economy
What to buy now with the market at all-time highs, according to UBS
UBS highlighted Broadcom and Accenture as two stocks that investors could consider buying as the S&P 500 trades near its all-time highs.
TL;DR
- UBS suggests investors can find opportunities even with stocks near all-time highs.
- Two categories of stocks are recommended: those with inflecting fundamentals and quality laggards.
- Inflecting fundamentals stocks show improving CFROI and strong momentum, with Broadcom cited as an example.
- Quality laggards are high-quality companies with high CFROI forecasts that have declined year-to-date, with Accenture as a prime example.
- Broadcom's leadership in ASIC chips and AI is driving strong results, with CFROI expected to exceed 80% by 2027.
- Accenture's CFROI has consistently been above 20% for two decades, yet its stock has declined due to AI-related concerns.
- Other mentioned stocks include Nvidia, Micron Technology, Palantir Technologies, Reddit, Microsoft, Adobe, Take-Two Interactive, and Salesforce.