreased by 8.7% when compared to the same quarter one year ago, dropping from $303.60 million to $277.10 million.
  • PRICE (T. ROWE) GROUP's earnings per share declined by 5.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PRICE (T. ROWE) GROUP increased its bottom line by earning $4.55 versus $3.89 in the prior year. For the next year, the market is expecting a contraction of 0.7% in earnings ($4.52 versus $4.55).
  • You can view the full analysis from the report here: TROW

 

ABT Chart ABT data by YCharts

12. Abbott Laboratories (ABT)
Industry: Health Care/Health Care Equipment & Supplies
Year-to-date return: flat

Deutsche Bank Price Target: $53
P/E on 2015 EPS: 21.1x

TheStreet Said: TheStreet Ratings team rates ABBOTT LABORATORIES as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate ABBOTT LABORATORIES (ABT) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 8.0% when compared to the same quarter one year prior, going from $537.00 million to $580.00 million.
  • ABT's revenue growth trails the industry average of 29.7%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.10, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for ABBOTT LABORATORIES is rather high; currently it is at 61.86%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.26% is above that of the industry average.
  • You can view the full analysis from the report here: ABT

MDT Chart MDT data by YCharts

13.Medtronic Inc. (MDT)
Industry: Health Care/Health Care Equipment & Supplies
Year-to-date return: 7.5%

Deutsche Bank Price Target: $90
P/E on 2015 EPS: 18.3x

TheStreet Said: 

TheStreet Ratings team rates MEDTRONIC PLC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate MEDTRONIC PLC (MDT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MDT's very impressive revenue growth greatly exceeded the industry average of 29.7%. Since the same quarter one year prior, revenues leaped by 61.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $1,279.00 million or 40.08% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.98%.
  • MDT's debt-to-equity ratio of 0.69 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.74 is very high and demonstrates very strong liquidity.
  • After a year of stock price fluctuations, the net result is that MDT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • You can view the full analysis from the report here: MDT
SYK Chart SYK data by YCharts

14. Stryker Corp. (SYK)
Industry: Health Care/Health Care Equipment & Supplies
Year-to-date return: -1.9%

Deutsche Bank Price Target: $112
P/E on 2015 EPS: 18.5x

TheStreet Said: TheStreet Ratings team rates STRYKER CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate STRYKER CORP (SYK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 428.1% when compared to the same quarter one year prior, rising from $57.00 million to $301.00 million.
  • SYK's revenue growth trails the industry average of 29.7%. Since the same quarter one year prior, revenues slightly increased by 1.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.37, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, STRYKER CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for STRYKER CORP is rather high; currently it is at 68.88%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.43% is above that of the industry average.
  • You can view the full analysis from the report here: SYK

 

AGN Chart AGN data by YCharts

15. Allergan Plc (AGN)
Industry: Health Care/Pharmaceuticals
Year-to-date return: 19.5%

Deutsche Bank Price Target: $308
P/E on 2015 EPS: 19.9x

TheStreet Said: TheStreet Ratings team rates ALLERGAN PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate ALLERGAN PLC (AGN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AGN's very impressive revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues leaped by 90.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • ALLERGAN PLC has improved earnings per share by 46.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALLERGAN PLC reported poor results of -$8.65 versus -$5.43 in the prior year. This year, the market expects an improvement in earnings ($15.40 versus -$8.65).
  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that AGN's debt-to-equity ratio is low, the quick ratio, which is currently 0.52, displays a potential problem in covering short-term cash needs.
  • Compared to other companies in the Pharmaceuticals industry and the overall market, ALLERGAN PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: AGN

ENDP Chart ENDP data by YCharts

16. Endo International Plc (ENDP)
Industry: Health Care/Pharmaceuticals
Year-to-date return: -19%

Deutsche Bank Price Target: $84
P/E on 2015 EPS: 13.8x

TheStreet Said: TheStreet Ratings team rates ENDO INTERNATIONAL PLC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate ENDO INTERNATIONAL PLC (ENDP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The gross profit margin for ENDO INTERNATIONAL PLC is rather high; currently it is at 64.23%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -140.86% is in-line with the industry average.
  • ENDO INTERNATIONAL PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ENDO INTERNATIONAL PLC continued to lose money by earning -$0.18 versus -$4.67 in the prior year. This year, the market expects an improvement in earnings ($4.57 versus -$0.18).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has significantly decreased by 316.7% when compared to the same quarter one year ago, falling from -$252.08 million to -$1,050.44 million.
  • The debt-to-equity ratio of 1.40 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ENDP maintains a poor quick ratio of 0.82, which illustrates the inability to avoid short-term cash problems.
  • You can view the full analysis from the report here: ENDP

