UBS Identifies 56 U.S. Stocks With Potentially Underpriced Growth

UBS identified 56 U.S. companies whose valuations may not fully reflect their growth, cash-flow profitability and improving earnings momentum, highlighting a group that outpaces the S&P 500 on key operating measures.

The basket’s forward sales compound annual growth rate is 15%, more than double the 7% rate for the S&P 500. Its median HOLT cash-flow return on investment is 34%, compared with 19% for the index.

Semiconductors and technology represent the strongest areas of the basket. Notable companies include NVIDIA, Broadcom, Microsoft, Advanced Micro Devices, Uber, Salesforce, Micron Technology and Dell Technologies.

Other companies in the 56-stock basket include eBay, Expedia, American Express, Texas Instruments, Western Digital, Autodesk, Nasdaq, BlackRock and AbbVie.