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Daily Traders Edge

An investor shopping list: 20 high-conviction stocks with average upside of 25%

May 16
10:01 2018

Like POTUS’s chances for a Nobel Peace Prize, investor enthusiasm for stocks may not be such a sure thing at the moment.

News that North Korea may bail on that historic summit could adding to the market’s recent worries. That’s after a jumping 10-year yield and dollar strength helped put a halt to the Dow’s eight-session advance yesterday.

If this market has truly turned a corner, investors may want a little more proof. Still, a bump in the road may not deter those who love the thrill of the hunt for good stocks.

That brings us to our call of the day from HSBC global equity strategist Ben Laider and his team. They offer up 20 stock picks from around the world, saying they have the potential to gain 25% on average from here.

Investors are looking at “more normalized and lower equity-market returns” so stock picking is even more important, Laider says. And rising volatility opens up “great opportunities for potential market dislocations and mispricing,” he writes in a note to clients.

First pick, Mosaic, which HSBC rates a buy with a $35 price target — making for 32% upside. Why buy? Short supplies seen for phosphate — vital to plant growth — as well as strong earnings and an attractive valuation.

Continue Reading at Market Watch

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