UBS has identified stocks at risk of dragging one of Europe's largest equities indexes lower by 10% by the end of this year.
In addition, it said the consensus estimate of 11.9x for the forward price-to-earnings ratio is "too high" — another reason for stocks to fall.
UBS screened for stocks with high volatility, negative earnings revisions already underway, and valuation multiples not yet in the single digits.
The above table includes top performers in 2023 so far that may be both overcrowded and expensive, like luxury and semiconductor stocks, according to UBS.
UBS also screened for more defensive, less volatile stocks that score well on its framework.
Persons:
Gerry Fowler, — CNBC's Michael Bloom
Organizations:
UBS, Stocks, ASML, Siemens, Airbus, AstraZeneca, Novartis, Unilever, Iberdrola
Locations:
Europe, Swiss