UBS’s ‘quantitative’ framework picks Fortinet, Meta, Docusign, Monday.com, Uber, Cardinal Health and Entesa as top-ranked stocks
According to a report published today by Zurich-based UBS, US growth companies are killing it. Titled ‘Theme Meter’, the report includes a list of the 20 highest-ranked and 20 lowest-ranked companies, based on the bank’s proprietary “quantitative stock selection framework”, divides company performance into four categories: macroeconomic regime (R), operating environment for earnings (E), market assessment of valuation (V) and sentiment (S) .
That’s the abbreviation REVS.
Six of the seven highest-ranked companies on the UBS list are from the United States. They include Fortineta 24-year-old cybersecurity company that has seen explosive growth since Covid caused the number of people working from home to skyrocket. Its stock price has increased 34.25% in the past year alone, to $79.89 today. Only Madrid-based Endesa, a UBS-listed EU-listed Eurozone power company, ranked higher than the other six US companies.
It should be noted that, like most banking research, UBS “conducts and seeks to do business with the companies featured in its research reports,” so as always, caution is needed. important to some extent when interpreting the results.
Lead author and UBS US strategist Sean Simonds and the rest of his team wrote: “The US Growth theme is among the highest ranked themes in the REVS framework. we”. Other US growth leaders are Meta, Docusign, Monday.com, Uber And Cardinal health.
Follow Simonds in an email Luck.
Sunnyvale, California-based Fortinet scored 0.63 out of a perfect score. Endesa, a Madrid-based utility company, ranked second with a score of 0.61.
Founded by brothers Ken and Michael At home, stocks started the year mostly volatile. stopped growing, reaching $69 in December 2021.
In August, Fortinet buy artificial intelligence cloud security company Lacework for an undisclosed amount and is currently valued at $61.4 billion.
Other themes ranked highly by UBS are EU-listed Eurozone Exposure, GLP-1 Winners (industry tracking around Glucagon-like peptides in Ozempic) and EU Renewable Energy. The worst performing themes include European Value stocks such as BPListed in China, including L’Oreal, and US Low-Income Consumers, incl Monster beverageAutozone, and common dollarsAccording to the report, all were “among the lowest-scoring stocks across these themes.”
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https://www.darkreading.com/cloud-security/fortinet-customer-data-breach-third-party
