Top Investment Bank: Stocks With the Highest Summer Upside Potential

stock market

JPMorgan (NYSE:JPM) is out with a big, bullish call on cyclical stocks for the summer.

They say the selloff is overdone, that they’re insanely cheap, and that sentiment is already too negative.

JP Morgan (NYSE:JPM) has identified its top 20 cyclical stocks based on the following criteria.

  • They have an overweight rating by JP Morgan (NYSE:JPM)
  • The companies have a market cap over $4 billion
  • They operate in cyclical sectors like technology, industrials, discretionary or materials
  • Have the highest potential upside to JP Morgan’s target price

#20 Cliffs Natural Resources Inc (NYSE:CLF)

#20 Cliffs Natural Resources Inc

Image: Cliffs Natural Resources

Market cap: $12.3 billion
2012 P/E estimate: 6.5x

2012 EPS estimate: $14.01

P/B ratio: 2.88x

Cliffs Natural Resources Inc. is an international mining and natural resources company that specializes in mining for iron ore and coal.

Data provided by JP Morgan

#19 Liberty Media Holding Corp. (NASDAQ:LBTYA)

#19 Liberty Media Holding Corp.

Image: AP

Market cap: $10.4 billion
2012 P/E estimate: 18.6x

2012 EPS estimate: $0.98

P/B ratio: 1.72x

Liberty Media is an American media conglomerate that recently made a bid for bankrupt bookseller Barnes & Noble (NYSE:BKS).

Data provided by JP Morgan

#18 Las Vegas Sands Corp. (NYSE:LVS)

#18 Las Vegas Sands Corp.

Market cap: $30.28 billion
2012 P/E estimate: 18.9x

2012 EPS estimate: $2.20

P/B ratio: 4.44x

Las Vegas Sands is a Nevada based casino company.

Data provided by JP Morgan

#17 Symantec Corp. (NASDAQ:SYMC)

#17 Symantec Corp.

Market cap: $14.77 billion
2012 P/E estimate: 10.9x

2012 EPS estimate: $1.79

P/B ratio: 3.27x

Symantec Corporation is the largest maker of security software for computers. Its products include Norton antivirus, Symantec Endpoint Protection and Veritas Storage Foundation among others.

Data provided by JP Morgan

#16 Apollo Group Inc. (NASDAQ:APOL)

#16 Apollo Group Inc.

Market cap: $5.8 billion
2012 P/E estimate: 13x

2012 EPS estimate: $3.17

P/B ratio: 4.43x

Apollo Group is an Arizona based company that through its subsidiaries owns for-profit educational institutions that include the University of Phoenix.

Data provided by JP Morgan

#15 Magna International Inc. (NASDAQ:LAVA)

#15 Magna International Inc.

Image: Magna International Inc.

Market cap: $11.73 billion
2012 P/E estimate: 8.7x

2012 EPS estimate: $5.58

P/B ratio: 1.38x

Magna International Inc. is a diversified automotive supplier. It manufactures auto parts for GM, Ford, Chrysler and owns Austrian Magna Steyr.

Data provided by JP Morgan

#14 Interpublic Group of Cos. (NYSE:IPG)

#14 Interpublic Group of Cos.

Image: Interpublic Group of Cos.

Market cap: $5.83 billion
2012 P/E estimate: 14.9x

2012 EPS estimate: $0.80

P/B ratio: 2.56x

Interpublic Group of Companies is a global advertising and marketing services company.

Data provided by JP Morgan

#13 Rockwell Collins Inc. (NYSE:ROK)

#13 Rockwell Collins Inc.

Market cap: $9.4 billion
2012 P/E estimate: 13.2x

2012 EPS estimate: $4.62

P/B ratio: 5.99x

Rockwell Collins Inc. is a U.S. based international company that offers aviation and IT systems and services to governments and aircraft manufacturers.

Data provided by JP Morgan

#12 Goldcorp Inc. (NYSE:GG)

#12 Goldcorp Inc.

Red Lake gold rush

Image: Goldcorp

Market cap: $40 billion
2012 P/E estimate: 18.1x

2012 EPS estimate: $2.76

P/B ratio: 2.02x

Goldcorp is a Vancouver based gold (NYSE:GLD) mining company with operations in Canada, Mexico, Central and South America and the U.S..

Data provided by JP Morgan

#11 Broadcom Corp. (NASDAQ:BRCM)

#11 Broadcom Corp.

