*For list of authors, see page 44-45 Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. This research report has been prepared in whole or in part by equity research analysts based outside the US who are not registered/qualified as research analysts with FINRA. Please see analyst certifications and important disclosures beginning on page 46.Equity Research Americas Top Picks Our 30 Americas Top Picks average $58.5bn market cap with over 31% upside potential to their 12-month price targets. Our average Top Pick trades at 17.8x forward earnings and offers over 18% expected ROE and 2.2% dividend yield. Equity Research 9 September 2019Equity Research Team* FOCUSBarclays | Americas Top Picks 9 September 2019 2 Barclays | Americas Top Picks 9 September 2019 3 CONTENTS U.S. EQUITY STRATEGY 4 Equities Pricing in Less Scary Outcome than Bonds TOP PICKS AMERICAS BASIC INDUSTRIES 11 Teck Resources (TECK-B.TO) 12 Chemours (CC) CONSUMER 13 Tyson Foods, Inc. (TSN) 14 Wal-Mart de Mexico (WALMEX.MX) 15 Procter & Gamble (PG) ENERGY 16 Tenaris S.A. (TS) 17 Cheniere Energy (LNG 18 EOG Resources, Inc. (EOG) 19 Enterprise Products Prtns LP (EPD) FINANCIAL SERVICES 20 Manulife Financial (MFC.TO) 21 Banorte (GFNORTEO.MX) 22 Essent Group (ESNT) 23 Progressive Corp. (PGR) 24 JPMorgan Chase & Co. (JPM) HEALTHCARE 25 Anthem (ANTM) 26 Thermo Fisher Scientific, Inc. (TMO) 27 Coherus Biosciences Inc. (CHRS) INDUSTRIALS 28 Grupo Aeroportuario del Pacifico SAB de CV (GAPB.MX) 29 Spirit Airlines, Inc. (SAVE) 30 L3Harris Technologies Inc. (LHX) 31 Aptiv PLC (APTV) 32 Owens Corning Inc. (OC) 33 MasTec Inc. (MTZ) 34 Honeywell International Inc. (HON) RETAIL 35 Las Vegas Sands Corp. (LVS) 36 Royal Caribbean (RCL) 37 McDonald’s Corp. (MCD) TECHNOLOGY 38 Motorola Solutions, Inc. (MSI) 39 Marvell Technology Group (MRVL) 40 Salesforce.Com Inc. (CRM) 41 Americas Top Picks Fundamental Data 43 European Top Picks Fundamental Data All data, including ratings, estimates and price targets, are as of 4 September 2019 unless otherwise specified Barclays | Americas Top Picks 9 September 2019 4 U.S. EQUITY STRATEGY U.S. Equity Outlook: Equities Pricing in Less Scary Outcome than Bonds Equity markets remain sanguine even as US-China trade tensions continue to escalate and the manufacturing part of the global economy continues to slow. The bond market appears much more pessimistic with the yield curve increasingly pricing in a risk of recession. The relative optimism of equity investors is likely predicated on the belief that the consumer/services sector will be relatively...
