UBS flags 20 high-quality stocks as panic grips markets

Investing.com -- It’s been a bruising last week for U.S. equities. Market sentiment soured sharply after U.S. president Donald Trump’s new tariff policy was unveiled, triggering a wave of selling that sent the S&P 500 down 10.5% in just two days.

The index is now off 17% from its February high. According to UBS, signs of capitulation are spreading fast.

“Volatility has spiked, investor sentiment is terrible, and positioning is getting depressed,” said David Lefkowitz, CIO Head of U.S. equities at UBS.

Still, UBS strategists argue that the severity of the sell-off is creating opportunities. In their view, “the probability of a rally has increased,” even if the durability of any rebound will hinge on how tariff policies ultimately evolve.

Against this backdrop, the bank flagged 20 U.S. stocks that are “higher quality, have solid business models, and now offer, in our view, good longer-term value.”

The list spans sectors and includes Verizon (NYSE: VZ), Amazon (NASDAQ: AMZN), Life Time Group Holdings, Starbucks (NASDAQ: SBUX), Kinder Morgan (NYSE: KMI), Exxon Mobil (NYSE: XOM), Intuitive Surgical (NASDAQ: ISRG), Eli Lilly (NYSE: LLY), UnitedHealth (NYSE: UNH), Boeing (NYSE: BA), Eaton (NYSE: ETN), Parker-Hannifin (NYSE: PH), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Oracle (NYSE: ORCL), Air Products (NYSE: APD), CBRE Group (NYSE: CBRE), Prologis (NYSE: PLD), NextEra Energy (NYSE: NEE), and Xcel Energy (NASDAQ: XEL).

All stocks on the list meet three criteria: a “Most Preferred” rating by CIO, attractive valuations, and solid long-term value. Each name was vetted by UBS’s sector strategists to assess outlook and suitability, even amid a potentially prolonged period of market volatility.

Still, several risks remain. Lefkowitz cautions that “volatility may stay elevated in the near term until investors gain increased policy clarity.”

Moreover, a possible recession would likely drive further declines, and company-specific issues could also weigh on performance.

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