Deutsche Bank's U.S. Equity Strategy team led by David Bianco are concerned about stock market volatility in the near-term as interest rates rise.
"The S&P should stay above 1525 given tentative signs of 10yr yields stabilizing around 2.5% and unshaken oil prices and Euro," wrote Bianco. "A further near-term jump in yields could spark fears of a surge and dislocate credit, FX, and commodity markets, but this is not likely."
However, he continues to be bullish on the long-run. He sees the S&P 500 at 2,000 by the end of 2015.
With this framework in mind, Bianco and his team offer 33 buy-rated stocks on his latest "What To Buy Now" list.
Each have a market capitalization over $10 billion, a price-earning ratio on 2013 EPS below 20, 2013 EPS growth above 5 percent, and a net debt to market cap ratio below 30 percent (excluding Financials).
CBS
Ticker: CBS
Target Price: $55
Net Debt/Mkt Cap: +18%
'13 EPS Growth: +20%
America's number 1-ranked network has enjoyed a major recovery since its 2009 lows, and recently overtook Yahoo! at #130 in the S&P 500 ordered by market capitalization.
Source: Deutsche Bank
Viacom
Ticker: VIAB
Target Price: $70
Net Debt/Mkt Cap: +26%
'13 EPS Growth: +14%
Viacom recently penned a deal with Amazon worth hundreds of millions of dollars, allowing the internet company to stream Viacom shows.
Source: Deutsche Bank
Ralph Lauren
Ticker: RL
Target Price: $190
Net Debt/Mkt Cap: -7%
'13 EPS Growth: +7%
Ralph Lauren have been on a tear this year, and shareholders are scheduled for a dividend of $0.40 per share on July 12th.
Source: Deutsche Bank
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