JP Morgan is bullish on the S&P 500. They expect the index to "melt up" to 1,495 within weeks.
In a new note to clients, chief U.S. equity strategist Tom Lee highlights 14 stock picks to outperform the index.
His recommendations are all domestically oriented companies. All of the companies have seen significant insider buying in the past six months, which is a show of confidence.
In addition, Lee's picks, which span a variety of industries, have exceeded the Wall Street's EPS estimates in the first two quarters of 2012.
"On average, these 14 names have 12% upside to J.P. Morgan target prices (for those that are covered) and a 2013E P/E of 11.3x," writes Lee.
Kroger Co
Ticker: KR
Target Price: $29.00
% Sales Int'l: 0%
1Q EPS Beat: 3%
2Q EPS Beat: 2%
Description: One of the world's largest grocery retailers, with sales of over $90 billion in FY2011.
Source: JP Morgan
Wells Fargo and Co.
Ticker: WFC
Target Price: $42.00
% Sales Int'l: 0%
1Q EPS Beat: 3%
2Q EPS Beat: 5%
Description: An estimated one in three American households does business with Wells Fargo.
Source: JP Morgan
CVS Caremark Corp.
Ticker: CVS
Target Price: $57.00
% Sales Int'l: 0%
1Q EPS Beat: 5%
2Q EPS Beat: 11%
Description: CVS has over 7,300 pharmacies across America and serves over 5 million people per day.
Source: JP Morgan
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