20 Stocks That Matter The Most To Financial Advisors

#4 General Electric Company (NYSE:GE)

General Electric Company (NYSE:GE) shares have been hot, having rallied 24% year-to-date. The company has been shrinking its financial operations to get back to its industrial and technological roots. Management has been selling off parts of GE Capital piecemeal and plans to trim around $200 billion of financial assets from its balance sheet in two years. Nelson Peltz‘s Trian Partners, which took a $2.5 billion stake in General Electric Company (NYSE:GE), believes management’s strategy is the correct one, and estimates the strategy will boost GE earnings per share to $2.20 by 2018. Peltz believes General Electric stock could be $40-45 per share including dividends by the end of 2017 if management controls costs. Shares trade for a reasonable 20.18 times forward earnings.

#3 Colgate-Palmolive Company (NYSE:CL)

Colgate-Palmolive Company (NYSE:CL) reported third quarter earnings of $0.72 per share on revenues of $4 billion, meeting EPS expectations but missing revenue estimates by $70 million. Despite the mixed earnings, investors breathed a sign of relief as the company’s organic sales remained healthy, rising 5% year-over-year in Q3. Although shares are down 1.8% year-to-date and trade at 22 times forward earnings, Colgate-Palmolive Company (NYSE:CL) shares are attractive for the long term investor given the company’s substantial emerging markets exposure.

#2 Gilead Sciences, Inc. (NASDAQ:GILD)

Gilead Sciences, Inc. (NASDAQ:GILD)’s Sovaldi and Harvoni are some of the best selling drugs on the market, and will provide the company with substantial cash flow to buy back shares or pay higher dividends. Gilead Sciences, Inc. (NASDAQ:GILD)’ shares trade at a discount valuation of just 8.86 times forward earnings and are up 14.58% year-to-date. Analysts have a consensus price target of $124.67 per share, giving the stock 18% upside.

#1 Apple Inc. (NASDAQ:AAPL)

The market doesn’t like one-product companies because the profit from a single product is not as sustainable as the profit from a broad portfolio of products. While there is no question that the majority of Apple Inc. (NASDAQ:AAPL)’s profits come from the iPhone, the data shows that iPhone profits are sustainable. Apple’s EPS has been steadily growing since Steve Jobs launched the iPhone in 2007. Chinese iPhones sales are rising despite the slowing economy. Apple Inc. (NASDAQ:AAPL)’s strong ecosystem and luxury brand keep customers coming back each time. The smartphone may be more or less commoditized, but Apple’s profits haven’t. Meanwhile, virtual reality, smart cars, and artificial intelligence will offer more growth and diversification opportunities in the future. Carl Icahn‘s Icahn Capital LP, who thinks Apple should trade for $240 per share, owned 52.76 million shares at the end of June.

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