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Norwegian Cruise, Etsy Top UBS List of Retail-Favored Stocks

Others on the list include AMD, United, Royal Caribbean, Nvidia, MGM Resorts, Tesla, Macy's, Occidental Petroleum and APA.
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UBS has compiled a list of stocks favored by retail investors that it believes will keep rising, including Norwegian Cruise Line  (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report, Etsy  (ETSY) - Get Etsy, Inc. Report and Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report.

The bank filtered for variables including retail trade flows, call and put imbalances based on weekly expirations and Twitter sentiment.

“Aggregating these metrics into a single retail score, we find that these variables combined can provide a useful signal for future stock returns,” UBS equity strategist Keith Parker wrote in a report cited by CNBC.

Stocks with retail rankings in the top percentile have historically outperformed those in the bottom two percentiles by an average of 5.5% over the following three months, UBS found.

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“Retail participation remains elevated despite the lapsing of stimulus and reopening of the economy,” Parker said, adding that retail trading volume is up 80% from three years ago.

Norwegian Cruise and Etsy topped the UBS list with retail signal scores of 100%. Next came AMD at 99%, United Airlines  (UAL) - Get United Airlines Holdings, Inc. Report at 98%, Royal Caribbean Cruises  (RCL) - Get Royal Caribbean Cruises Ltd. Report at 98%, Nvidia  (NVDA) - Get NVIDIA Corporation Report at 98%, MGM Resorts  (MGM) - Get MGM Resorts International (MGM) Report at 98%, Tesla  (TSLA) - Get Tesla Inc Report at 97%, Macy's  (M) - Get Macy's Inc Report at 97%,

Occidental Petroleum  (OXY) - Get Occidental Petroleum Corporation Report at 97%, APA  (APA) - Get Apache Corporation Report at 97%, Dick's Sporting Goods  (DKS) - Get Dick's Sporting Goods, Inc. Report at 97%, PVH  (PVH) - Get PVH Corp. Report at 96%, Clorox  (CLX) - Get Clorox Company Report at 96%, Boeing  (BA) - Get Boeing Company Report at 96% and Southwest Airlines  (LUV) - Get Southwest Airlines Co. Report at 96%.

Norwegian Cruise recently traded at $23.21, up 0.51%; Etsy at $288.47, down 2%; AMD at $160.65, up 3%; United at $46.90, up 2%; Royal Caribbean at $80.80, up 0.41%; and Nvidia at $344, up 4%.