UBS laid out a list of U.S. and global stocks that it said would beat major indexes in 2023, calling 2023 the year of an “inflection point.” The Swiss bank said in a July 11 research note that these stock picks were its “most confident” names in a list designed to beat the MSCI All Country World Index, adding that it did not “shy away from taking some countermeasures.” In the “23 for ’23” selection list, UBS includes Baidu, Grab, Merck, Salesforce, Li Ning and Siemens. It updated its stock picks, adding Yum Brands and MGM Resorts International to the list last month and removing AbbVie and Corteva . “In 2023, we enter a ‘year of inflection points’ in inflation, interest rates and growth. Navigating these inflection points is key to investing success as they present challenges as well as opportunities. Our 23 for ’23 theme showcases our highest beliefs Stock ideas designed to benefit from these changes,” said the authors of the UBS report, led by Nadia Lovell. UBS chose Baidu because of its “leading” status as an Internet company and said it liked the company’s advertising prospects. “Baidu’s profitability should improve in the coming quarters and its valuation is attractive relative to its historical price-to-earnings multiple,” the analyst added. Opportunity” on the list. Analysts said they were “bullish on Grab due to its leading position in Southeast Asia’s ride-hailing and food delivery industries, ample net cash balance sheet and healthy competition.” , as it is a “high-quality company trading at a reasonable valuation…Moreover, we believe MRK is likely to step up its business development efforts given its strong cash flow,” the bank’s note said. UBS added MGM Resorts International to its pick list, with analysts “encouraged by the continued strength in Las Vegas and the healthy outlook for MGM.” “We also expect increased racing activity over the next two years, including a Formula 1 race in Las Vegas in late 2023, the Super Bowl in 2024 and the opening of the new Sphere venue,” they added. The bank Li-Ning, a Chinese sportswear company, was chosen because it is “constructive for the structural revenue growth of the Chinese sportswear industry, supported by rising ‘athleisure’ trends, rising health awareness and booming major sporting events in the market” . Software company Salesforce was picked for its “attractive” valuation. “Given the company’s high mix of recurring revenue and active participation in expanding margins, the stock may be more insulated from the slowdown than its peers,” the analyst said. at the forefront of Internet of Things (IIoT) transformation” for UBS. The bank also likes its status as a train manufacturer, “enhanced by a greater focus on efficient transport”. In the end, Taco Bell parent company Yum Brands was picked by UBS for its investment in online sales. “We are encouraged by Yum! Brands’ operational momentum driven by digital investments driving over $1 billion in incremental sales in 2022. We believe these continued digital investments will continue to drive positive performance.” —CNBC’s Michael Bloom contributed to this report.