UBS Wealth Management told investors it remains positive on the internet sector and interactive entertainment industry ahead of earnings and noted a few stocks to watch.
"Social media, digital video and mobile search all solidly outgrowing the online/offline ad industry," wrote analyst Eric Sheridan on Tuesday, pointing to revenue trends that are expected to be in line or better.
In e-commerce, consumer consumption is in line with expectations, and the online travel sector is showing sustained momentum.
Though Sheridan noted that there are still concerns for select companies, large-cap names are still preferred among company analysts. These larger companies "should all still produce results that allow for sustained performance in the second half of 2017," he added.
In his report, Sheridan highlighted some of UBS's top ideas and provided investing insights into individual companies.
Here is a selection of stocks that UBS is watching closely before earnings.
