As the market experienced a significant sell-off last week, with the Dow Jones Industrial Average dropping nearly 500 points and other major indexes following suit, investors are left wondering about the future. The fear of a recession looms large, causing panic among traders. However, amid the market turmoil, there may be some stocks that are poised for gains.
Despite the recent market volatility, UBS has unveiled its top stock picks for August, adding three new names to the list from the industrials and materials sectors. Among the new additions are Freeport-McMoRan and Norfolk Southern, signaling UBS’s confidence in these companies’ growth potential.
One of the top picks on UBS’s list is Air Products and Chemicals, a company that has seen its shares rise around 5% this year. The stock surged 9% after beating third-quarter earnings estimates, showcasing its strong financial performance. UBS highlighted Air Products’ role in the energy transition, particularly in large “blue” and “green” hydrogen projects, which are expected to drive long-term growth.
Boeing, another company on UBS’s list, has faced challenges this year, with its shares down more than 31%. However, UBS remains optimistic about the company’s future, citing improvements in deliveries and cash flow. The recent appointment of Robert “Kelly” Ortberg as CEO is seen as a positive move that may lead to cultural change and improved accountability within the company.
Meta Platforms, a pick that was already on UBS’s list, has continued to perform well, with shares up more than 40% this year. The company surpassed Wall Street’s expectations for the second quarter, leading to a spike in its stock price. UBS views Meta as attractively valued, with potential for further growth and profitability in the coming years.
As we move into the second half of the year and beyond, UBS expects to see continued growth and success for its top stock picks. The firm believes that these companies have solid fundamentals and are well-positioned to navigate through any market turbulence. Investors who are looking for opportunities amidst the current market uncertainty may find UBS’s top picks to be worth considering.
While the market may be facing challenges and uncertainties, there are still opportunities for gains for investors who are willing to do their homework and select quality stocks. By following the recommendations of reputable firms like UBS and staying informed about market trends, investors can make informed decisions and position themselves for success in the long run.