Most of the firms that we cover daily here at 24/7 Wall St. constantly massage their list of top stock picks for their institutional and high net worth clients, and with good reason. While constantly jumping in-and-out of stocks is typically a loser’s game, making changes to these lists makes good sense as sometimes valuations are rich or the overall theme has played out.

A new RBC research report highlights the changes to the firm’s U.S. Equity Top Picks list. While actually made in February, the changes have been posted for consumption now. Here are the additions and deletions from the portfolio for March.

LyondellBasell Industries

This top chemical company has a sterling balance sheet, but it is removed from the RBC list. LyondellBasell Industries N.V. (NYSE: LYB) manufactures chemicals and polymers, refines crude oil, produces gasoline blending components and develops and licenses technologies for production of polymers. After getting crushed last fall, the stock has rallied back nicely.

In the past the company has generated an outstanding earnings growth rate of 20.63%. What is even more impressive is the European chemical giant is looking to grow earnings at a rate that is much higher than the industry average.

With outstanding cash flow growth, and a huge market share standing, LyondellBasell makes good sense for long-term growth investors, and it is still rated at Outperform at RBC despite being removed from the list.

LyondellBasell shareholders are paid a very solid 3.1% dividend. The Thomson/First Call consensus price objective is $91.45. Shares closed trading on Wednesday $80.43.

Dow Chemical

This large cap leader makes sense in all markets and was added to the Top Picks list. Dow Chemical Co. (NYSE: DOW) is a market-driven integrated, with an industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses. It delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and agriculture. Last year, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide.

With an improving economy domestically, and emerging markets bottoming, the growth potential for a company like Dow Chemical with multiple revenues and product silos is outstanding. The stock is down a stunning 25% since mid-December, and it is offering investors a very timely entry point at current levels.

In December the company announced a huge merger with DuPont. It is planning to combine into a company valued at about $120 billion, which will then split off into three separate companies, one focused on materials, one on agriculture and one on nutrition and electronics specialty products. Many on Wall Street think that the merger offers a very solid investment for the future, and the sum-of-the-parts total may be far greater than the current value of the stock.

Dow Chemical investors receive an outstanding 3.69% dividend. The RBC price target of $60 is higher than the consensus target of $53.89. The stock closed Wednesday at $49.62.

Microsemi

This company could benefit from continued industrial demand, and its stock makes its debut on the Top Picks list. Microsemi Corp. (NASDAQ: MSCC) offers a comprehensive portfolio of semiconductor and system solutions for communications, defense and security, aerospace and industrial markets. Products include high-performance and radiation-hardened analog mixed-signal integrated circuits (ICs) and power management products; timing and synchronization devices and precise time solutions, setting the world’s standard for time; voice processing devices; RF solutions; discrete components; security technologies and scalable anti-tamper products; Ethernet solutions; Power-over-Ethernet ICs and midspans.

The company was added to the PHLX Semiconductor (SOX) last year and delivered first-quarter fiscal 2016 adjusted earnings that matched Wall Street consensus. Revenues came ahead of the consensus estimate and were driven by strong growth across all the end markets. The company also reported that for the quarter the book-to-bill ratio was greater than one, which indicates revenue growth. Top Wall Street analysts also see potential upside in the military and aerospace sectors.

RBC has a $44 price target for the stock, which is the same as the consensus estimate. Shares closed most recently at $35.96.

The changes the RBC team made make good sense. The one deletion has been on the list since 2014, and the two additions offer investors outstanding value going forward. These stocks are suitable for more risk-tolerant growth accounts.

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