UBS sees these 29 companies as industry leaders for 2030 for using tech to disrupt

The next decade of investing looks ready to favor companies that use technology for disruption, UBS said, and it put big banks such as Goldman Sachs (NYSE:GS) on a list of 29 global companies it sees as industry leaders for 2030.

UBS recently outlined an investment theme centered on companies involved in the tech subsectors of greentech, enabling tech, fintech, and healthtech. “In our view, these are leading disruptors in sectors undergoing technological transformation, which should lead to consequential and enduring impact,” UBS analyst Hartmut Issel said in a note.

The firm listed shares of 29 companies that should deliver “superior earnings growth” to the market (SP500)(COMP:IND), bolstered by “positive, durable structural trends supporting the theme,” Issel said.

Here are the companies with thematic exposure and their YTD stock performances in the U.S. market as of Friday:

Theme: Greentech

• Air Liquide (OTCPK:AIQUY) – YTD gain: +6.4%
• E.On (OTCPK:EONGY) – YTD gain: +6.1%
• Enel (OTCPK:ENLAY) – YTD gain: +6.8%
• Linde (NASDAQ:LIN) – YTD gain: +18.4%
• Rolls-Royce (OTCPK:RYCEY) – YTD gain: +98.2%
• Samsung (OTCPK:SSNLF) – YTD loss in S. Korean market: -25.6%
• Trane Technologies (NYSE:TT) – YTD gain: +65%

The European Union and the U.S. are aiming to hit net-zero targets by 2050, while China and other Asian countries are looking at 2050–2070. In the auto industry, UBS estimates at least 30% of new vehicles sold worldwide will be electrified by 2025.

Theme: Enabling tech

• Broadcom (NASDAQ:AVGO) – YTD gain: +61.2%
• Meta Platforms (NASDAQ:META) – YTD gain: +62.9%
• Microsoft (NASDAQ:MSFT) – YTD gain: +11.2%
• Oracle (NYSE:ORCL) – YTD gain: +65.7%
• Salesforce (NYSE:CRM) – YTD gain: +11.3%
• ServiceNow (NYSE:NOW) – YTD gain: +30.5%
• Taiwan Semi (NYSE:TSM) – YTD gain: +93.1%
• Uber (NYSE:UBER) – YTD gain: +28.6%

Revenue for enabling tech could to $1.2T by 2025, or ~15% CAGR from FY20–25. AI, cybersecurity and key technologies should see swifter adoption from enterprises and governments, in part because of rising security breaches and cost controls through automation, UBS said.

Theme: Fintech

• Bank Mandiri (OTCPK:PPERY) – YTD gain: +17.6%
• Barclays (NYSE:BCS) – YTD gain: +62.9%
• Goldman Sachs (GS) – YTD gain: +37%
• Intercontinental Exchange (NYSE:ICE) – YTD gain: +29.9%
• Intesa Sanpaolo (OTCPK:ISNPY) – YTD gain: +48.8%
• Mastercard (NYSE:MA) – YTD gain: +21.1%
• Societe Generale (OTCPK:SCGLY) – YTD loss: -5.3%
• Standard Chartered (OTCPK:SCBFY) – YTD gain: +29.4%
• Vonovia (OTCPK:VONOY) – YTD gain: +11.1%

Rapid urbanization, cloud, and stronger demand from millennials are among the factors that support continued fintech growth. UBS projects fintech revenue growing at an 11.5% compound annual growth rate, to $680B in 2030 from $285B in 2022.

Theme: Healthtech

• Alcon (NYSE:ALC) – YTD gain: +21.8%
• Intuitive Surgical (NASDAQ:ISRG) – YTD gain: +54.5%
• IQVIA (NYSE:IQV) – YTD gain: +2.3%
• Lonza Group (OTCPK:LZAGY) – YTD gain: +51.7%
• Stryker (NYSE:SYK) – YTD gain: +23.4%

Healthcare spend as a percentage of global GDP is near 11%, but represents just 5% of technology spending, UBS said. “There is clearly significant catch-up potential,” and generative AI progress should be among the catalysts.