UBS’ highest and lowest scoring ‘quantamental signal’ ideas

UBS analysts published their top and bottom ranking stocks in their “quantamental” model.

These are the top three and bottom three ranking stocks in each of the 11 sectors, analyzed by “quantamental signals” such as CTA momentum, crowding, EPS growth, how interest rates affect the stocks, risk targeting signals, volatility, options volume, adjusted forward PE ratio, new orders, and earnings revisions.

According to the model, the highest-scoring stocks mostly come from communication services (XLC), financials (XLF), telecommunications (IYZ), transportation (XTN) and capital goods.

The lowest-scoring stock list, on the other hand, is headed by semiconductors (SMH), (SOXX), consumer services, food, beverage (PBJ), and tobacco, auto components and energy (XLE) stocks.

“Real estate (IYR) keeps showing resilience, health care (XLV) and consumer discretionary (XLY) EPS outlooks are finally picking up, and energy (XLE) earnings expectations now appear too high in our model,” Strategist Nicolas Le Roux wrote.

The three highest scoring stocks per sector in the U.S.

• Communication services: Meta (META), T-Mobile US (TMUS), Walt Disney (DIS).
• Consumer discretionary: Mohawk Industries (MHK), Hilton Worldwide (HLT), Ralph Lauren (RL).
• Consumer staples: Target Corp. (TGT), Kroger (KR), Bunge Global (BG).
• Energy: ONEOK Inc. (OKE), EOG Resources (EOG), Targa Resources (TRGP).
• Financials: Allstate Corp. (ALL), Metlife Inc. (MET), W.R. Berkley Corp. (WRB).
• Health care: Cardinal Health (CAH), HCA Healthcare (HCA), Illumina Inc. (ILMN).
• Industrials: Stanley Black & Decker (SWK), Cummins (CMI), Dayforce Inc. (DAY).
• Information technology: Arista Networks Inc. (ANET), Broadcom (AVGO), Oracle Corp. (ORCL).
• Materials: Newmont Corp. (NEM), International Flavors & Fragrances (IFF), Eastman Chemical Co. (EMN).
• Real estate: AvalonBay Communities (AVB), Federal Realty Investment Trust (FRT), Simon Property Group (SPG).
• Utilities: Eversource Energy (ES), NextEra Energy (NEE), Public Service Enterprise Group (PEG).

The lowest scoring stocks per sector in the U.S.

• Communication services: Warner Bros Discovery (WBD).
• Consumer discretionary: eBay Inc. (EBAY), VF Corp. (VFC), Tractor Supply Co. (TSCO).
• Consumer staples: Monster Beverage Corp. (MNST), Brown-Forman Corp. (BF.B), Altria Group (MO).
• Energy: APA Corp. (APA), Occidental Petroleum Corp. (OXY), Devon Energy Corp. (DVN).
• Financials: Franklin Resources Inc. (BEN), Raymond James Financial (RJF), FactSet Research Systems (FDS).
• Health care: West Pharmaceutical Services (WST), Zimmer Biomet Holdings (ZBH), Henry Schein Inc. (HSIC)
• Industrials: Old Dominion Freight (ODFL), Paychex (PAYX), A. O. Smith Corp. (AOS).
• Information technology: Intel Corp. (INTC), SolarEdge Technologies (SEDG), HP Inc. (HP).
• Materials: LyondellBasell Industries NV (LYB), Albemarle Corp. (ALB), PPG Industries Inc. (PPG).
• Real estate: Digital Realty Trust Inc. (DLR), CBRE Group (CBRE), Public Storage (PSA).
• Utilities: The Southern Co. (SO).