JPMorgan has named a raft of European stocks it described as having high yields, strong balance sheets and safe dividends, such as BT Group , Bayer and Sainsbury's .
In a July 3 note detailing its outlook for the second half of the year, analysts led by Mislav Matejka stated: "Our pecking order for 2H is: bullish on Staples, Utilities, Telecoms and Healthcare, European Energy could hold up well."
The bank said international markets had outperformed the U.S., adding that it sees a "significant valuation discount in International vs US stocks."
Its European Sustainable yield basket — made up of 40 "high- and sustainable-yielding European stocks, with safe dividends and strong balance sheets" — include stocks across the bank's preferred sectors.
JPMorgan also chose a number of "cheap" global sectors it expects to outperform, including telecoms, energy and staples.
Persons:
Mislav Matejka, JPMorgan's, J Sainsbury, Banks, Michael Bloom
Organizations:
JPMorgan, BT Group, Bayer, Sainsbury's, Healthcare, European Energy, International, Novartis, Sanofi, Telefonica, Telia
Locations:
Staples, Utilities, Swiss, Norwegian, Spanish, Swedish, Europe