- UBS says the S&P 500 should rise about 10% through the end of 2022.
- Strategist Keith Parker and UBS analysts say these 11 stocks have upside of at least 25%.
- Parker says the companies are on the verge of announcing important catalysts that will boost their stocks.
- See more stories on Insider's business page .
Major stock indexes have taken a breather in recent weeks, but UBS says there is a lot of untapped potential in markets for those who know where to look.
Strategist Keith Parker says the firm recently raised its year-end target for the S&P 500 to 4,400, about 4.5% above where the benchmark index is today. He says upside to 4,650, or an annual gain of 5.6%, is possible by the end of 2022.
"While the market will need to overcome three peaks to move higher (earnings growth, economic growth, and liquidity ), we believe equities can perform," Parker wrote in a note to clients. "When earnings growth has decelerated but remained 10%+ y/y, equities have historically delivered 10% annualized returns."
That's solid, even if it's less than what stocks have delivered in the 14 months since they came out of the depths of the COVID-19 bear market . But Parker looked at a group of companies that might be able to far surpass those returns.
He's rounded up a group of underappreciated names that UBS analysts are calling their top-conviction picks. The firm believes the stocks are all under-recognized, with the Wall Street consensus overlooking some catalysts that could turn their fortunes around.
Getting in ahead of those developments, which include key earnings reports or clinical trial results, could help investors book big gains and outpace the rest of the market.
The UBS analysts who cover these stocks have concluded they each have upside of at least 25% based on their price targets. These stocks are ranked from lowest to highest based on the upside to those targets. Rankings and percentages were calculated based on Thursday's closing prices.
Via PakApNews