United States progress firms are killing it, in response to a report printed at the moment by Zurich-based UBS. Titled ‘Theme-ometer,’ the report features a listing of 20 firms that rank highest and 20 ranked lowest, based mostly on the financial institution’s proprietary “quantimental stock selection framework” that breaks down firm efficiency into 4 classes: the macro financial regime (R), the working surroundings for earnings (E), the market evaluation of valuations (V), and by sentiment (S).
That’s REVS for brief.
Six of the highest seven highest ranked firms to make the united stateslist are from the U.S. They embody Fortinet, a 24-year-old cybersecurity firm that has grown explosively since Covid brought on the work-from-home inhabitants to balloon. Its inventory value grew by 34.25% over the previous 12 months alone, to $79.89 at the moment. Solely Madrid-based Endesa, an electrical firm in UBS’s EU Listed Eurozone Publicity theme out-ranked the opposite six U.S. firms.
Of notice, as with most financial institution analysis, UBS “does and seeks to do business with companies covered in its research reports,” in order at all times, a level of warning is important when decoding the outcomes.
“The US Growth theme is among the highest ranking in our REVS framework,” wrote lead writer, and UBS U.S. strategist, Sean Simonds, and the remaining his crew. Different U.S. Progress leaders have been Meta, Docusign, Monday.com, Uber and Cardinal Well being.
The quantimental inventory choice framework provides firms a weighted rating, with 30% based mostly on the macro financial regime (or the bigger financial context), 30% going to earnings, 15% going to valuations and 25% going to sentiment, in response to Simonds in an e mail to Fortune.
Sunnyvale, California-based Fortinet scored a 0.63 out of an ideal rating of 1. Endesa, the Madrid based mostly utility, got here in second with a rating of 0.61.
Based by brothers Ken and Michael Xie in 2000, Fortinet was a gradual grower for its first 20 years, climbing to $23.62 as of November 2020. That month, as Covid quarantine pressured shoppers to remain dwelling, the inventory began a 12 months of almost continuous progress, hitting $69 in December 2021.
In August, Fortinet purchased synthetic intelligence cloud safety agency Lacework for an undisclosed quantity, and is at the moment valued at $61.4 billion.
Different themes ranked extremely by UBS have been EU Listed Eurozone Publicity, GLP-1 Winner (monitoring the business across the Glucagon-like peptides in Ozempic), and EU Renewables. The worst performing themes included European Worth shares equivalent to BP, Listed China Publicity, together with L’Oreal, and U.S. Low Earnings Client, together with Monster Beverage, Autozone, and Greenback Basic, all of which “are among the lowest scoring stocks in these themes,” in response to the report.
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