Shares are tumbling in September as traders weigh the prospect of a recession forward. Nonetheless, UBS believes some high-quality, high-confidence names can carry out properly whatever the downturn. “We at present view high quality as the most effective threat/reward amongst elements,” UBS strategist Keith Parker mentioned in a Tuesday be aware. “When fairness market recession chances transfer above the eightieth percentile (ie in June), prime quality has traditionally underperformed by 10-15% over the following 12 months, no matter whether or not the recession occurred. truly materializes – presents a pretty alternative,” he added. All main averages are set to publish declines in August as merchants goal the length of the present fee mountaineering cycle. Each the Dow Jones Industrial Common and the S&P 500 are down greater than 3% this month, and the Nasdaq Composite is on tempo to document losses of almost 4%. Nonetheless, high-quality shares “nonetheless have room to maneuver to cyclical highs, particularly given elevated recession threat,” based on UBS. Top quality, mixed momentum and basic progress shares are probably the most enticing alternatives within the downturn, the funding agency mentioned. UBS has curated a number of inventory names in its protection which can be of top quality and throughout the prime 20% of bettering high quality, with common free money move yields and robust gross sales progress, based on the be aware. . Moreover, these picks are rated as buys with over 20% upside. Listed below are seven names: UBS says TE Connectivity, a maker of connectors and sensors for a lot of industries, is a extremely credible decide. In response to the be aware, the corporate would be the beneficiary of the electrical car transition, which “doubles the income alternative.” UBS believes the inventory will rise 30% from Friday’s closing worth. “We anticipate TE Auto’s progress to be above historic ranges as EV market share combine and EV unit manufacturing are impacted,” the be aware learn. In the meantime, Alta is one other extremely dependable selection. UBS analysts anticipate demand for magnificence merchandise, particularly pores and skin and hair care, to stay robust subsequent yr and into 2023. Within the brief time period, the wonder retailer will proceed to profit from the reopening development. The strategist additionally accepted of the corporate’s ad-targeting capabilities. Alta is predicted to develop by 29%. In response to the be aware, SBA Communications is the tower operator “finest positioned for the upcoming 5G funding cycle”. UBS In response to Actual property shares can bounce 24%. Different shares on the checklist embrace NextEra Power, Knight-Swift Transportation Holdings, Microsoft and Alphabet. —CNBC’s Michael Bloom contributed to this report.