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BofA Securities analysts listed the best of breed global stocks for the third quarter of the year.
The “best of breed” is a stock that represents the best investment choice for a sector or industry because of its high quality compared to its peers. In addition, these stocks are highly liquid companies with solid earnings growth and further potential for margin expansion.
According to a Global Investment Strategy report, BofA’s “global best of breed” screen outperformed the MSCI All Country World Index (NASDAQ:ACWI) by 584 basis points. The group has also returned 470% since its inception, April 5, 2010, outperforming the All Country World (ACWI) by 152% in 38 of 57 quarters through May 31.
These stocks “have strong management, balance sheets, EPS growth, cash flow,” and are the highest quality companies generate the best relative returns long-term and protect against volatility short-term,” Strategist Michael Hartnett wrote.
These are the 26 stocks:
- Nvidia Corp. (NVDA) – Buy-rated; 2024 P/E: 100.6
- Kweichow Moutai Co. Ltd. [Not covered] – Buy-rated; 2024 P/E: 21.3
- Advanced Micro Devices Inc. (AMD) – Buy-rated; 2024 P/E: 46.6
- Intuitive Surgical (ISRG) – Buy-rated; 2024 P/E: 70
- Tokyo Electron Ltd. (OTCPK:TOELY) – Buy-rated; 2024 P/E: 44.7
- Atlas Copco AB (OTCPK:ATLKY) – Buy-rated; 2024 P/E: 32.7
- Shopify Inc. (SHOP) – Neutral rated; 2024 P/E: 57
- Recruit Holdings (OTCPK:RCRRF) – Buy-rated; 2024 P/E: 36.3
- ITC [Not covered] – Buy-rated; 2024 P/E: 26.2
- NetEase Inc. (NTES) – Buy-rated; 2024 P/E: 13.9
- Bajaj Finance Ltd [Not covered] – Buy-rated; 2024 P/E: 30.3
- Palantir Technologies Inc. (PLTR) – Buy-rated; 2024 P/E: 82.5
- Edwards Lifesciences Corp. (EW) – Buy-rated; 2024 P/E: 32.2
- Monster Beverage Corp. (MNST) – Buy-rated; 2024 P/E: 29.1
- PT Bank Rayat Indonesia (OTCPK:BKRKY) – Buy-rated; 2024 P/E: 10.9
- Agilent Technologies Inc. (A) – Neutral rated; 2024 P/E: 25.5
- SMC Corp. (OTCPK:SMCAY) – Buy-rated; 2024 P/E: 27.4
- Howmet Aerospace Inc. (HWM) – Buy-rated; 2024 P/E: 33.8
- Luzhou Laojiao [Not covered] – Buy-rated; 2024 P/E: 14.2
- Veeva Systems Inc. (VEEV) – Neutral rated; 2024 P/E: 38
- Kuaishou Technology (OTCPK:KUASF) – Buy-rated; 2024 P/E: 12.7
- HEICO Corp. (HEI) – Buy-rated; 2024 P/E: 65.6
- Snap Inc. (SNAP) – Neutral rated; 2024 P/E: 64.1
- Daqin Railway [Not covered] – Buy-rated; 2024 P/E: 13.1
- Divis Laboratories Ltd [Not covered] – Buy-rated; 2024 P/E: 75
- Tsingtao Brewery Co. (OTCPK:TSGTF) – Buy-rated; 2024 P/E: 13.3