UBS's analysis comes after the U.S. and Iran reached a 'memorandum of understanding' to cease military operations, with a formal signing ceremony scheduled in Switzerland. The bank noted that the identified stocks have underperformed since February 27 and are rated as 'Buy' while being relatively inexpensive compared to market norms.
Southwest Airlines, which has seen a 15% increase in shares this year, is highlighted for its potential to achieve over $4 per share in earnings by 2026, supported by stable fuel prices and industry discipline, according to Jefferies analyst Sheila Kahyaoglu.
Meanwhile, Eastman Chemical, upgraded by JPMorgan to an overweight rating, has also gained nearly 15% in 2026, with analyst Jeffrey Zekauskas projecting a 6% price increase to $80 per share, driven by anticipated higher commodity earnings and a recovery in durable goods manufacturing