Our Equity Top Pick List
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Honeywell's stock price may be on the verge of a breakout
Major indices began to fall at the end of last week, but the movements were news-driven, and there has been significant volatility, which has resulted in a low number of opportunities indicating a quality breakout for the past two weeks. This week, one of the stocks from our Equity Top Pick List, Honeywell, also ranked high on the momentum list. After a minor pullback, the technical picture could indeed be supportive.
Uber Falls on Negative News
Uber shares failed to follow through on their breakout attempt, and on Friday, negative news concerning the company’s robotaxi business pushed the share price down to the stop-loss level specified in our trading idea.
Our latest Investment Strategy recommends an overall neutral exposure to the equity asset class over the next 6-12 months. We believe this should be taken into account when making investment decisions in individual equities (the timing of investments or the size of positions).
The list includes those stocks, typically US and European ones, that we consider to be proper investment choices from a fundamental point of view. At the sector level, we examine the relative position of each stock on the basis of indicators (like valuation, profit growth prospects, indebtedness, quality), and then, after an individual analysis of the best performers, we select the companies we consider most attractive from a risk/return perspective.
Given the fundamental selection process, the stocks on the list should be treated as longer-term investment opportunities, but are reviewed on a quarterly basis to check whether the stock is on track with our original expectations or whether there is a sector peer with a better risk/return profile. The list can provide a starting point for building a sector-diversified equity exposure in portfolios, but can also be used as a watch list. In the latter case, the technical analysis methodology should be used to time/determine the specific investment decision. This is the purpose of our Trading Ideas report, which will also provide a specific trading strategy for the stocks on the list, if indicated.
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