Best stocks to buy now according to Deutsche Bank
Deutsche Bank financial analysts have selected their top 12-month investment ideas. More than a dozen U.S. equities have been flagged by Tarsus as a stock with strong conviction.
The stocks are part of the bank’s latest “DB Fresh Money List,” a quarterly report in which its U.S. analysts identify their top investments for the coming year. According to the bank’s report, the list’s rolling 12-month performance is up more than 48 percent, compared to the S&P 500’s 36 percent rise.
Here are some of its new stock picks for the coming year:
Dell is one of the new technology stocks added to Deutsche Bank’s list. According to the bank, it is trading at a “multi-turn discount” to peers after adjusting for its ownership of cloud computing arm VMware, which is set to be spun off. As people return to work after working from home during the pandemic, demand for the company’s desktop computers has increased, and this “bodes well” for the rest of the year, according to the analysts.
Palo Alto Networks, a cybersecurity firm, is also a pick for the bank, which describes it as a “best-in-class security firm with a cash-cow firewall business that will prove stickier than many expect, and healthy momentum in its Next-Gen products.”
According to Deutsche Bank, medical technology company Stryker is “well-positioned for sustainable growth” above its weighted average market growth rate (WAMGR), thanks to “smart organic investments” and “significant but disciplined business development activity.” In addition, the bank anticipates that its orthopedic and spine businesses will gain market share.
Mondelez has been added to Deutsche Bank’s list, and the bank anticipates “sustained outperformance” due to its global brands and “local jewels.” It also likes the company’s “compelling” current valuation and “credible upside” for earnings in the coming year.
People are eager to invest in vacation timeshares, according to Covid-
According to Deutsche Bank, 19 restrictions are being lifted, which will benefit Marriott Vacations Worldwide. According to the analysts, the “historically robust American consumer” is ready to travel, and the “wealth effect” created since the pandemic began is set to grow the market for shared-ownership vacation homes.
Under Armour is in the midst of a turnaround and was chosen by the bank, which stated that it will benefit from “multiple years of resetting the cost base” and expects its North America segment to return to growth. In the long run, Deutsche Bank expects its earnings before interest and taxes (EBIT) margins to be “impressive.”
According to Deutsche Bank, Capital One provides “a solid return and superior relative upside vs peers.” “This strength is driven by a continued pristine credit environment, elevated demand in the used auto market, and stronger consumer confidence,” the company’s analysts wrote, referring to its auto loans business.
Wells Fargo is another pick for the bank, which claims to have “the most leverage” to benefit from loan growth and rising interest rates, “both key themes likely to drive bank stocks over the next 6-9 months.”
Everest Re Group, which is also on Deutsche Bank’s list, held its first investor day last month. “Our main takeaway is that significant changes in the operational strategy should result in meaningful improvements in the business’s underwriting performance,” the analysts wrote. “Investor expectations for Everest’s earnings profile remain overly conservative,” they added.
Best stocks to buy now according to HSBC
According to HSBC, all of its picks are buy-rated and “poised to benefit from Energy Transition.”
It comes at a time when politicians and business leaders are publicly recognizing the need to transition to a low-carbon society in order to limit global warming. However, progress is slow, and in some cases non-existent. According to the US Energy Information Administration, global carbon dioxide emissions from energy-related sources will continue to rise in the coming decades.
As a result, both governments and corporations are under increasing pressure to do more.
HSBC’s stock picks in the space “span the entire transition value chain from ‘spades and shovels’ enablers of renewable power and electrification of transportation, to generation and distribution assets,” analysts wrote in a research note published Tuesday.
Among the stocks are:
Energy from renewable sources
Daqo New Energy, a Chinese firm that produces polysilicon, a component of solar panels, has a potential upside of 98.3 percent to its current share price, according to HSBC. According to HSBC, the company is the “highest quality producer in China.”
In Europe, E.ON is a top pick for HSBC, which describes it as “the only way to own energy transition via low-voltage regulated networks,” referring to how electricity is distributed. According to the bank, “one in every five renewable power units is linked to an E.ON network,” and the low-voltage business is expected to grow. According to HSBC, the stock has a 16.6 percent upside potential.
According to the bank, Siemens is a “leading supplier of equipment and services across the global energy sector,” and it has made a “targeted push” into Asia. The bank estimates its upside potential to be 37.2 percent.
Vehicles that run on electricity
“Volkswagen is the single best positioned ‘future mobility’ company in Europe,” according to HSBC analysts, giving the stock a potential 30.2 percent price increase. The automaker’s “strong” financial performance and expansion into connected and digital services are also favored by the bank.
According to HSBC, French auto supplier Faurecia (with a 31 percent potential upside) is also a pick, and it is currently trading at a more than 20 percent discount to its peers. The bank is pleased with its foray into hydrogen storage systems for vehicles.
According to HSBChttps://beststocks.com/these-are-the-best-solar-stocks/, LG Chemical is a market leader in the production of EV batteries and will benefit from market consolidation in the long run. According to the bank, the stock’s share price has a potential upside of 27.6 percent.
According to HSBC analysts, Samsung SDI will “stand out” from its EV battery competitors due to its advanced technology and ties with leading Original Equipment Manufacturers (OEMs) – companies that manufacture official auto parts. According to HSBC, the stock has a 30.4 percent upside potential.
According to the bank, Johnson Matthey, a chemical company, produces battery components and earns around 100 million pounds ($72.6 million) per year from its fuel cell and hydrogen production technologies. According to HSBC, there is a “significant” opportunity to increase this to between 5 and 7 billion pounds by 2030, and the stock has a potential upside of 29.1 percent.
Amyris, a company based in the United States, was chosen by HSBC for its “innovative” technology, which involves the use of sugar cane to produce ingredients for beauty products. (The company also makes biologically-made squalene, which is found in some Covid-19 vaccines and is derived from shark livers in nature.) According to HSBC, the stock has a potential upside of 19.4 percent.