ZKB Top Stock Picks 2023
Wednesday, 28 December 2022 Reading time : 3 minutes
The Swiss Favorites 2023The new tracker certificate on the "ZKB Top Picks 2023" combines ten of the most promising Swiss stocks according to research by Zürcher Kantonalbank. The aim of this base composition is to achieve an above-average performance compared to the overall market (SPI® Index).
The year 2022 was mainly characterized by inflation, interest rate hikes and geopolitical uncertainty. This environment weighed on the stock markets and led to - in some cases significant - valuation corrections for many stocks. Despite continuing uncertainty factors, the Swiss equity market will continue to offer attractive investment opportunities in 2023, according to the research team at Zürcher Kantonalbank.
Diversification across market capitalization and sectorsThe ten selected stocks - five large caps (Alcon, Holcim, Logitech, Nestlé and Novartis), as well as five small and mid caps (Accelleron, DKSH, Helvetia, Interroll and VZ Holding) will be included in the basket during the initial fixing period with 12.00% (large caps), respectively 9.00% (small and mid caps), as well as 4.00% (VZ Holding). In relation to their market capitalization, small and mid caps are thus relatively more heavily weighted in the basket. This results in higher earnings momentum and greater upside potential, especially in positive market phases.
One of the favorites among the large caps is Alcon, a leading manufacturer of medical products in the field of ophthalmology. We also back building materials producer Holcim, which will continue to drive corporate transformation in the coming year. Furthermore, our favorites include technology stock Logitech, which has sustainably larger end markets after the pandemic. Nestlé convinces with defensive qualities and should be able to increase its margin again in the coming year. Novartis remains our favorite in the pharma sector in 2023. In the small and mid caps, we are betting on the ABB spin-off Accelleron, the global market leader in the turbocharger business. DKSH should continue to strengthen its attractive performance materials business in the coming year with a full M&A pipeline. The operating performance of the insurance asset Helvetia is expected to continue to improve in the coming year. With Interroll, we are relying on a leading supplier of innovative products for the logistics industry. At VZ Holding, we also expect strong momentum in net new money in the coming year.
Key data - Valor 121 823 384
- Stock selection by research of Zürcher Kantonalbank
- Reinvestment of net dividends
- 1 year Maturity
- CHF 100 Issue price
- Subscription deadline January 18, 2023
- Termsheet
Reverse Convertibles: Building Exposure
The Revserse Convertibles on the individual shares of the Top Stock Picks 2023 are suitable for investors who wish to invest specifically in individual components of this year's selection. If the price of the underlying is above the strike at the end of the product's term, the full capital invested is repaid in addition to the coupons. If the price of the underlying is below the strike - which is 90% for all of the following products - the underlying is delivered in addition to the coupon.
