{"id":30942,"date":"2022-05-31T19:38:03","date_gmt":"2022-05-31T19:38:03","guid":{"rendered":"https:\/\/harchi90.com\/these-quality-cyclical-stocks-have-sold-off-too-much-and-are-due-for-a-bounce-ubs-says\/"},"modified":"2022-05-31T19:38:03","modified_gmt":"2022-05-31T19:38:03","slug":"these-quality-cyclical-stocks-have-sold-off-too-much-and-are-due-for-a-bounce-ubs-says","status":"publish","type":"post","link":"https:\/\/harchi90.com\/these-quality-cyclical-stocks-have-sold-off-too-much-and-are-due-for-a-bounce-ubs-says\/","title":{"rendered":"These &#8216;quality cyclical&#8217; stocks have sold off too much and are due for a bounce, UBS says"},"content":{"rendered":"<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">The S &#038; P 500 came off its lows for the year after last week&#8217;s big bounce, and UBS has highlighted several stocks that could be good to own as the market continues to recover.  Investors are uncertain of the rally&#8217;s sustainability as signs of peaking inflation and overblown inflation fears have started to show.  In a Tuesday note, UBS said the S &#038; P 500 is oversold by 4 percentage points for the year on fears of a recession induced by the Federal Reserve.  The firm said investors should look to quality cyclical stocks for good post-sell-off opportunities.  &#8220;Tightening of financial conditions was the biggest headwind to equities (-8ppts) but peak Fed hawkishness and falling bond vol should mitigate further downside,&#8221; strategist Keith Parker said in the note.  &#8220;Our models indicate that cyclicals vs defensives have undershot macro drivers by 10% over the last 3mo, the largest amount since 2012, providing a supportive buffer,&#8221; Parker added.  &#8220;Cyclicals vs defensives have historically recovered 3% -5% over the next 3-6mo when dislocations have reached these extremes.&#8221;  UBS screened for 40 cyclical quality stocks in the S &#038; P 1500 that the firm says have undershot fundamentals based on its models.  Parker said the screen has underperformed the S &#038; P 500 by 9% since the second quarter, and it has an implied upside of 11% to the firm&#8217;s models&#8217; fair value.  The list does not include sell-rated names.  Here are 10 of the stocks: Source: UBS Under Armor is one of the smaller companies by market cap mentioned, and it rates in the 99th percentile of UBS &#8216;cyclical ranking.  The stock is currently down about 50% for the year.  Bath &#038; Body Works is right behind it, in the 98th percentile in the cyclical ranking.  The stock has fallen 41% in 2022. In the quality ranking, T. Rowe Price is the top stock mentioned, in the 99th percentile.  Shares are off 35% for the year.  Other top quality names include Align Technology and Applied Materials, which have lost 57% and 25% in 2022, respectively.  Simon Property Group, Avis Budget Group, American Financial Group, Nucor Corporation and Gartner are also in the screen.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<\/div>\n<\/div>\n<p>    .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S &#038; P 500 came off its lows for the year after last week&#8217;s big bounce, and UBS has highlighted several stocks that could be good to own as the market continues to recover. Investors are uncertain of the rally&#8217;s sustainability as signs of peaking inflation and overblown inflation fears have started to show. &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/these-quality-cyclical-stocks-have-sold-off-too-much-and-are-due-for-a-bounce-ubs-says\/\"> <span class=\"screen-reader-text\">These &#8216;quality cyclical&#8217; stocks have sold off too much and are due for a bounce, UBS says<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":30943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[15286,15287,9369,840,9756,118,15288,246,112,3022,12517,231,15285,3315],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/image.cnbcfm.com\/api\/v1\/image\/106970652-1636027222300-gettyimages-1351170305-l1002540_2021110344624072.jpeg?ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106970652-1636027222300-gettyimages-1351170305-l1002540_2021110344624072.jpeg?v=1654014273&w=1920&h=1080","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/30942"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=30942"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/30942\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media\/30943"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=30942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=30942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=30942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}