These stocks are expected to see impressive returns while maintaining low volatility, Citi says
Citi highlighted Cboe Global Markets and First Solar as stocks within its positive return on equity trend basket.
TL;DR
- Citi's list includes Cboe Global Markets, Micron Technology, and First Solar as stocks with impressive return potential and low volatility.
- These stocks are selected based on a superior Sharpe ratio and a positive return on equity trend.
- Criteria for inclusion involve being an S&P 500 constituent with expected improvements in net profit margin, total asset turnover, and a decline in financial leverage.
- Cboe Global Markets is favored for its attractive valuation and focus on core competencies, with an implied 18.5% upside.
- Micron Technology's upgrade is based on the durability of the memory cycle and its strong balance sheet, with an analyst price objective implying 8% upside.
- First Solar is highlighted as a market leader in the non-China solar module supply, with potential benefits from tariffs and near-shoring, offering a 24.4% upside.