 

MYL Chart MYL data by YCharts

17. Mylan Inc. (MYL)
Industry: Health Care/Pharmaceuticals
Year-to-date return: -10%

Deutsche Bank Price Target: $66
P/E on 2015 EPS: 11.9x

TheStreet Said: TheStreet Ratings team rates MYLAN NV as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate MYLAN NV (MYL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 29.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 121.19% to $974.80 million when compared to the same quarter last year. In addition, MYLAN NV has also vastly surpassed the industry average cash flow growth rate of -0.29%.
  • The gross profit margin for MYLAN NV is rather high; currently it is at 59.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MYL's net profit margin of 15.90% significantly trails the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • MYLAN NV's earnings per share declined by 34.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MYLAN NV increased its bottom line by earning $2.34 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($4.33 versus $2.34).
  • You can view the full analysis from the report here: MYL

 

PRGO Chart PRGO data by YCharts

18. Perrigo Co. Plc (PRGO)
Industry: Health Care/Pharmaceuticals
Year-to-date return: -11%

Deutsche Bank Price Target: $187
P/E on 2015 EPS: 19.3x

TheStreet Said: TheStreet Ratings team rates PERRIGO CO PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate PERRIGO CO PLC (PRGO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 41.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
  • PERRIGO CO PLC has improved earnings per share by 6.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PERRIGO CO PLC reported lower earnings of $0.94 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($7.75 versus $0.94).
  • Net operating cash flow has decreased to $136.00 million or 30.29% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • PRGO has underperformed the S&P 500 Index, declining 8.77% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • You can view the full analysis from the report here: PRGO

AAL Chart AAL data by YCharts

19. American Airlines Group Inc. (AAL)
Industry: Industrials/Airlines
Year-to-date return: -18.3%

Deutsche Bank Price Target: $54
P/E on 2015 EPS: 5x

TheStreet Said: TheStreet Ratings team rates AMERICAN AIRLINES GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate AMERICAN AIRLINES GROUP INC (AAL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, notable return on equity, good cash flow from operations, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AMERICAN AIRLINES GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERICAN AIRLINES GROUP INC turned its bottom line around by earning $3.92 versus -$8.48 in the prior year. This year, the market expects an improvement in earnings ($9.03 versus $3.92).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Airlines industry and the overall market, AMERICAN AIRLINES GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 426.86% to $1,180.00 million when compared to the same quarter last year. In addition, AMERICAN AIRLINES GROUP INC has also vastly surpassed the industry average cash flow growth rate of 138.06%.
  • 40.14% is the gross profit margin for AMERICAN AIRLINES GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.81% trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 3.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: AAL

 

DAL Chart DAL data by YCharts

20. Delta Air Lines Inc. (DAL)
Industry: Industrials/Airlines
Year-to-date return: 0.63%

Deutsche Bank Price Target: $55
P/E on 2015 EPS: 10.8x

TheStreet Said: TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 268.3% when compared to the same quarter one year prior, rising from $357.00 million to $1,315.00 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • DELTA AIR LINES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DELTA AIR LINES INC reported lower earnings of $0.75 versus $12.29 in the prior year. This year, the market expects an improvement in earnings ($4.65 versus $0.75).
  • The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.35 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Net operating cash flow has significantly increased by 52.20% to $2,067.00 million when compared to the same quarter last year. Despite an increase in cash flow of 52.20%, DELTA AIR LINES INC is still growing at a significantly lower rate than the industry average of 139.37%.
  • You can view the full analysis from the report here: DAL

 

LUV Chart LUV data by YCharts

21. Southwest Airlines Co. (LUV)
Industry: Industrials/Airlines
Year-to-date return: 4.1%

Deutsche Bank Price Target: $54
P/E on 2015 EPS: 13.8x

TheStreet Said: TheStreet Ratings team rates SOUTHWEST AIRLINES as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate SOUTHWEST AIRLINES (LUV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, good cash flow from operations, expanding profit margins and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 7.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SOUTHWEST AIRLINES reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SOUTHWEST AIRLINES increased its bottom line by earning $1.65 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($3.54 versus $1.65).
  • Net operating cash flow has significantly increased by 247.91% to $835.00 million when compared to the same quarter last year. In addition, SOUTHWEST AIRLINES has also vastly surpassed the industry average cash flow growth rate of 139.37%.
  • 39.41% is the gross profit margin for SOUTHWEST AIRLINES which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, LUV's net profit margin of 11.34% significantly trails the industry average.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • You can view the full analysis from the report here: LUV

