Citi picks greatest Purchase and Promote shares in all sectors, leaning to high quality and momentum

Citi is taking a look at a extra growth-style inventory choice because it screens in all sectors.

“Our base case yr finish ‘22 worth goal of 4200 for the S&P 500 (SP500) (NYSEARCA:SPY) is based on each a situation weighted chance method and 18-19x a $226 full yr ’22 high down earnings estimate,” strategist Scott Chronert wrote in a notice.

“We venture a rising recession chance throughout 1H ‘23. Over the intermediate time period count on volatility between a 3650-4700 vary as traders weigh weaker development versus a probably much less hawkish Fed,” Chronert mentioned.

“There is no such thing as a change to our view that a number of compression, pushed by rising actual charges and Fed coverage expectations, has principally run its course,” he mentioned. “Earnings expectations grow to be the extra vital toggle from right here.”

“With this notice, we transfer extra towards the Progress-style and additional away from our model agnostic name since Might. Amongst elements, we desire High quality and Momentum over Min/Low Vol and Enhanced Worth.”

We “embrace inventory display for every GICS sector of Citi’s high Purchase- and Promote-rated shares based mostly on anticipated whole return (ETR),” Chronert added. “We embrace S&P 1500 (SPTM) names to broaden our scope for traders searching for particular alpha alternatives.”

The picks by sector are:

Communications Providers (XLC), Citi charges Market Weight

Buys

• DISH Community (DISH), ETR 96.6%
• Paramount International (PARA), 64.9%
• Phone and Information Methods (TDS), 64.9%
• Warner Bros Discovery (WBD), 59.5%
• Meta Platforms (META), 48.4%
• Disney (DIS), 44.4%
• AT&T (T), 37.9%
• Cogent Communications (CCOI), 37.3%
• Alphabet (GOOGL), 36%
• Omnicom (OMC), 29.2%

Sells

• Gannett (GCI), -20.6%
• Consolidated Communication (CNSL), -8.6%

Shopper Discretionary (XLY), Underweight

Buys

• Common Motors (GM), 114%
• MGM Resorts (MGM), 68.5%
• Boot Barn (BOOT), 68.9%
• Stride (LRN), 63.3%
• YETI (YETI), 60.6%
• Las Vegas Sands (LVS), 46.1%
• Amazon.com (AMZN), 46.5%
• Reserving Holdings (BKNG), 43.1%
• Domino’s Pizza (DPZ), 37.2%

Sells

• Tesla (TSLA), 53.5%
• Hole (GPS), -22.2%
• Carter’s (CRI), -11.8%

Shopper Staples (XLP), Market Weight

Buys

• Merely Good Meals (SMPL), 61.7%
• BellRing Manufacturers (BRBR), 44.4%
• Walmart (WMT), 23%
• Hostess Manufacturers (TWNK), 17.2%

Sells

Vitality (XLE), Market Weight

Buys

• Oceaneering Worldwide (OII), 110.1%
• Baker Hughes (BKR), 67.4%
• Haliburton (HAL), 64.9%
• ProPetro Holding (PUMP), 62.4%
• Patterson-UTI Vitality (PTEN), 43.7%
• APA (APA), 41%
• ChampionX (CHX), 37.2%
• Schlumberger (SLB), 27.4%
• Pioneer Pure (PXD), 13.1%
• Diamondback Vitality (FANG), 12.2%

Financials (XLF), Underweight

Buys

• Synchrony Monetary (SYF), 56.2%
• Capital One (COF), 55.1%
• Voya Monetary (VOYA), 31.9%
• Hartford Monetary (HIG), 30.2%
• Comerica (CMA), 22.3%
• SLM (SLM), 19%
• Financial institution of America (BAC), 18.5%
• MetLife (MET), 18.9%
• JPMorgan Chase (JPM), 17.9%
• Allstate (ALL), 17.3%

Sells

• Progressive (PGR), -19%
• Principal Monetary (PFG), -16.5%
• Reinsurance Group (RGA), -13.4%
• Janus Henderson (JHG), -0.8%

Healthcare (XLV), Chubby

Buys

• Owens & Minor (OMI), 108.8%
• Group Well being Methods (CYH), 102.7%
• OraSure Applied sciences (OSUR), 69.1%
• Tandem Diabetes (TNDM), 67.1%
• Sotera Well being (SHC), 65.8%
• Tenet Healthcare (THC), 65.6%
• Arcus Biosciences (RCUS), 48.9%
• Bruker (BRKR), 46.9%
• Bio-Rad Laboratories (BIO), 48.1%
• Common Well being Providers (UHS), 42.4%

Sells

• Becton Dickinson (BDX), -7.2%

Industrials (XLI), Market Weight

Buys

• Generac Holdings (GNRC), 82.1%
• Delta Air Strains (DAL), 71.3%
• United Airways (UAL), 44%
• Boeing (BA), 39.5%
• GXO Logistics (GXO), 39.5%
• GE (GE), 32.5%
• Middleby (MIDD), 29.8%
• United Leases (URI), 29.9%
• Flowserve (FLS), 30.1%
• Jacobs Options (J), 27.1%

Sells

• Stanley Black & Decker (SWK), 5.6%

Data Tech (XLK), Chubby

• Nvidia (NVDA), 91.9%
• NetApp (NTAP), 76.6%
• Lam Analysis (LRCX), 70.8%
• Euronet Worldwide (EEFT), 68.7%
• Utilized Supplies (AMAT), 69.8%
• FleetCor (FLT), 67.9%
• IPG Photonics (IPGP), 67.3%
• TD Synnex (SNX), 65.7%
• Western Digital (WDC), 58.9%
• FormFactor (FORM), 57.4%

Sells

• ExlService (EXLS), -18.2%
• Xerox (XRX), 1.1%
• Cisco (CSCO), 5.2%
• Hewlett Packard Enterprise (HPE), 7%

Supplies (XLB), Chubby

Buys

• Newmont (NEM), 141.5%
• Metal Dynamics (STLD), 46%
• Sealed Air (SEE), 39.2%
• DuPont (DD), 38.4%
• Avent (AVNT), 33.9%
• Reliance Metal & Aluminum (RS), 30.7%
• Eagle Supplies (EXP), 28.9%
• Valvoline (VVV), 26.4%
• Vulcan Supplies (VMC), 23.7%
• Avery Dennison (AVY), 23.1%

Actual Property (XLRE), Market Weight

Buys

• Digital Realty Belief (DLR), 45.6%
• Weyerhaeuser (WY), 36.4%
• Equinix (EQIX), 33.4%
• Life Storage (LSI), 34.3%
• Hudson Pacific (HPP), 33.5%
• Easterly Authorities Properties (DEA), 30.6%
• Ventas (VTR), 30.7%
• Company Workplace Properties (OFC), 28.6%
• Crown Citadel (CCI), 27.3%
• Kilroy Realty (KRC), 24.9%

Sells

Utilities (XLU), Underweight

Buys

• NRG (NRG), 18.6%
• Edison (EIX), 19.8%
• Duke Vitality (DUK), 16.7%
• DTE Vitality (DTE), 14.5%
• AES (AES), 3.5%

See the S&P performance this week.