The report – which seeks to identify the 10 stocks most likely to outperform the broader market in 2014 – includes companies from the automotive, consumer discretionary, consumer staples, financials, healthcare, materials and information technology sectors (see table).
The selection is in-line with S&P Capital IQ’s 2014 European Strategy Outlook, which revealed a bullish view on Europe. As Expert Investor Europe reported last month, the report forecast “multi-year” economic growth for the region, driven by a rebound in investment.
“We have screened our coverage for companies which are well positioned for this economic environment and which can deliver growth at a reasonable price – one of our consistent themes,” wrote Roger Hirst, head of European equity research at S&P Capital IQ.
“This year we include a greater exposure to financials and to European companies with exposure to the [US] and to Europe.”
Just two of the stocks in the list – ASML and Julius Baer – featured in the equivalent selection for 2013.
Regarding Julius Baer, S&P Capital IQ said the acquisition of the Merrill Lynch International Wealth Management business had expanded its presence in fast-growing emerging markets.