Citi has has identified the 27 "World Champions" of the consumer discretionary sector.
The team of analysts led by Greg Badishkanian believes that these companies have "significant and enduring business models over the long term.”
Citi's analysts also have favorable ratings on all of these stocks.
Here's Badishkanian's screening criteria:
- Market cap exceeds $3 billion;
- Minimum of top 3 in market share in a third of the company’s businesses; and
- Significant revenue streams from outside its domestic market.
The note very expressly states that subjective factors were instrumental in creating the list.
The report also highlights Coach, Intertek, and Nissan as the “best of the best” in their sectors based on financial and qualitative analysis.
Adidas
Ticker: ADS
Target Price: €76.00
3-yr EPS Growth: +16.4 percent
Sub-Sector: Textiles, Apparel and Luxury Goods
'Why it's a Champion': Adidas holds 20 percent of global sportswear market share, and stands to benefit from sales growth and scale economies.
Source: Citi Research
Amazon.com
Ticker: AMZN
Target Price: $275.00
3-yr EPS Growth: +2941.0 percent
Sub-Sector: Internet & Catalog Retail
'Why it's a Champion': Amazon is the leading online retailer in the U.S. and around the world,and remains well-positioned for continued market share gain and profit margin growth internationally.
Source: Citi Research
BMW
Ticker: BMW
Target Price: €68.00
3-yr EPS Growth: -2.6 percent
Sub-Sector: Automobiles
'Why it's a Champion': Globally, BMW is near the top of the luxury car industry, but faces risks to its growth in China.
Source: Citi Research
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