UAL Chart UAL data by YCharts

22. United Continental Holdings Inc. (UAL)
Industry: Industrials/Airlines
Year-to-date return: -13.3%

Deutsche Bank Price Target: $74
P/E on 2015 EPS: 4.9x

TheStreet Said: TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate UNITED CONTINENTAL HLDGS INC (UAL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • UNITED CONTINENTAL HLDGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNITED CONTINENTAL HLDGS INC increased its bottom line by earning $2.79 versus $1.30 in the prior year. This year, the market expects an improvement in earnings ($11.98 versus $2.79).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Airlines industry. The net income increased by 421.2% when compared to the same quarter one year prior, rising from $924.00 million to $4,816.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Airlines industry and the overall market, UNITED CONTINENTAL HLDGS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 36.29% is the gross profit margin for UNITED CONTINENTAL HLDGS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 46.73% significantly outperformed against the industry average.
  • You can view the full analysis from the report here: UAL
CSCO Chart CSCO data by YCharts

23. Cisco Systems Inc. (CSCO)
Industry: Information Technology/Communications Equipment
Year-to-date return: -3.9%

Deutsche Bank Price Target: $35
P/E on 2015 EPS: 15.7x

TheStreet Said: TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CSCO's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CISCO SYSTEMS INC has improved earnings per share by 37.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CISCO SYSTEMS INC increased its bottom line by earning $1.73 versus $1.49 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $1.73).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 33.0% when compared to the same quarter one year prior, rising from $1,828.00 million to $2,431.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, CISCO SYSTEMS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: CSCO

 

ADS Chart ADS data by YCharts

24. Alliance Data Systems Corp. (ADS)
Industry: Information Technology/IT Services
Year-to-date return: -2.1%

Deutsche Bank Price Target: $341
P/E on 2015 EPS: 18.9x

TheStreet Said: TheStreet Ratings team rates ALLIANCE DATA SYSTEMS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate ALLIANCE DATA SYSTEMS CORP (ADS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues rose by 20.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $467.41 million or 22.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.15%.
  • 43.30% is the gross profit margin for ALLIANCE DATA SYSTEMS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.08% trails the industry average.
  • ALLIANCE DATA SYSTEMS CORP's earnings per share declined by 24.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALLIANCE DATA SYSTEMS CORP increased its bottom line by earning $7.87 versus $7.43 in the prior year. This year, the market expects an improvement in earnings ($15.03 versus $7.87).
  • The debt-to-equity ratio is very high at 7.85 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, ADS has managed to keep a strong quick ratio of 2.23, which demonstrates the ability to cover short-term cash needs.
  • You can view the full analysis from the report here: ADS

 

CTSH Chart CTSH data by YCharts

25. Cognizant Technology Solutions Corp. (CTSH)
Industry: Information Technology/IT Services
Year-to-date return: 14.3%

Deutsche Bank Price Target: $69
P/E on 2015 EPS: 20.7x

TheStreet Said: TheStreet Ratings team rates COGNIZANT TECH SOLUTIONS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate COGNIZANT TECH SOLUTIONS (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues rose by 23.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CTSH's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.10, which clearly demonstrates the ability to cover short-term cash needs.
  • COGNIZANT TECH SOLUTIONS has improved earnings per share by 12.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COGNIZANT TECH SOLUTIONS increased its bottom line by earning $2.35 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.35).
  • Net operating cash flow has increased to $817.90 million or 40.24% when compared to the same quarter last year. In addition, COGNIZANT TECH SOLUTIONS has also vastly surpassed the industry average cash flow growth rate of -11.15%.
  • You can view the full analysis from the report here: CTSH

 

AMAT Chart AMAT data by YCharts

26. Applied Materials Inc. (AMAT)
Industry: Information Technology/Semiconductors & Semiconductor Equipment
Year-to-date return: -23.8%

Deutsche Bank Price Target: $20
P/E on 2015 EPS: 16x

TheStreet Said: TheStreet Ratings team rates APPLIED MATERIALS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate APPLIED MATERIALS INC (AMAT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, AMAT has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
  • APPLIED MATERIALS INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $1.12 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $1.12).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 31.3% when compared to the same quarter one year prior, rising from $256.00 million to $336.00 million.
  • You can view the full analysis from the report here: AMAT