Image: Broadcom

Market cap: $17.36 billion
2012 P/E estimate: 12x

2012 EPS estimate: $3.01

P/B ratio: 3.34x

Broadcom Corporation is a California based semiconductor company that operates in wired and wireless communications.

Data provided by JP Morgan

#10 Nucor Corp. (NYSE:NUE)

#10 Nucor Corp.

A steelworker burns impurities from a tube used to pour molten steel at Nucor Corp plant

Image: AP

Market cap: $13.38 billion
2012 P/E estimate: 10.9x

2012 EPS estimate: $3.88

P/B ratio: 1.85x

Nucor Corporation is a North Carolina based steel producer that operates in steel mills, steel products and raw materials.

Data provided by JP Morgan

#9 Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)

#9 Freeport-McMoRan Copper & Gold Inc.

Image: Freeport-Mcmoran Copper

Market cap: $48.9 billion
2012 P/E estimate: 8.2x

2012 EPS estimate: $6.27

P/B ratio: 3.54x

Freeport-McMoRan Copper & Gold Inc is a mining company that explores for copper, gold and molybdenum that is used as a pigment and catalyst.

Data provided by JP Morgan

#8 ArcelorMittal SA (NYSE:MT)

#8 ArcelorMittal SA

Image: AP

Market cap: $52.21 billion
2012 P/E estimate: 8x

2012 EPS estimate: $4.21

P/B ratio: 0.85x

ArcelorMittal is a Luxembourg based steel producing company and was formed in 2006 by the merger of Arcelor and Mittal Steel. In 2010, ArcelorMittal had steel shipments of approximately 85 million tons.

Data provided by JP Morgan

#7 General Motors Co. (NYSE:GM)

#7 General Motors Co.

Market cap: $49.65 billion
2012 P/E estimate: 6.4x

2012 EPS estimate: $4.94

P/B ratio: 1.79x

General Motors is a Detroit based multinational automotive corporation and sells vehicles through Buick, Cadillac, Chevrolet and Opel among others.

Data provided by JP Morgan

#6 Robert Half International Inc. (NYSE:RHI)

#6 Robert Half International Inc.

Harold M. Messmer, Jr., CEO

Image: Robert Half International Inc.

Market cap: $4.05 billion
2012 P/E estimate: 18.5x

2012 EPS estimate: $1.49

P/B ratio: $4.82x

Robert Half International is a California based staffing firm.

Data provided by JP Morgan

#5 Newmont Mining Corp. (NYSE:NEM)

#5 Newmont Mining Corp.

Image: Newmont Mining Corp

Market cap: $27.9 billion
2012 P/E estimate: 12.4x

2012 EPS estimate: $4.57

P/B ratio: 1.98x

Newmont Mining Corporation is one of the world’s largest producers of gold (NYSE:GLD), with active mines in Nevada, Indonesia, Australia, New Zealand, Ghana, and Peru.

Data provided by JP Morgan

#4 Kinross Gold Corp. (NYSE:KGC)

#4 Kinross Gold Corp.

Image: Kinross Gold Corp.

Market cap: $17.84 billion
2012 P/E estimate: 16.2x

2012 EPS estimate: $0.97

P/B ratio: 1.21x

Kinross Gold Corporation is a Canadian-based gold mining company with mines and projects in Canada, Brazil, the U.S., Chile, Ecuador, Russia, Ghana and Mauritania.

Data provided by JP Morgan

#3 United States Steel Corp. (NYSE:X)

#3 United States Steel Corp.

Image: United States Steel Corp.

Market cap: $6.62 billion
2012 P/E estimate: 8.5x

2012 EPS estimate: $5.45

P/B ratio: 1.7x

U.S. Steel is the world’s tenth largest steel producer by sales and has projects in the U.S., Canada and Central Europe.

Data provided by JP Morgan

#2 United Continental Holdings Inc. (NYSE:UAL)

#2 United Continental Holdings Inc.

Image: United Continental Holdings Inc.

Market cap: $8 billion
2012 P/E estimate: 4.6x

2012 EPS estimate: $5.28

P/B ratio: 4.17x

United Continental Holdings is an airline holding company that owns and operates United Air Lines and Continental Airlines.

Data provided by JP Morgan

#1 Delta Airlines Inc. (NYSE:DAL)

#1 Delta Airlines Inc.

Market cap: $8.53 billion
2012 P/E estimate: 5x

2012 EPS estimate: $2.01

P/B ratio: 11.24x

Delta Airlines is an Atlanta based commercial and cargo air transportation operator. The company operates up to 4,000 flights a day.

Data provided by JP Morgan

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