UBS identifies stock winners amid structural growth tailwinds

Investing.com -- In a note to clients on Thursday, UBS analysts assessed "The Next Big Thing" in global equities, focusing on companies that leverage technology to disrupt various sectors.

Through their "Global equity focus list," UBS anticipates "strong structural growth drivers to enable our recommendations to outperform the broader market".

The investment theme highlights "greentech, enabling tech, fintech, and healthtech sectors," which UBS views as "leading disruptors in sectors undergoing technological transformation, which should lead to consequential and enduring impact".

These stocks are collectively "expected to deliver superior earnings growth to the market, boosted by positive, durable structural trends supporting the theme".

In enabling technology, UBS predicts significant growth, with the sector "projected to grow to USD 1.2 trillion by 2025, i.e., 15% CAGR from FY20-25".

They "expect investors to benefit from increased tech spending and resulting strong revenue growth for the next few years," with Meta Platforms (NASDAQ: META), Alibaba (NYSE: BABA), Oracle Corporation (NYSE: ORCL), and Microsoft (NASDAQ: MSFT) among the names in its focus list.

Greentech is supported by "long-term policy support as major economies work toward reducing carbon emissions and reaching net-zero targets." Rolls-Royce (OTC: RYCEY) is one of the names on the focus list.

Fintech fundamentals "remain strong, supported by positive net interest income trends."UBS said Barclays was a top gainer in this area, while Euronext (EPA: ENX) NV is also on the list.

While healthtech has seen challenges, UBS sees "significant catch-up potential, and generative A.I. progress should act as another catalyst," noting AstraZeneca (NASDAQ: AZN) as a top gainer. Alcon (NYSE: ALC) and Intuitive Surgical (NASDAQ: ISRG) are other healthtech names featured.

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