Wells Fargo’s ‘Core’ List: GOOGL, DIS, HD, WMT, and more!
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Sean Anthony Eddy
Wells Fargo analysts updated their “Core” list, “a favored list of industry-leading companies appropriate for long-term investment.”
These are blue chip, industry-leading, and high-quality stocks that could be used to build a well-diversified portfolio or to supplement an existing one, according to John Sheehan, equity sector analyst at Wells Fargo.
To put the list together, analysts focus on companies that have at least a mid-cap market cap and a substantial revenue base. Analysts also consider long-term revenue, earnings, common dividend growth rates, and projected future growth. In addition, they look at management’s level of experience, return on invested capital, stability of revenues and earnings, stock price volatility, balance sheet strength, debt rating, and other various valuation measures, Sheehan said.
Here is the Core list:
Within communication services
- Alphabet (GOOGL) – Consensus long-term EPS growth estimate: 12%
- Comcast (CMCSA) – Consensus long-term EPS growth estimate: 5%
- The Walt Disney (DIS) – Consensus long-term EPS growth estimate: 16%
- Omnicom Group (OMC) – Consensus long-term EPS growth estimate: 7%
Within consumer discretionary
- The Home Depot (HD) – Consensus long-term EPS growth estimate: 3%
- Lowe’s Companies (LOW) – Consensus long-term EPS growth estimate: 3%
- NIKE (NKE) – Consensus long-term EPS growth estimate: 2%
- Starbucks (SBUX) – Consensus long-term EPS growth estimate: 10%
- The TJX Companies (TJX) – Consensus long-term EPS growth estimate: 9%
Within consumer staples
- The Coca-Cola Co. (KO) – Consensus long-term EPS growth estimate: 6%
- Colgate-Palmolive Co. (CL) – Consensus long-term EPS growth estimate: 9%
- PepsiCo (PEP) – Consensus long-term EPS growth estimate: 6%
- Procter & Gamble (PG) – Consensus long-term EPS growth estimate: 7%
- Sysco (SYY) – Consensus long-term EPS growth estimate: 8%
- Walmart (WMT) – Consensus long-term EPS growth estimate: 10%
Within energy
- Chevron (CVX) – Consensus long-term EPS growth estimate: 5%
- Kinder Morgan (KMI) – Consensus long-term EPS growth estimate: 4%
Within financials
- Aflac (AFL) – Consensus long-term EPS growth estimate: 9%
- Blackrock (BLK) – Consensus long-term EPS growth estimate: 14%
- Chubb (CB) – Consensus long-term EPS growth estimate: 2%
- JPMorgan Chase & Co. (JPM) – Consensus long-term EPS growth estimate: 3%
- Mastercard (MA) – Consensus long-term EPS growth estimate: 15%
Within health care
- Abbott Laboratories (ABT) – Consensus long-term EPS growth estimate: 7%
- Becton, Dickinson & Co. (BDX) – Consensus long-term EPS growth estimate: 9%
- Danaher (DHR) – Consensus long-term EPS growth estimate: 2%
- Johnson & Johnson (JNJ) – Consensus long-term EPS growth estimate: 4%
- Medtronic (MDT) – Consensus long-term EPS growth estimate: 6%
- Merck & Co. (MRK) – Consensus long-term EPS growth estimate: 52%
- Novartis AG (NVS) – Consensus long-term EPS growth estimate: 8%
- Stryker (SYK) – Consensus long-term EPS growth estimate: 8%
- UnitedHealth Group (UNH) – Consensus long-term EPS growth estimate: 12%
Within industrials
- Automatic Data Processing (ADP) – Consensus long-term EPS growth estimate: 9%
- Emerson Electric (EMR) – Consensus long-term EPS growth estimate: 12%
- Illinois Tool Works (ITW) – Consensus long-term EPS growth estimate: 6%
- Landstar Systems (LSTR) – Consensus long-term EPS growth estimate: –
- Paychex (PAYX) – Consensus long-term EPS growth estimate: 7%
- Parker-Hannifin (PH) – Consensus long-term EPS growth estimate: 13%
- RTX Corp. (RTX) – Consensus long-term EPS growth estimate: 11%
Within information technology
- Accenture (ACN) – Consensus long-term EPS growth estimate: 9%
- Apple (AAPL) – Consensus long-term EPS growth estimate: 10%
- Broadcom (AVGO) – Consensus long-term EPS growth estimate: 16%
- Cisco Systems (CSCO) – Consensus long-term EPS growth estimate: 4%
- Microsoft (MSFT) – Consensus long-term EPS growth estimate: 13%
- Oracle (ORCL) – Consensus long-term EPS growth estimate: 14%
- Salesforce (CRM) – Consensus long-term EPS growth estimate: 18%
- Synopsys (SNPS) – Consensus long-term EPS growth estimate: 14%
- Texas Instruments Inc. (TXN) – Consensus long-term EPS growth estimate: 0%
Within materials
- Linde Plc (LIN) – Consensus long-term EPS growth estimate: 9%
Within REITs
- Public Storage (PSA) – Consensus long-term EPS growth estimate: 2%
Within utilities