The Swiss equity market has achieved an upside breakout after several months of consolidation, with all three technical momentum indicators confirming the positive technical picture. From a technical analysis perspective, we expect further upside potential for the Swiss equity market and are taking the opportunity to highlight the technical merits of our top five stocks: Holcim, ABB, Galderma, BB Biotech and Sandoz.

As part of our 2025 review and 2026 outlook, we have made changes to our Top Picks list for Swiss equities. The changes, which include a stronger focus on healthcare and small-cap stocks, reflect the fact that the investment climate and 2026 outlook have improved thanks to reduced risks in connection with US tariff and healthcare policies. The new entries are Alcon (ophthalmology) and Dätwyler (pharmaceutical packaging), both of which are poised for a new product and growth cycle. On the other hand, Schindler is fairly valued after a strong rally and has been removed from the Top Picks list.

At the UBS Best of Switzerland Equities Conference at the end of September, companies reported that economic growth continued to be dogged by uncertainties on trade as well as inflation. Throughout the summer months, consumers and producers alike remained cautious in terms of their investment decisions. A number of firms are nevertheless cautiously optimistic on account of their structural strength and transformation, Germany’s investment initiative and the ongoing boom in investment for data centres. At the same time, companies are having to contend with a weak Chinese economy. In view of the economic backdrop and company presentations, we have divided our feedback and assessment on individual firms into three categories: “Optimistic”, “Realistic” and “Cautious”. Taking into account valuations and short-term business momentum, we regard SGS, Georg Fischer and Bachem as attractive investment ideas; however, we think there are grounds for caution on shares in Straumann and Aryzta.