ROE Generators: 3 Wall Street Loves, 1 It Hates

By Takeover Analyst:We look at a list of consumer services companies with 10% or more upside. They cover diverse industries: food retailing, broadcasting, and home improvement. Two of the companies, Safeway (SWY) and Cablevision (CVC), are rated weak at a "hold", which is pessimistic by Street standards.

By Takeover Analyst:What follows is a list of transportation companies that are rated a "buy" or better on the Street. They cover a variety of industries: mail delivery, airlines, and railroads.

By Takeover Analyst:What follows is a list of service companies that are rated favorably on the Street. They cover a variety of specific industries: business support, mobile telecom, and media agency. Vodafone (VOD) is preferred due to its attractive multiple multiples and top-line momentum. The company is trading at 82% of the PE multiple of peers and offers a strong dividend yield to hedge against macro volatility.

By Takeover Analyst:What follows is a list of companies that offer strong dividend yields to hedge against an uncertain economy. Telecom traditionally distributes earnings through this form of capital allocation, so it should be no surprise that one telecom company is included in this list. The other two companies are engaged in consumer goods and mining. My preferred pick is Vale due to strong secular trends from fears over inflation.

By Takeover Analyst:What follows is a list of basic materials companies that have, by my calculations, significant upside. They cover a variety of industries: chemicals, mining and steel. All of the firms, save Dow Chemical (DOW), are rated a "buy" or better. This is largely due to industry volatility and fourth quarter weakness. All ratings are sourced from T1 Banker. Dow Chemical

By Takeover Analyst:We look at three firms operating in the consumer goods sector. They cover a range of industries: specialty retailing, food products, and agricultural processors. Staples (SPLS), the only company not related to the food sector, is preferred on the Street with a "buy" rating. Based on my review of the fundamentals and multiples analysis, I similarly find the most attractive risk/reward for Staples.

By Takeover Analyst:I take a closer look at three healthcare companies that are rated a "buy" or better on the Street (ratings source: T1 Banker). I compare two medical equipment companies to one pharmaceutical company in order to showcase my belief that the latter offers better risk/reward.

By Takeover Analyst:What follows is a list of oil and gas companies that are specialized in different industries: Exploration and production, oil equipment, and integrated oil and gas. Of the three, the Street is most bullish about Schlumberger (SLB) - rating it a "strong buy" - due to its impressive momentum and increasing scale. Based on my review of the fundamentals and multiples analysis, I share this preference.