RBC Capital: Top 5 Global Stock Ideas For 2H18

It’s not too late to jump into these success stories.

RBC Capital is now out with its top stock list, updated for the second half of the year. As you can see here we take a closer look at the stocks that have outperformed year-to-date. This is a promising sign that these stocks are on an upward trajectory- but still with further growth potential ahead.

Let’s take a closer look at these top stocks now:

Aptiv Plc (NYSE: APTV)

Irish-based Aptiv is the top stock idea from RBC Capital’s Joseph Spak. Aptiv is a is a global technology company that develops safer, greener and more connected solutions. The company has an ambitious goal: it wants to enable the future of mobility. So far, year-to-date Aptiv is up 8.5%.

According to Spak “Our Outperform rating is based on our view that Aptiv’s outperformance versus global industry production will continue over the coming years. This is driven by the company’s product portfolio, which is well aligned with three important secular themes in auto: safe, green, and connected.” Plus Aptiv’s strong top-line growth should allow for further margin expansion. He has a $115 price target on the stock (26.5% upside potential).

One other bullish catalyst to bear in mind is the company’s strong cash generation. He believes this should allow the company to do M&A be more aggressive in returning cash to shareholders via share repurchases and dividends.

This ‘Strong Buy’ stock has an impressive Street score- 7 buy ratings in the last three months. No hold or sell ratings here. This is with a $113 price target (24% upside potential).

Raytheon (NYSERTN)

Defense giant Raytheon is the world’s largest producer of guided missiles. “We view Raytheon as among the most favorably positioned defense companies based on its leading market positions in missile defense systems and missiles, which are seeing intense investment that we expect to continue for the foreseeable future.”

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