A sell side analyst produces detailed research that is circulated to broker clients for investment considerations. When research is distributed from a reliable analyst it can prove influential in changing investors' perceptions and driving share prices.
Researches often cover a specific industry or sub-sector in order become experts in their field. Their advanced knowledge helps them to utilizes complex forecast models and ultimately deliver recommendations on stocks or other securities.
The recommendations are typically phrased as "buy," "sell," or "hold."
Business section: Investing ideas
Interested in tracking the recommendations of top Wall Street analysts?
To help you get started, we did a screen on all the stocks that UBS ranked as a "buy" over the last 12 months. To refine the list, we collected data on levered free cash flows, and identified the names that are most undervalued relative to enterprise value.
UBS analysts are optimistic on the prospect of these undervalued stocks -- do you agree with their bullish sentiment?
List sorted alphabetically. (Click here to access free, interactive tools to analyze these ideas.)
1. Agilent Technologies
2. Accenture: Operates as a management consulting, technology services, and outsourcing company. On 05/16/2011, UBS had a Buy rating on the stock. Levered free cash flow at $3.42B vs. enterprise value at $29.12B (implies a LFCF/EV ratio at 11.74%).
4. Cliffs Natural Resources
5. Cisco Systems
6. Dana Holding: Engages in the design, manufacture, and supply of products for vehicle manufacturers worldwide. On 11/22/2011, UBS had a Buy rating on the stock. Levered free cash flow at $206.62M vs. enterprise value at $1.75B (implies a LFCF/EV ratio at 11.81%).
8. Ingersoll-Rand: Engages in the design, manufacture, sale, and service of a portfolio of industrial and commercial products in the United States and internationally. On 09/06/2011, UBS had a Buy rating on the stock. Levered free cash flow at $1.19B vs. enterprise value at $11.69B (implies a LFCF/EV ratio at 10.18%).
9. Monster Worldwide: Provides online employment solutions worldwide. On 06/17/2011, UBS had a Buy rating on the stock. Levered free cash flow at $92.01M vs. enterprise value at $847.49M (implies a LFCF/EV ratio at 10.86%).
10. Shaw Group: Provides technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services to multinational and national oil companies, industrial corporations, regulated utilities, independent and merchant power producers, and government agencies worldwide. On 02/08/2011, UBS had a Buy rating on the stock. Levered free cash flow at $195.02M vs. enterprise value at $1.51B (implies a LFCF/EV ratio at 12.92%).
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
List compiled by Eben Esterhuizen, CFA. Kapitall's Eben Esterhuizen and Rebecca Lipman do not own any of the shares mentioned above. Analyst data sourced from Yahoo! Finance.