Investors looking for ideas over the next few months have a new list to work through.
UBS has released its latest "Top Picks" list, naming 10 ASX shares its analysts see as the most compelling opportunities over the next 3 to 6 months.
The list is selected from a wider pool of 30 stocks and is updated each month.
So, which ASX shares made the cut this time?
Image source: Getty Images
Resources and industrials are in hot demand
UBS says the August reporting season reinforced what it describes as a "capex over consumer" cycle.
The broker sees stronger conditions in areas benefiting from spending on data centres, mining, energy and defence, while consumer-facing parts of the market look less attractive.
Several of the stocks on the list fit that view.
They include Genesis Minerals Ltd (ASX: GMD), which finished Monday at $8.17, Mineral Resources Ltd (ASX: MIN) at $63.06, Orica Ltd (ASX: ORI) at $22.95 and Ventia Services Group Ltd (ASX: VNT) at $5.73.
UBS is currently overweight both the mining and industrial sectors.
Megaport Ltd (ASX: MP1) also makes the cut. The data centre connectivity company closed Monday at $17.13 after a strong run this year, up 45%.
The full UBS top 10
The rest of the list is a pretty much a mixed bunch.
Auckland International Airport Ltd (ASX: AIA) finished Monday at $6.99, while AMP Ltd (ASX: AMP) closed at $2.48.
Healthcare heavyweight CSL Ltd (ASX: CSL) ended the session at $173.18, while gaming company Light & Wonder Inc (ASX: LNW) finished at $125.30.
Sigma Healthcare Ltd (ASX: SIG) rounds out the list after closing Monday at $2.69.
That gives UBS a mix of mining, infrastructure, technology, healthcare, financial and consumer-related exposure.
It's also worth remembering these are short-term picks, not necessarily the stocks UBS likes best over the next 5 or 10 years.
The list can change quickly as share prices and earnings expectations move on the daily.
What is UBS avoiding?
Just as interesting is where UBS is more cautious.
The broker isn't keen on banks, consumer discretionary shares and real estate, with higher RBA interest rates and weaker sentiment making life tougher across those parts of the market.
UBS thinks that could lead to more earnings-per-share (EPS) downgrades in the months ahead.
That leaves the broker leaning more heavily towards companies exposed to business investment and infrastructure spending.
Of course, these are only 3-to-6-month picks, and UBS refreshes the list every month.
I'd be interested to see which of these 10 are still there next time around.
