All the firms we cover on Wall Street have a list of their highest conviction stock ideas for institutional and high net worth clients, and with the second quarter underway, many are making some changes to those lists. With the market just about flat so far this year, it appears that we will continue to have some increased volatility, and stock picking looks to be at a premium this year.

In a recent report, UBS made some significant changes to its Equity Focus list. Five companies are affected, and the analysts look to go a touch more aggressive with the new additions.

The new additions to the UBS Equity Focus list are Charter Communications Inc. (NASDAQ: CHTR) and T-Mobile US Inc. (NYSE: TMUS). The stocks removed from the Equity Focus list were Colgate-Palmolive Co. (NYSE: CL), Comcast Corp. (NASDAQ: CMCSA) and Gilead Sciences Inc. (NASDAQ: GILD).

Charter Communications

This top cable giant was added to the list as the analysts shuffled stocks in that sector (see Comcast below). Charter Communications is a leading broadband communications company and the fourth-largest cable operator in the United States. It provides a full range of advanced broadband services, including Spectrum TV video entertainment programming, Spectrum Internet access and Spectrum Voice. Spectrum Business similarly provides scalable, tailored and cost-effective broadband communications solutions to business organizations, such as business-to-business internet access, data networking, business telephone, video and music entertainment services and wireless backhaul.

The UBS team cites the acquisition of Time Warner Cable, which they feel will be approved by regulators, as a solid addition. The analysts feel that acquisition will drive significant network and video programming synergies, which should drive robust free cash flow growth.

The Thomson/First Call consensus price objective for the stock was not available. The shares closed most recently at $200.25.

T-Mobile

The UBS team believes this carrier should be bought on an increasing cash flow and valuation thesis. T-Mobile provides mobile communications services in the United States, Puerto Rico and the U.S. Virgin Islands. It offers voice, messaging and data services in the postpaid, prepaid and wholesale markets. It also provides wireless devices, including smartphones, tablets and other mobile communication devices, as well as accessories that are manufactured by various suppliers.

The company offers services, devices and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, as well as through its websites. T-Mobile also sells its devices and accessories to dealers and other third-party distributors for resale through independent third-party retail outlets and websites. It serves approximately 63 million customers.

The consensus price target for the stock is $46.07. The stock closed Tuesday at $38.89.

Colgate-Palmolive

Though it was dropped from the Equity Focus List, Colgate is top dividend payer and remains a very safe play for investors. Colgate continues to deliver solid execution and is one of the best-positioned companies in the consumer staples sector, given its strong brands in attractive categories, particularly oral care.

Over half of total revenues (52%) are derived in faster-growth emerging economies, and the company maintains leading or near-leading market shares across the Brazil, Russia, India and China (BRIC) regions. While those have slowed over the past year, a pickup in growth could be coming. The analysts cite lowering exposure to consumer staples, which makes sense as the sector has had an outstanding run.

Colgate shareholders receive a 2.2% dividend. The consensus price target is $70.88, and shares closed near that level at $71.23.

Comcast

This broadcasting stock essentially was replaced by Charter in the portfolio. Comcast is one of the nation’s largest video, high-speed internet and phone provider to residential customers under the XFINITY brand and also provides these services to businesses. Comcast has invested in technology to build an advanced network that delivers among the fastest broadband speeds and brings customers personalized video, communications and home management offerings.

The analysts like the cable industry, but prefer the Charter story now, noting that Comcast’s quantitative score has dropped due to an increase in capital expenditures.

Shareholders receive a 1.78% dividend. The consensus price target is $69.52. The shares closed Tuesday at $61.72.

Gilead Sciences

This stock is trading at an astounding multiple of less than 7.76 times estimated 2016 estimated profits. Gilead Sciences discovers, develops and commercializes medicines in areas of unmet medical need in North America, South America, Europe and the Asia-Pacific. The company’s products include Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost and Vitekta for the treatment of human immunodeficiency virus (HIV) infection in adults, and Harvoni, Sovaldi, Viread and Hepsera products for the treatment of liver disease.

The analysts cite the downgrade to Neutral in the company’s technical view, and the quantitative score has become less attractive as well.

The consensus price target is set at $114.05, and shares closed most recently at $97.24.

The tactical changes made by the analysts make sense, and investors should benefit from the focus the UBS team keeps on the metrics for making the list. Too often fund managers stray from the course, and the results can be grim.

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