 

LRCX Chart LRCX data by YCharts

27. Lam Research Corp. (LRCX)
Industry: Information Technology/Semiconductors & Semiconductor Equipment
Year-to-date return: -1.1%

Deutsche Bank Price Target: $95
P/E on 2015 EPS: 15.4x

TheStreet Said: TheStreet Ratings team rates LAM RESEARCH CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate LAM RESEARCH CORP (LRCX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 9.8%. Since the same quarter one year prior, revenues rose by 38.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, LRCX has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LAM RESEARCH CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAM RESEARCH CORP increased its bottom line by earning $3.70 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($6.05 versus $3.70).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 104.6% when compared to the same quarter one year prior, rising from $141.08 million to $288.68 million.
  • You can view the full analysis from the report here: LRCX

 

HPQ Chart HPQ data by YCharts

28. HP Inc. (HPQ)
Industry: Information Technology/Technology Hardware, Storage & Peripherals
Return from Nov. 2 (when it split the company): -12.4%

Deutsche Bank Price Target: $16
P/E on 2015 EPS: 7x

TheStreet Said: TheStreet Ratings team rates HP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate HP INC (HPQ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.
  • The revenue fell significantly faster than the industry average of 25.3%. Since the same quarter one year prior, revenues slightly dropped by 9.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market on the basis of return on equity, HP INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • HPQ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.94%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
  • You can view the full analysis from the report here: HPQ
AEP Chart AEP data by YCharts


29. American Electric Power Co. Inc. (AEP)

Industry: Electric Utilities
Year-to-date return: -7.5%

Deutsche Bank Price Target: $62
P/E on 2015 EPS: 14.9x

TheStreet Said: TheStreet Ratings team rates AMERICAN ELECTRIC POWER CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate AMERICAN ELECTRIC POWER CO (AEP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and attractive valuation levels. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AEP's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 6.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMERICAN ELECTRIC POWER CO has improved earnings per share by 5.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMERICAN ELECTRIC POWER CO increased its bottom line by earning $3.31 versus $3.04 in the prior year. This year, the market expects an improvement in earnings ($3.72 versus $3.31).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Electric Utilities industry average. The net income increased by 5.3% when compared to the same quarter one year prior, going from $493.00 million to $519.00 million.
  • Net operating cash flow has increased to $1,707.00 million or 11.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -7.89%.
  • You can view the full analysis from the report here: AEP

 

EXC Chart EXC data by YCharts

30. Exelon Corp. (EXC)
Industry: Electric Utilities
Year-to-date return: -29%

Deutsche Bank Price Target: $37
P/E on 2015 EPS: 10.7x

TheStreet Said: TheStreet Ratings team rates EXELON CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate EXELON CORP (EXC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • EXC's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 7.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Even though the current debt-to-equity ratio is 1.03, it is still below the industry average, suggesting that this level of debt is acceptable within the Electric Utilities industry. Despite the fact that EXC's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.52 is high and demonstrates strong liquidity.
  • EXELON CORP's earnings per share declined by 40.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, EXELON CORP reported lower earnings of $1.87 versus $2.00 in the prior year. This year, the market expects an improvement in earnings ($2.51 versus $1.87).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.07%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 40.00% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.
  • You can view the full analysis from the report here: EXC

 

NEE Chart NEE data by YCharts

31. NextEra Energy Inc. (NEE)
Industry: Electric Utilities
Year-to-date return: -7.5%

Deutsche Bank Price Target: $112
P/E on 2015 EPS: 17.4x

TheStreet Said: TheStreet Ratings team rates NEXTERA ENERGY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate NEXTERA ENERGY INC (NEE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NEE's revenue growth has slightly outpaced the industry average of 0.8%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • NEXTERA ENERGY INC has improved earnings per share by 28.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEXTERA ENERGY INC increased its bottom line by earning $5.60 versus $3.93 in the prior year. This year, the market expects an improvement in earnings ($5.65 versus $5.60).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Electric Utilities industry average. The net income increased by 33.2% when compared to the same quarter one year prior, rising from $660.00 million to $879.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electric Utilities industry and the overall market, NEXTERA ENERGY INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 46.14% is the gross profit margin for NEXTERA ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.74% is above that of the industry average.
  • You can view the full analysis from the report here: NEE