Top investment bank identifies stocks that consistently beat US market

The Deutsche Bank (DB), one of the world's leading financial institutions, has updated its regularly published list, which names several stocks that have outperformed the market and are therefore attractive investment options. The basket of stocks named in the bank's "Fresh Money" list has beaten the benchmark S&P 500 index, which tracks the stock performance of 500 leading companies listed on US stock exchanges, by 32 percentage points since its inception in 2017.

Despite the widespread volatility that has hit stock markets with the outbreak of the US-Israeli war on Iran, an article by MarketWatch notes that Deutsche Bank remains confident that opportunities for picking stocks that beat the market still remain.

Below are some of the stocks added during the bank's latest update to its list, ranging from sectors that include consumer, financials, healthcare, industrials and TMT (technology, media and telecommunications):

Colgate-Palmolive

DB analyst Steve Powers maintains a $98 price target for this consumer staples leader in personal hygiene products, citing a strong global presence. He noted that in his team's view, Colgate is making the right investments and demonstrating smart long-term priorities.

Starbucks

Starbucks stock has been highly volatile over the past year, but analysts still maintain that the company seems to be making the right investment, suggesting significant upside in both the medium and long term.

East West Bancorp

This banking stock has performed extremely well over the past year, with DB thinking it has more room to run, maintaining a price target of $113. East West Bancorp is likely to outperform its competitors thanks to a strong balance sheet and robust capital reserves, according to DB.

Visa

DB analysts provided several reasons for his $410 price target on Visa stock, viewing the credit card giant as moderately insulated from negative AI impacts, at least in the medium term. Additionally, the bank believes Visa will be among the beneficiaries of the ongoing cash-to-digital adoption.

CVS Health Corporation

DB sees CVS stock as the most likely top performer in the healthcare sector's MCO (managed care organization) Group. The bank maintains an $88 price target, highlighting the company's strong margin expansion across multiple areas.

Delta Air Lines

It hasn't been an easy start to the year for air travel stocks and Delta Air Lines is no exception, but DB analysts, who rate a $95 price target, see it as the best positioned stock to survive the rising fuel costs caused by the Iran war due to its diversified revenue streams and extremely strong balance sheet.

Intuitive Machines

This space exploration stock has been in focus recently as momentum builds for the SpaceX IPO. As the space race continues escalating, DB set a $22 price target on the company, noting that it has multiple catalysts coming up and appears tactically set up for growth.

Other companies added to the "Fresh Money" list include Equitable Holdings, Huntington Bancshares, PennyMac Financial Services, SL Green Realty, Apogee Therapeutics, Option Care Health, Thermo Fisher Scientific, ESCO Technologies, PPG Industries, Rivian, Waste Connections, Xylem, Applied Materials Corporation and Broadcom.

By Nazrin Sadigova