As the stock market rises and rises, investors start to look for growth stocks that have not yet rallied too much or that do not have nose-bleed valuations. After all, no one wants to own stocks that they feel have risks that outweigh the rewards at the time. Add high prices with a general sense of foreboding that seems to be almost everywhere, and it becomes tough to pull the trigger with new capital that needs to be put to work. A new research report from UBS adds a top new name to their Quality Growth at a Reasonable Price, or Q-GARP, list.
We also screened all the top technology names that are currently on the list to bring our readers the UBS updates on these top names to own.
Walt Disney Co. (NYSE: DIS) is a top consumer discretionary pick that is a brand new addition to the UBS Q-GARP list. With an incredible range of properties from films to amusement parks to broadcast and cable networks, the company continues to churn out tremendous earnings. With the summer vacation season in full swing, the parks are jammed to capacity.
UBS cites the company’s strong quantitative metrics that are driven by one of the strongest and most recognizable consumer brands in the world, solid competitive advantages for the ESPN cable network and a rejuvenated production studio that is once again churning out box office hits (such as “Frozen,” which was a gigantic hit). Investors are paid a 1% dividend. The Thomson/First Call consensus price target for the stock is $89.56. Shares closed Monday at $85.74.
Apple Inc. (NASDAQ: AAPL) reports earnings after the close Tuesday, and investors will be looking very closely at the results. Reports indicate that the company has placed orders for 70 million to 80 million of the 4.7 inch and 5.5 inch iPhone 6 units. That is a sizable increase from the 50 million to 60 million iPhone 5s/5c units Apple initially ordered last year.
Despite its huge presence, Apple is one of the most underweighted stocks by portfolio managers. That may change if the earnings and forward guidance beat expectations. Shareholders are paid a 2.1% dividend. The consensus price target for the tech giant is $100.85. Apple closed Monday at $93.94.