Credit Suisse has refreshed its list of top U.S. stock picks. The bank identified 43 outperform-rated stock ideas in a note this week, based on its analysts’ No. 1 picks on a six- to 12-month time horizon. Most stocks this month are in the technology, media, and telecom sector, although the list spans several other industries. Retailer Ross Stores , the pharmaceutical company IQVIA Holdings and electronics manufacturing services provider Flex Ltd. are newcomers to the list. Microsoft is among Credit Suisse’s “top of the crop” ideas, along with Discover Financial and Motorola Solutions . That means they’re regarded as high conviction stocks that also carry the “least demanding” market expectations. Here are 10 of Credit Suisse’s top picks: Microsoft is a recurring “top of the crop” pick, chosen by Credit Suisse analysts for its potential to “disproportionately benefit” from the accelerated shift from infrastructure and platform layers to cloud-first roadmaps. The tech stock has nearly 40% further upside, according to the firm. Analysts highlighted Discover as the card issuer with the “best growth trend” in terms of purchase volume, a trend Credit Suisse expects to continue. It also noted Discover’s focus on prime customers and reduced competition in student lending. The stock could rise almost 20% from its closing price Tuesday, according to the firm. Credit Suisse also likes Visa , and expects it to tilt more to “retail and other e-commerce, remittances, marketplace payouts, and B2B (faster growth end-markets that are less cyclical)” and less toward travel. Among the newcomers, Ross Stores is one of Credit Suisse’s top picks among discount retailers. The stock offers the most potential upside within the group, analyst Michael Binetti said, and “more torque/leverage to capture above-plan performance.” Ross is up about 4% in 2022 and yields a little more than 1%. Credit Suisse’s price target is about 4% from Tuesday’s closing price. Merck , Sunrun and Nvidia are some of the other names on the list. Correction: An earlier version of this story misstated Credit Suisse’s name.
