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As stocks prepare to end November on a high note, these are the names that look the most promising over the long term, according to Ned Davis Research. The S & P 500 is up 8.5% this month, while the Nasdaq Composite has advanced nearly 11%. The Dow Jones Industrial Average , meanwhile, has a 7.2% gain for November. But beyond this near-term rally, an uneasy macroeconomic backdrop hangs over the market. Investors have been fairly divided on the effects of the Federal Reserve’s rate-hiking cycle. While some believe that a broader slowdown has been avoided altogether in favor of a soft landing, others aren’t so sure that companies and consumers alike can escape unscathed. With that in mind, Ned Davis Research screened for stocks that possess the most positive drivers for long-term returns. The firm selected companies that have strong fundamentals. Metrics the company assessed include accrual ratios, operating cash flow/assets, free cash flow/assets, price momentum and shareholder yield. Here are a few of the names that were selected: The list included Apple , which has climbed nearly 46% so far this year. Of the 44 analysts covering the stock, 31 rate it either a buy or a strong buy, according to LSEG. Consensus price targets suggest about 4.5% upside from here. Earlier in November, the technology giant released its fiscal fourth-quarter earnings, which beat analysts’ expectations for both sales and earnings per share, according to LSEG, formerly known as Refinitiv. However, the company revealed that overall sales fell for the fourth quarter in a row, and it issued a weak outlook for the December quarter’s revenue. Fellow tech titan Alphabet also made the list. Forty of the 49 analysts covering Alphabet rate it a strong buy or buy, and consensus price targets call for 12% upside, per LSEG. Oil and gas giant Exxon Mobil also made the list. The stock is down 7% so far this year, but more than half of analysts covering it currently have a buy or strong buy rating. Consensus price targets call for upside of 25%, according to LSEG. On Wednesday, UBS reiterated its buy rating ahead of Exxon’s corporate plan event on Dec. 6. “While additional details on the PXD acquisition may be limited, we see the event reinforcing our view that XOM is best positioned to outperform the sector this upcycle,” the bank wrote, referring to Exxon’s previously announced merger with Pioneer Natural Resources. Other names on the list included Visa and Home Depot . — CNBC’s Fred Imbert contributed to this report.
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