As the second half of the year kicks off, Bernstein shared its latest selection of stocks that look attractive on both a quantitative and fundamental level. Bernstein's basket of stocks includes 14 names across six sectors that are highly ranked on a quantitative basis, not crowded and rated as overweight by the firm's analysts. The firm's last portfolio using this strategy returned 17.
6% on a market cap-weighted basis over the six months since publication, matching the S & P 500's performance. "Quantitative and fundamental approaches to stock selection can each add value to the investment process, but an integrated and disciplined strategy combining the two methods can produce better results than either method alone," Bernstein analysts wrote. The updated basket comes as the broader market trades at record highs, making it difficult for investors to find attractively valued stocks.
Here is a look at some of the names in Bernstein's latest quantitative and fundamental basket of stocks: Telecommunications giant T-Mobile made the list. Shares of T-Mobile have climbed 12% this year, and analyst Ottavio Adorisio's $190 price target implies that the stock could gain another 6%. "What makes TMUS's equity story compelling is the structural nature of its two key growth drivers: 1) strong pricing power and 2) the ability to tap significant scale synergies to boost margins," the analyst wrote.
Bank of America is also bullish on the stock, with analyst David Barden raising his price tar.
