30 for 2027_ Quality Stocks for a Long-Term Holding Period

Summary of Key Points from the Conference Call Industry and Company Overview - The analysis focuses on high-quality stocks in North America, specifically highlighting a selection of 30 companies deemed suitable for long-term investment until 2027 [1][2][3][4][5]. Core Insights and Arguments - Quality Stocks Preference: The report emphasizes that high-quality stocks are preferable amid elevated market uncertainty, with the Quality factor outperforming year-to-date [2][3]. - Sustainability as a Criterion: The main criterion for selecting stocks is sustainability, which includes competitive advantage, business model, pricing power, cost efficiency, and growth potential [4]. - Analyst Contributions: Analysts were tasked with identifying the highest-quality companies in their sectors, focusing on those likely to strengthen their competitive advantages [3][4]. - Long-Term Performance: The report supports the view that quality stocks tend to outperform in the long run, with a focus on companies that will differentiate themselves by 2027 [5]. Selected Companies - The report lists 30 companies identified as high-quality long-term picks, including: - Amazon.com - Apple - Microsoft - Visa - Coca-Cola - Meta Platforms - Walmart - And others [7]. Financial Metrics and Projections - Revenue and EPS Growth: The report provides projected revenue and EPS growth rates for selected companies, with Amazon expected to have a CAGR of 11% from 2022 to 2027, while Apple is projected at 4% [13]. - Return on Net Operating Assets (RNOA): Companies like Amazon and Analog Devices are highlighted for their strong RNOA metrics, indicating efficient use of assets to generate profits [13][35]. - Valuation Metrics: The report includes valuation metrics such as P/E ratios and EV/EBIT for the selected companies, with Amazon at a P/E of 29.9x and Analog Devices at 29.1x [16]. Risk and Opportunities - Market Positioning: Companies are assessed on their ability to maintain or improve their market positions, particularly in a multipolar world [11]. - ESG Factors: Environmental, Social, and Governance (ESG) factors were integrated into the decision-making process, highlighting the importance of sustainable practices [4]. - Potential Risks: The report acknowledges potential risks associated with market volatility and policy changes but emphasizes the opportunities at the single-stock level [2][5]. Additional Insights - Innovation and Growth: Companies like Analog Devices are noted for their innovation and ability to engage with customers early in the design process, which is expected to drive future growth [36]. - AI Opportunities: Amazon's advancements in AI and logistics are highlighted as significant growth drivers, with expectations of capturing a larger market share in e-commerce [27]. Conclusion - The report concludes that the selected companies are well-positioned for long-term growth, with a focus on quality, sustainability, and innovation as key drivers of performance [5][36].