Observed Signal · May 27, 2026 · Analyst Note · Source: CNBC Investing · Impact: 2/5 · Sentiment: Neutral
UBS Names Stocks to Buy Amid Market Highs
UBS published a Tuesday research note recommending investors consider two stock 'baskets' despite markets trading near record highs: (1) companies with inflecting fundamentals (accelerating CFROI and strong momentum) and (2) quality laggards (high-quality firms with CFROI forecasts ≥8% that have fallen at least 5% YTD and trade below historical valuations). UBS highlighted individual names including Broadcom, Nvidia, Micron Technology, Palantir Technologies, Reddit, Accenture, Microsoft, Adobe, Take-Two Interactive and Salesforce. UBS emphasized Broadcom's strong CFROI outlook (forecast 77.1%, with CFROI forecasted to exceed 80% in 2027) and flagged Accenture as a quality laggard (shares down 34% YTD; UBS forecasts CFROI ~43.7% and notes its multi-decade CFROI track record). The research note was led by UBS HOLT sector specialist John Talbott. (Published 2026-05-27.)
UBS research identifies specific investment opportunities and metrics (CFROI) across major technology and consulting firms; useful for investors but not industry-shifting for AdTech/MarTech.
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Key Takeaways & Evidence Grounding
- UBS recommended two investor baskets: stocks with inflecting fundamentals and quality laggards.
- Broadcom (AVGO) was listed as a 'Best in Class' name; UBS found a forecast CFROI of 77.1% and expects CFROI to exceed 80% in 2027; Broadcom is up 22% year-to-date.
- Accenture was included in the quality laggards basket; shares have tumbled 34% year-to-date and UBS forecasts CFROI of 43.7%; UBS noted Accenture has generated CFROI above 20% for two decades.
- Other companies named by UBS: Nvidia, Micron Technology, Palantir Technologies, Reddit, Microsoft, Adobe, Take-Two Interactive and Salesforce.
- The UBS note and screen were produced by a team led by UBS HOLT sector specialist John Talbott.
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