Stock picks to buy, 20 firms poised for massive gains for years: UBS

Premium

trader pointtrader point



Spencer Platt/Getty Images


This story is available exclusively on Business Insider Prime.
Join BI Prime and start reading now.

One of the most popular axioms on Wall Street is: The trend is your friend. 

In a recent report, UBS identified “Seven Megatrends of the Future” and ranked their impact on individual industries. 

“The Megatrends are multi-year themes that we expect to continue to widen the performance gap between the disrupters and the disrupted,” said a group of strategists at the firm. 

Here’s a closer look at the industries UBS thinks their seven megatrends benefit and suppress.

UBS



UBS


Today, the strategists are searching for stocks that still offer heaps of potential despite a less-than stellar industry outlook. And although some businesses are clearly more advantageously positioned, it doesn’t mean that stocks in a less favorable standing are lost causes.

“Many are solid businesses that can compound earnings even without the tailwinds of the Seven Megatrends behind them,” they said. “These are the stocks that often trade cheaper to fundamentals because investors’ focus on top-down analysis may mean they are ‘painted by the same broad brush’ as their weaker peers in a generally compromised sector.”

Listed below are 18 stocks that the strategists think look enticing despite headwinds. They’re listed in ascending order of potential upside to UBS’ price target.  

18. Morgan Stanley

MS



MS


Ticker: MS

Industry Group: Banks

Potential upside to price target: 9.5%

Source: Thomson Reuters, UBS

17. Keurig Dr Pepper Inc

KDP



KDP


Ticker: KDP

Industry Group: Beverages

Potential upside to price target: 9.9%

Source: Thomson Reuters, UBS

16. Ferrari NV

RACE



RACE


Ticker: RACE

Industry Group: Luxury

Potential upside to price target: 10.7%

Source: Thomson Reuters, UBS

15. Home Depot

HD



HD


Ticker: HD

Industry Group: General Retail

Potential upside to price target: 13.2%

Source: Thomson Reuters, UBS

14. Lojas Americanas

Screen Shot 2020 07 13 at 1.01.01 PM




Google



Ticker: LAME4

Industry Group: General Retail

Potential upside to price target: 16.5%

Source: Thomson Reuters, UBS

13. Choice Hotels

CHH



CHH


Ticker: CHH

Industry Group: Travel & Leisure

Potential upside to price target: 17.3%

Source: Thomson Reuters, UBS

12. TransDigm

TDG



TDG


Ticker: TDG

Industry Group: Aerospace

Potential upside to price target: 18.0%

Source: Thomson Reuters, UBS

11. DuPont de Nemours

DD



DD


Ticker: DD

Industry Group: Chemicals

Potential upside to price target: 19.4%

Source: Thomson Reuters, UBS

10. International Flavors & Frags

IFF



IFF


Ticker: IFF

Industry Group: Chemicals

Potential upside to price target: 22.8%

Source: Thomson Reuters, UBS

9. Bradesco

BBD



BBD


Ticker: BBD

Industry Group: Banks

Potential upside to price target: 29.0%

Source: Thomson Reuters, UBS

8. Nike

NKE



NKE


Ticker: NKE

Industry Group: General Retail

Potential upside to price target: 30.8%

Source: Thomson Reuters, UBS

7. Grupo Aeroportuario del Pacífico

GAPB



GAPB


Ticker: GAPB

Industry Group: Airlines/Airports

Potential upside to price target: 31.6%

Source: Thomson Reuters, UBS

6. Williams Companies

WMB



WMB


Ticker: WMB

Industry Group: Oil & Gas

Potential upside to price target: 32.2%

Source: Thomson Reuters, UBS

5. Raytheon Technologies

RTX



RTX


Ticker: RTX

Industry Group: Aerospace

Potential upside to price target: 32.8%

Source: Thomson Reuters, UBS

4. Citigroup

C



C


Ticker: C

Industry Group: Banks 

Potential upside to price target: 33.1%

Source: Thomson Reuters, UBS

3. ConocoPhillips

COP



COP


Ticker: COP

Industry Group: Oil & Gas

Potential upside to price target: 52.6%

Source: Thomson Reuters, UBS

2. Credicorp

BAP



BAP


Ticker: BAP

Industry Group: Banks

Potential upside to price target: 59.1%

Source: Thomson Reuters, UBS

1. Copa

CPA



CPA


Ticker: CPA

Industry Group: Airlines/Airports

Potential upside to price target: 75.7%

Source: Thomson Reuters, UBS

LoadingSomething is loading.

More:

Features
Investing
BI Prime
UBS

Chevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.

Read More

By |2020-07-13T17:26:42+00:00July 13th, 2020|Business|0 Comments

Customer Reviews

5
0%
4
0%
3
0%
2
0%
1
0%
0
0%
    Showing 0 reviews

Leave a Reply

Your email address will not be published. Required fields are marked *

Thanks for submitting your comment!
Go to Top