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Citi research analysts screen for stocks in the Russell 200 with positive implied growth settings (NYSE: Yes).
These stocks have below-average crowding scores and positive surprises are expected.
“The key is to look for stocks that imply growth mechanisms. The crowding score is confirmed, but the underlying risk is tilted in the opposite direction.
Citi analysts said in a U.S. Equity Strategy note that they believe stocks are likely to fare better on earnings if they have a positive or neutral implied growth scenario, a crowding score of 0.50 or lower, and positive surprises on the horizon. Attractive.
Here are the undisclosed stocks in the Russell 200 (IWY) universe:
(all crowding scores are <0.5 and have positive expected surprises)
- Airbnb Inc. (ABNB) – Highest market-implied growth forecast: 15.5%
- Lululemon Athletica Inc. (LULU) – Highest consensus growth estimate: 11.4%
- The Estée Lauder Companies (EL) – Highest market-implied growth forecast: 25.9%
- Kraft Heinz (KHC) – Highest market-implied growth forecast: -2.4%
- Mondelez International Inc. (MDLZ) – Highest consensus growth forecast: 10.1%
- Altria Group (MO) – Highest market-implied growth forecast: -2.4%
- Procter & Gamble (PG) – Highest market-implied growth forecast: 11.1%
- Target Corp. (TGT) – Highest consensus growth forecast: 5.2%
- PayPal Holdings Inc. (PYPL) – Highest consensus growth forecast: 8.4%
- Medtronic (MDT) – Highest market-implied growth forecast: 8.1%
- Moderna Inc. (mRNA) – Highest market-implied growth estimate: 22.2%
- Vertex Pharmaceuticals Inc. (VRTX) – Highest Market Implied Growth Estimate: 17.5%
- Automatic Data Processing (ADP) – Highest market implied growth estimate: 10.1%
- Caterpillar (CAT) – Highest market-implied growth forecast: 4.7%
- Deere & Co. (DE) – Highest market-implied growth forecast: 10.7%
- Illinois Tool Works, Inc. (ITW) – Highest market-implied growth estimate: 7.6%
- Accenture A (ACN) – Highest market-implied growth estimate: 10.4%
- Cisco Systems (CSCO) – Highest market-implied growth forecast: 2.6%
- Fortinet Inc. (FTNT) – Highest market-implied growth estimate: 15%
- Intel Corporation (INTC) – Highest market-implied growth forecast: 24.8%
- Snowflake Inc. Class A (SNOW) – Highest market-implied growth estimate: 30.2%
- Atlassian Corp. Class A (TEAM) – Highest market-implied growth estimate: 19.7%
- Southern Co. (SO) – Highest consensus growth estimate: 7.9%
