2
46 Top Ideas: We highlight 40 Top Outperform Ideas
(summary link here)
and 6 Top Underperform Ideas.
Credit Suisse #1 Top Picks
What is New?
Methodology?
Overview:
Credit Suisse U.S. Equity Research – Product Marketing
“One-stop shop” for the research team’s best ideas. Every US research analyst identifies their #1 top stock pick based on a 6- to 12-month time
horizon. For each #1 name, we include: a short summary of our analyst’s reasoning, a thesis, catalysts, debate, pushbacks, valuation, latest related
research, and a relevant chart as a starting point for further analysis.
Credit Suisse HOLT
®
: For each US research analyst’s #1 top stock pick, we have worked with our partners in HOLT
®
to include a chart on Top Picks
That Rank in Top 25% in HOLT
®
,
Page 62
. And a Scorecard HOLT
®
Relative Wealth Chart.
See Appendix for more details, Page 63.
‘High Conviction Calls’: We assess the conviction level of CS analysts for their Top Outperform and Top Underperform picks by comparing their (i) EPS
estimates (FY2) and (ii) target price estimates (12-month rolling) to consensus estimates. 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.
These top picks should not be viewed as portfolios; they are simply a current snapshot of the analysts’ top picks in their coverage universes.
5 New #1 Top Outperform: PZZA, VFC, ARNA, INSM, DNB.
6 Top Underperform Ideas:. WSM, NGL, WU, AXP, CHRW, IRM.
‘High Conviction Calls’: Our highest-conviction top picks include:
• Outperform: AAP, AMZN, APTV, DVN, EW, IBM, MSI, PFSI, PTON, PZZA, SEAS, TECKn.TO, UPS, VNOM.
Page 5
• Underperform: AXP, IRM, WSM.
Page
8.
Credit Suisse HOLT
®
: We have included a HOLT
®
analysis on each of our #1 Top Picks.
HOLT Valuation Gap: Screening top picks for the least and most demanding market expectations include:
• Outperform: AAP, AMZN, APTV, CCK, CMCSA, DVN, EMR, EQH, EW, GPN, HCA, HSY, IBM.
Page 6.
• Underperform: IRM.
Page 9.
‘Top of the Crop’: Outperform-Rated Ideas. Our highest conviction combined with the least demanding market expectations.
Page 7 .
And our Underperform-
Rated Ideas. Our highest conviction and widest valuation gap.
Page 10.