Credit Suisse's 17 Most-Loved U.S. Stocks for Investors to Buy Now

Credit Suisse (CS - Get Report) made changes to its "Global Focus List" on Monday including adding McDonald's (MCD - Get Report) and Beijing Enterprise Water to the list while deleting Dunkin' Brands (DNKN- Get Report) and ITV Plc.

Credit Suisse's list of 39 stocks is a compilation of "best ideas across all regions that should better target global investor portfolios," the investment bank said in the report. While the stocks collectively under-performed the MSCI World index by -1.7% during in the third quarter, the Credit Suisse's Global Focus List has outperformed the broader index by 2.5% in 2015.

During the third quarter, stocks that stood out with positive performance - despite market volatility - included Southwest Airlines (LUV - Get Report) , having gained 15% for the quarter ended Sept. 30. Other global outperformers included Canada's Loblaw Cos. and Mexico's FEMSA (FMX) . Underperforming stocks on Credit Suisse's global list includedMarathon Oil Corp. (MRO) and Devon Energy (DVN) , which has lost 37%.

Here are the 17 U.S.-based companies on Credit Suisse's "Global Focus List." The stocks are paired with ratings from TheStreet Ratings for added perspective.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows -- and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

 AMG data by YCharts 

1. Affiliated Managers Group Inc. (AMG) Industry: Financial Services/Asset Management & Custody Banks 
Year-to-date return: -16.7%

Credit Suisse Rating/Price Target: Outperform/$253
Credit Suisse Said: We continue to look for 3-5 deals over the next 12 months. AMG announced a new Wealth affiliate in 2Q (bringing Wealth AuM to ~35B), and its deal pipeline remains robust, skewed towards Alternative Managers (currently ~35% of earnings). Additionally, we expect buybacks to provide support in the event of slower deal execution. Sell side estimates currently embed zero deals, limited buybacks.

Diverse Manager Base coupled with resilient institutional flows have offset weakness in the retail channel (U.S. driven). Despite weaker industry flows, AMG posted OG of 2.6% (ann.) in 2Q vs. peer average of 0%.

TheStreet Said: TheStreet Ratings team rates AFFILIATED MANAGERS GRP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate AFFILIATED MANAGERS GRP (AMG) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• AMG's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 1.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Capital Markets industry and the overall market, AFFILIATED MANAGERS GRP's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
• AFFILIATED MANAGERS GRP has improved earnings per share by 32.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AFFILIATED MANAGERS GRP increased its bottom line by earning $7.99 versus $6.49 in the prior year. This year, the market expects an improvement in earnings ($12.77 versus $7.99).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 30.0% when compared to the same quarter one year prior, rising from $99.00 million to $128.70 million.
• Net operating cash flow has slightly increased to $351.40 million or 7.06% when compared to the same quarter last year. Despite an increase in cash flow of 7.06%, AFFILIATED MANAGERS GRP is still growing at a significantly lower rate than the industry average of 107.32%.
• You can view the full analysis from the report here: AMG

 ADSK data by YCharts 
2. Autodesk (ADSK) 

Industry: Technology/Application Software 
Year-to-date return: -13.4%

Credit Suisse Rating/Price Target: Outperform/$80
Credit Suisse Said: We believe that there are several significant drivers to Autodesk's financial performance, including: (1) increasing revenue per user due to the forced migration to subscription offerings; (2) monetizing new cloud-based add-on services and standalone software; (3) expanding the company's user base via rental license offerings; and (4) eventually raising maintenance pricing to converge with the higher-priced Basic Subscription model. In our view, these will result in meaningful long-term upside to revenue (at limited incremental cost) versus the market's current expectations as implied by Autodesk's current share price.

TheStreet Said: TheStreet Ratings team rates AUTODESK as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

We rate AUTODESK (ADSK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• ADSK's debt-to-equity ratio of 0.78 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that ADSK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.12 is high and demonstrates strong liquidity.
• The gross profit margin for AUTO DESK is currently very high, coming in at 89.34%. Regardless of ADSK's high profit margin, it has managed to decrease from the same period last year.
• Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 4.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 852.4% when compared to the same quarter one year ago, falling from $31.30 million to -$235.50 million.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, AUTODESK's return on equity significantly trails that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: ADSK

 BXP data by YCharts 

3. Boston Properties (BXP) Industry: Financial Services/Office REITs
Year-to-date return: -4.7%

Credit Suisse Rating/Price Target: Outperform/$149
Credit Suisse Said: BXP trades at a 16% discount to NAV compared with a 9% discount for peers. Management is taking the appropriate steps to correct the mispricing by selling assets ($750m in 2015), refinancing debt maturities, and continuing to execute on its fully-funded development pipeline.

We believe the discount is unwarranted as the company's portfolio quality is unrivaled, its management team has consistently proven its ability to successfully allocate capital, and the company's $2 billion development pipeline is undervalued.

