The Alpha Preference list of stocks to buy at UBS is comprised of companies that are the most preferred stocks to buy within the 41 major sectors that the firm covers. These are stocks that they expect to outperform their respective sectors, which is what represents the alpha for investors. Every month the list is updated and stocks are added and dropped, based on their performance and the likelihood of hitting the Alpha Preference metrics going forward. Here are the six top new names to buy at UBS that are added to the most preferred list.
Fusion-io Inc. (NYSE: FIO) is a top new technology name added to the list. Fusion-io develops, markets and sells storage memory platforms in the United States and internationally. It offers integrated hardware and software solutions for enterprises, hyperscale data centers and small to medium enterprises that accelerate databases, virtualization, mission-critical applications, cloud computing, big data and information systems in legacy, open and proprietary architectures. The Thomson/First Call price target for the stock is $13. Fusion-io closed Monday at $10.60. This could be a top name for more aggressive investors.
Ingersoll-Rand PLC (NYSE: IR) is a name showing up at many of the top Wall Street firms we cover. The company reported strong third-quarter earnings across all segments of its business as the continuing strength in the housing market pushed orders. The consensus price target for the stock is $71.50, and Ingersoll closed Monday at $67.70. Investors receive a 1.2% dividend.
Expedia Inc. (NASDAQ: EXPE) blew out its third-quarter numbers and the stock has been on a tear. The company beat investors’ expectations in its third-quarter earnings report. Gains of 17% in revenue helped allow the online travel specialist to earnings per share that were 6% higher than investors were estimating, and Expedia also provided a positive view of the future. Investors are paid a 1% dividend. The consensus price target for the stock is $63. Expedia closed Monday at $60.24.
Gilead Sciences Inc. (NASDAQ: GILD) is a to biotech name to buy at UBS. The company has a blockbuster hepatitis C drug sofosbuvir that recently received approval from the FDA. The committee gave a 15-0 vote for two separate uses of sofosbuvir. The first vote was for sofosbuvir in combination with ribavirin to treat chronic hepatitis C genotype 2 and 3 infections. The second vote was for sofosbuvir in combination with pegylated interferon and ribavirin to treat hepatitis C genotype 1 and 4. The consensus price target for the stock is $80. Gilead closed Monday at $69.34.
Home Depot Inc. (NYSE: HD) is a top housing market winner. Monday, CNBC’s Jim Cramer made it one of his target stocks to own for 2014. The continued housing strength combined with do-it-yourself upgrades is driving strong earnings for the stock. Investors are paid a 2% dividend. The consensus price target is placed at $87, and Home Depot closed Monday at $77.
Ross Stores Inc. (NASDAQ: ROST) is another top retail name that may be poised for a strong holiday selling season. With the economy growing slowly, consumers are expected to still flock to the off-price retailers looking for bargains. Investors are paid a small 0.9% dividend. The consensus price target for the stock is posted at $75.50. Ross Stores closed Monday at $77.36.
The UBS Alpha Preference names are solid picks for investors looking for sector outperformance in their portfolio. While the market may be getting ready for a near-term sell-off, in the long run these top names will be solid additions, now and in the future.
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