US Equity Strategy: Sector themes+trades: flywheels at a discount

研报英文原文证据摘录

US Equity Strategy: Sector themes+trades: flywheels at a discount

Global Research

20 July 2026ab

US Equity Strategy Equity Strategy

AmericasSector themes+trades: flywheels at a discount

Keith Parker

Strategist

Underpriced S-curves versus overpriced durability keith.parker@ubs.com

+1-212-713 3296

We believe the market is not fully pricing the reinforcing effects of steepening demand

curves, constrained capacity, rising cash flow, falling uncertainty and expanding Sean Simonds

Strategistfinancing activity. Several accelerating growth cycles remain priced as transitory, while

sean.simonds@ubs.com

many slower-growth businesses continue to trade on assumptions of durable growth +1-212-713 2851

and pricing power. In our view, the opportunity is increasingly about owning

underpriced inflections and avoiding overpriced durability. Shreyas Guntur

shreyas.guntur@ubs.com

Tech+ shows the clearest evidence that faster growth is not fully reflected in valuation. +44-20-7567 0886

Its forward 3-5 year sales CAGR has increased by ~5pp over the last 15mo, nearly the

Marc el Koussa

entire ex-Tech sales growth rate of 5.5%, yet Tech+ trades at only 1.5x P/E-to-sales Strategist

growth versus 3x for ex-Tech. In other words, the market is paying less per unit of marc.el-koussa@ubs.com

improving growth in Tech+ than in slower-growth areas of the market. The broader +44-20-7567 0298

opportunity is to find similar disconnects across sectors. Gerry Fowler

Themes and trades: fundamental inflections versus market pricing gerry.fowler@ubs.com

We extend this analysis across key themes to identify where growth, margins and cash +44-20-7567 5490

flow are inflecting faster than multiples and where weaker demand, pricing power or Maxwell Grinacoff, CFA