UBS ‘quantity’ frame picks Fortinet, Meta, Docusign, Monday.com, Uber, Cardinal Health and Entesa as top stocks

That’s REVS in a nutshell.

Six of the top seven companies on the UBS list are from the US. Among them is Fortinet, a 24-year-old cybersecurity company that has grown explosively since Covid caused a surge in the work-from-home population. Its share price is up 34.25% in the past year alone to $79.89 today. Only Madrid-based Endesa, a power company in UBS’s EU-listed eurozone exposure, topped the other six US companies.

It should be noted that, as with most banking research, UBS “does and seeks to do business with the companies mentioned in its research reports”, so as always a degree of caution is required when interpreting the results.

“The US Growth theme is among the highest ranked in our REVS,” UBS US lead author and strategist Sean Simonds and the rest of his team wrote. Other US growth leaders were Meta, Docusign, Monday.com, Uber and Cardinal Health.

The quantitative stock selection framework gives companies a weighted score, with 30% going to the macroeconomic regime (or broader economic context), 30% going to earnings, 15% to valuations and 25% to sentiment, according to Simonds in an e- mail to wealth.

Sunnyvale, Calif.-based Fortinet scored 0.63 out of a perfect score of one. Madrid-based utility Endesa came in second with a score of 0.61.

Founded by brothers Ken and Michael Xie in 2000, Fortinet grew slowly in its first 20 years, climbing to $23.62 in November 2020. That month, while the Covid quarantine forced customers to stay at home, the stock began a year of almost missing. halts growth, reaching $69 in December 2021.

In August, Fortinet bought AI cloud security firm Lacework for an undisclosed sum and is currently valued at $61.4 billion.

Other themes ranked highly by UBS were EU-listed Eurozone Exposure, GLP-1 Winner (tracking the industry around glucagon-like peptides in Ozempic) and EU Renewables. The worst performing themes included European value stocks such as BP, Listed China Exposure including L’Oreal and US Low Income Consumer including Monster Beverage, Autozone and Dollar General, all “among the stocks with the lowest score in these topics. “, according to the report.

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