Citi’s list of stocks that could show impressive returns — while maintaining low volatility — in the next year includes Cboe Global Markets , Micron Technology and First Solar . In a recent note to clients, a team of Citi analysts led by Drew Pettit shared their positive return on equity trend basket. Pettit noted that stocks in this basket have a superior Sharpe ratio, which measures a stock’s risk-adjusted return. He added that this outperformance has persisted despite influences from global events and macro changes. “Forward earnings multiples indicate that Good ROE is trading at a discount to Bad ROE. This discount, combined with expectations for greater margin expansion and top-line acceleration, keeps us constructive on Good ROE,” Pettit wrote. “Investors should consider Good versus Bad ROE as a fundamental momentum trade that is not directly correlated to Growth or AI.” To be included in Pettit’s basket of large-cap stocks with a positive return on equity trend, shown below, tickers had to meet the following criteria: Be an S & P 500 constituent See an expected improvement in net profit margin and total asset turnover, per consensus estimates, over the next two years See an expected decline in financial leverage ratio, per consensus estimates, over the next two years Be included in the list of top 100 stocks by expected increase in return on equity, per consensus estimates, over the next two years Cboe Global Markets, up 30% this year, was one name on the list. Earlier this month, Barclays upgraded the global exchange to an overweight rating from equal weight. The bank wrote that the stock’s valuation has become “increasingly attractive.” “What we thought may have been ‘a moment’ for retail activity has shown to be a more structured, secular trend. We also like the approach being taken by CBOE’s new CEO: divesting sub-scale, less critical businesses acquired over the past ~6-7 years (freeing up capital along the way), and leaning in to the company’s core competency,” Barclays wrote. The bank’s $302 price target, up from $273, implies that shares of Cboe could add 18.5% from here. Shares of Micron Technology, also in the basket, have surged 228% this year. Last week, Bank of America upgraded the semiconductor manufacturer to a buy rating from neutral. Analyst Vivek Arya’s $300 price objective is approximately 8% above where the stock closed on Monday. “We are changing our view about 1) durability of the memory cycle (persists into CY26E on restrained supply additions and AI demand and HBM 3x by CY28E), and 2) quality of MU’s balance sheet (30% FCF margin, net cash positive, can start to buyback stock significantly in another year as Chips Act requirements get over),” the analyst wrote. Another name in Citi’s list was solar panel manufacturer First Solar. Shares have popped 52% this year. On Tuesday, Mizuho highlighted First Solar as one of its top picks in the clean energy sector. “FSLR is market leader in non-China solar module supply and we remain constructive on U.S. module price inflation due to tariffs and near-shoring that continue to benefit FSLR. We see robust backlog and FCF growth through the next 5+ years, and ability to jump-start the next module tech race with FCF from 45X manufacturing tax credits,” Mizuho wrote. The bank’s $335 price target offers upside of 24.4%.