Here are Credit Suisse's favorite stocks for February

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Here are Credit Suisse's favorite stocks for February
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Despite the uncertain market backdrop, Credit Suisse highlighted several stocks it thinks can outperform going forward.

The bank added three new names to its list of highest-conviction top picks: Diamondback Energy , ServiceNow and PowerSchool . According to analyst Bill Janela, oil and gas company Diamondback Energy has an attractive relative valuation. The analyst also said: "While M & A headline risk was the frequent pushback on FANG for much of last year, acquisitions made in 4Q22 were sufficiently accretive and well received by the market such that the M & A concerns have been alleviated.

"ServiceNow is a strategic priority for the C-suite during the 'Great Reprioritization,' in which investments in Digital Transformation that provide rapid ROI have become a necessity," analyst Sami Badri said in a note. ServiceNow shares have been on fire this year, rallying nearly 20%. Returning names to the list include TransDigm Group , Discover Financial and Chipotle Mexican Grill. TransDigm Group is experiencing a strong start in 2023, with shares popping 20.

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