JP Morgan's Top Stock Picks for 2nd-Half of 2013 (FB) (AAPL) (RYL) (more...)

This week, JP Morgan equity research released their second half 2013 outlook and stocks they expect to outperform. The firm remains constructive on equities and has a positive upside bias to their year end 2013 S&P 500 target of 1715, based on a 14.7x multiple on '14E EPS of $117.

The firm's constructive view is based on a number of factors, including their view that while fundamentals will improve, the improvement will be slow enough to keep QE in place. Also they see pent up demand providing upside to U.S. growth. Valuations are supportive of a re-rating of stocks, they also said. The firm sees higher interest rates favoring cyclical stocks over defensive names.

JPMorgan's Top LONG Stock Ideas (upside to price target):

AMR (OTC: AAMRQ) - 134% upside
Silver Wheaton (NYSE: SLW) - 82% upside
Consol Energy (NYSE: CNX) - 68% upside
Navistar International (NYSE: NAV) - 67% upside
Continental Resources (NYSE: CLR) - 45% upside
Facebook (NASDAQ: FB) - 43% upside
Ryland Group (NYSE: RYL) - 43% upside
USG Corp. (NYSE: USG) - 41% upside
GasLog Ltd. (NASDAQ: GLOG) - 40% upside
ONEOK (NYSE: OKE) - 37% upside
Alexion Pharmaceuticals (NASDAQ: ALXN) - 36% upside
Broadcom (NASDAQ: BRCM) - 35% upside
Symantec (NASDAQ: SYMC) - 35% upside
Boeing (NYSE: BA) - 33% upside
Apple (NASDAQ: AAPL) - 32% upside
Reynolds American (NYSE: RAI) - 29% upside
Canadian Pacific Rail (NYSE: CP) - 29% upside
Onyx Pharmaceuticals (NASDAQ: ONXX) - 28% upside
Wright Medical Group (NASDAQ: WMGI) - 27% upside
Las Vegas Sands (NYSE: LVS) - 26% upside
National Oilwell Varco (NYSE: NOV) - 25% upside
Actavis (NYSE: ACT) - 23% upside
Robert Half (NYSE: RHI) - 23% upside
Visteon (NYSE: VC) - 22% upside
Michael Kors (NASDAQ: KORS) - 22% upside
American Public Education (NASDAQ: APEI) - 22% upside
Mondelez International (NASDAQ: MDLZ) - 21% upside
Occidental Petroleum (NYSE: OXY) - 20% upside
Tesoro (NYSE: TSO) - 20% upside
TAL International (NYSE: TAL) - 20% upside
Walt Disney (NYSE: DIS) - 20% upside
Duke Energy (NYSE: DUK) - 19% upside
INVESCO (NYSE: IVZ) - 19% upside
MeadWestvaco (NYSE: MWV) - 18% upside
Verint Systems (NASDAQ: VRNT) - 18% upside
DineEquity (NYSE: DIN) - 17% upside
Kilroy Realty (NYSE: KRC) - 16% upside
Praxair Inc (NYSE: PX) - 15% upside
Starwood Hotels (NYSE: HOT) - 15% upside
NCR Corp. (NYSE: NCR) - 15% upside
Universal Health Services (NYSE: UHS) - 12% upside
GNC Holdings (NYSE: GNC) - 11% upside
Dollar Tree (NASDAQ: DLTR) - 11% upside
Ciena (NASDAQ: CIEN) - 11% upside
First Republic (NYSE: FRC) - 11% upside
Express Scripts (NASDAQ: ESRX) - 10% upside
UnitedHealth Group (NYSE: UNH) - 10% upside
PepsiCo (NYSE: PEP) - 7% upside
Heartland Payment Systems (NYSE: HPY) - 7% upside
Bank of America (NYSE: BAC) - 6% upside
Nu Skin Enterprises (NYSE: NUS) - 5% upside
Xilinx (NASDAQ: XLNX) - 5% upside
Dealertrack Technologies (NASDAQ: TRAK) - 5% upside
Starbucks (NASDAQ: SBUX) - 0% upside
Prudential Financial (NYSE: PRU) - 4% downside
T-Mobile US Inc. (NASDAQ: TMUS) - 4% downside
Illumina (NASDAQ: ILMN) - 10% downside

JPMorgan's Top Short Ideas (downside to price target):
Allegheny Technologies (NYSE: ATI) - 31% downside
SPX Corp (NYSE: SPW) - 9% downside

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