UBS debuts tactical screen for selloff opportunities, cuts Meta off two lists
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Updating its Tactical U.S. Equity Themes, UBS introduced a new theme of Selloff Opportunities.
The screen "highlights a list of companies that look attractive following recent market volatility."
"We believe some stocks have been unfairly punished in the sell-off," UBS' theme team wrote in a note. "We have identified companies that have still-strong fundamentals but have underperformed the S&P 500 (SP500) and now have more appealing valuations."
"The average stock on our list is 15.5% lower than its 52-week-high, compared to the S&P 500's decline of just 6.5%. We believe these stocks are poised to rebound as equity market volatility subsides."
Risks to the list included faster Fed tightening, volatility remaining elevated in the near term, a new COVID-19 variant and lower outlook for these companies if growth normalizes at a lower level.
The stocks are:

AECOM (NYSE:ACM)

Analog Devices (NASDAQ:ADI)

Costco (NASDAQ:COST)

Salesforce.com (NYSE:CRM)

Duke Realty (NYSE:DRE)

DexCom (NASDAQ:DXCM)

Edwards Lifesciences (NYSE:EW)

Goldman Sachs (NYSE:GS)

IQVIA Holdings (NYSE:IQV)

Marsh & McClennan (NYSE:MMC)

Microsoft (NASDAQ:MSFT)

Nike (NYSE:NKE)

Quanta Services (NYSE:PWR)

RPM International (NYSE:RPM)

TE Connectivity (NYSE:TEL)

Thermo Fisher (NYSE:TMO)


At the same time, UBS is taking Meta Platforms (NASDAQ:FB) off two of its lists.
It is off the Reopening America theme list after earnings clouded the company's outlook and it is off the Business Spending Rebound theme list as its "results indicate digital advertising spend will not be enough to offset weak stock price performance stemming from disappointing user growth and engagement trends."
F5 Networks (NASDAQ:FFIV) is also off the spending rebound list "in order to lighten the stock list's overweight to IT."
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