RBC Capital Markets has put together a 71-stock list of best ideas for the long term, including Amazon (AMZN) - Get Amazon.com, Inc. Report, General Motors (GM) - Get General Motors Company Report, Meta Platforms (Facebook) (FB) - Get Meta Platforms Inc. Class A Report and PayPal (PYPL) - Get PayPal Holdings, Inc. Report.
“We believe this best ideas list is differentiated in three material ways,” wrote RBC analysts led by Graeme Pearson, global head of research.
(1) The ideas involve five themes that RBC thinks will change the world.
“(2) We take a long-term view beyond traditional 12-month price targets and ratings, which
leads to the inclusion of a number of sector perform-rated names on the list,” RBC said.
(3) The list includes ESG [environment, social, governance] considerations.
The five themes, which RBC says, “investors … must understand to prepare for the years ahead” include:
· Advancements in health care and elongated lifespans.
· The availability and monetization of personal data.
· An accelerated increase in the use of artificial intelligence.
· Continued blurring of physical and digital lines in our lives.
· Climate change.
For the first theme:
“Emerging from the Covid-19 pandemic we see the simultaneous combination of breakthroughs in medicines and therapeutics (mRNA vaccines), further advancements in healthcare availability (telemedicine) and improving transparency in the food/health connection,” RBC said.
For the second theme:
“Social media, immense amounts of personal content and consumer-first applications are shifting the balance of power away from traditional institutions into the hands of individuals,” RBC said.
For the third theme:
“While we are some time away from the general-purpose artificial intelligence that science fiction cautions us about, AI is becoming a critical component to all aspects of business,” RBC said.