UBS pinpoints the stocks with upside potential and downside risk heading into earnings

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Third quarter earnings season will kick off at the end of the week and between the economic slowdown and tough inflation environment, the earnings are expected to show their slowest growth of this year and the weakest since 2020, according to Refinitiv. That doesn't mean there aren't opportunities for investors, however, and UBS has identified both stocks with upside potential and those with downside risk.

"Thus, analyst fundamental conviction views should matter even more amid increased dispersion," or the range of potential outcomes from an investment, he said. Here are 5 of UBS' upside and downside picks heading into earnings season: Danaher , the medical and global science company, is the biggest name on UBS' earnings surprise list by market cap.

 

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