- Credit Suisse released a new report outlining their high-conviction stock picks for Q3 of this year.
- The note includes 66 investment ideas across 28 subsectors.
- Insider lists their top 19 high-conviction stock picks where Wall Street consensus isn’t overly bullish.
- See more stories on Insider’s business page.
It’s a challenging time to be a stock picker with both US major indices and equity valuations at all-time highs.
Finding new opportunities in this market can be tricky, especially in today’s “buy everything” environment.
One way to look for hidden outliers is to examine the consensus forecasts amongst analysts.
If an investor is able to spot an investment idea with strong fundamentals and catalysts where the consensus on Wall Street isn’t overly bullish, they could see a handsome payout if they’re right.
Thankfully, investors don’t need to do all this homework themselves. Credit Suisse just released their third-quarter top investment ideas in a research note on July 22.
The note outlines their top 66 European picks across 28 sub sectors.
Included within the list are the analysts’ highest conviction stock picks where Wall Street consensus is not overly bullish.
The analysts call this their “out on a limb” stock list.
“We assess the conviction level of CS analysts for their top Outperform picks by comparing their (i) EPS estimates (FY2) and (ii) target price estimates (12-month rolling) to consensus estimates,” Credit Suisse analyst Joelle Anamootoo Natzkoff said in the report. “We measure the level of consensus bullishness by calculating the Net Consensus recommendation balance as: (Number of Buy recommendations – Number of Hold recommendations – Number of Sell recommendations) / Total Number of ratings.”
Insider breaks down Credit Suisse’s top 19 “out on a limb” European picks, including six stocks set to surge more than 30%. The upside to price target is calculated from prices listed in the July 22 report.