TheStreet Said: TheStreet Ratings team rates BOSTON PROPERTIES INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate BOSTON PROPERTIES (BXP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
• Net operating cash flow has increased to $241.63 million or 30.76% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.24%.
• 37.23% is the gross profit margin for BOSTON PROPERTIES which we consider to be strong. Regardless of BXP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BXP's net profit margin of 13.18% is significantly lower than the industry average.
• The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Real Estate Investment Trusts (REITs) industry average, but is greater than that of the S&P 500. The net income increased by 3.5% when compared to the same quarter one year prior, going from $79.30 million to $82.08 million.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, BOSTON PROPERTIES's return on equity is below that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: BXP

 DVN data by YCharts 

4. Devon Energy (DVN) Industry: Energy/Oil & Gas Exploration & Production
Year-to-date return: -24.1%

Credit Suisse Rating/Price Target: Outperform/$62
Credit Suisse Said: Within the context of a cautious near-term outlook for E&Ps given oil price risk through 1H15, we believe DVN is well positioned to outperform given its defensive valuation, top quartile oil growth profile, and further accretion potential from EnLink. In a difficult energy tape, we believe the combination of 20-25% oil growth, a discounted valuation, and the potential for additional drop downs to EnLink will drive outperformance.

Based on our benchmarking study, DVN is drilling among the prolific wells in the Eagle Ford (EF). Analysis of recent EF data suggests that enhancements in completion are driving even better wells, increasing average IP rates. Given rising completion activity and the step change in well results, we see upside to our '15 production estimate of 97 MBoe/d in the Eagle Ford versus the Q314 average of 78 MBoe/d.

TheStreet Said: TheStreet Ratings team rates DEVON ENERGY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

We rate DEVON ENERGY (DVN) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 517.2% when compared to the same quarter one year ago, falling from $675.00 million to -$2,816.00 million.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, DEVON ENERGY's return on equity significantly trails that of both the industry average and the S&P 500.
• Net operating cash flow has decreased to $1,101.00 million or 46.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
• The share price of DEVON ENERGY has not done very well: it is down 17.18% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
• DEVON ENERGY has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DEVON ENERGY turned its bottom line around by earning $3.89 versus -$0.10 in the prior year. For the next year, the market is expecting a contraction of 44.7% in earnings ($2.15 versus $3.89).
• You can view the full analysis from the report here: DVN

 FB data by YCharts

5. Facebook (FB) Industry: Technology/Internet Software & Services 
Year-to-date return: 25%

Credit Suisse Rating/Price Target: Outperform/$115
Credit Suisse Said: Within the context of a cautious near-term outlook for E&Ps given oil price risk through 1H15, we believe DVN is well positioned to outperform given its defensive valuation, top quartile oil growth profile, and further accretion potential from EnLink. In a difficult energy tape, we believe the combination of 20-25% oil growth, a discounted valuation, and the potential for additional drop downs to EnLink will drive outperformance.

Based on our benchmarking study, DVN is drilling among the prolific wells in the Eagle Ford (EF). Analysis of recent EF data suggests that enhancements in completion are driving even better wells, increasing average IP rates. Given rising completion activity and the step change in well results, we see upside to our '15 production estimate of 97 MBoe/d in the Eagle Ford versus the Q314 average of 78 MBoe/d.

TheStreet Said: TheStreet Ratings team rates FACE BOOK as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate FACEBOOK (FB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth greatly exceeded the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 38.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• FB's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 8.47, which clearly demonstrates the ability to cover short-term cash needs.
• Net operating cash flow has increased to $1,880.00 million or 40.19% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 19.40%.
• The gross profit margin for FACEBOOK is currently very high, coming in at 94.81%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.78% trails the industry average.
• Compared to its closing price of one year ago, FB's share price has jumped by 31.07%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
• You can view the full analysis from the report here: FB

 GE data by YCharts 

6. General Electric (GE) Industry: Industrials/Industrial Conglomerates
Year-to-date return: 14.7%

Credit Suisse Rating/Price Target: Outperform/$31
Credit Suisse Said: We see a number of company-specific catalysts to drive GE price performance in 2016. 1) Divestments of GECC assets should speed up by year end. The sooner GE can be de-designated as a SIFI, the sooner large share buy-backs can start (likely 2H16). 2) The approval of the Alstom acquisition should allow GE to pursue other Industrial acquisitions, which have effectively been on-hold since April 2014. This should help push up the overall GE valuation multiple. 3) GE still has momentum behind its GM expansion effort, where most other industrials are likely at peak margins. In addition, GE's 4% dividend yield should provide support to the stock price.

TheStreet Said: TheStreet Ratings team rates GENERAL ELECTRIC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate GENERAL ELECTRIC (GE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• GE's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
• Net operating cash flow has increased to $6,299.00 million or 20.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.04%.
• 40.46% is the gross profit margin for GENERAL ELECTRIC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.25% trails the industry average.
• Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
• GENERAL ELECTRIC's earnings per share declined by 14.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, GENERAL ELECTRIC reported lower earnings of $1.37 versus $1.47 in the prior year. For the next year, the market is expecting a contraction of 5.1% in earnings ($1.30 versus $1.37).
• You can view the full analysis from the report here: GE

 HBI data by YCharts 

7. Hanesbrands (HBI) Industry: Consumer Goods & Services/Apparel, Accessories & Luxury Goods
Year-to-date return: 3.2%

Credit Suisse Rating/Price Target: Outperform/$38
Credit Suisse Said: Strong and steady free cash flow generator with opportunity to catalyze EPS growth via acquisitions and mix shift towards premium priced products.

Hanesbrands continues to have one of the most robust earnings growth models in our universe driven by: (1) share capture in core innerwear and activewear businesses; (2) margin expansion with shift to premium product and leverage of fixed assets; (3) accretion from a healthy pipeline of acquisitions; and 4) excess cash generation.

TheStreet Said: TheStreet Ratings team rates HANESBRANDS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate HANESBRANDS (HBI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows: