Here are Credit Suisse's top stock picks for 2021, including Ulta Beauty and Booking Holdings

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Pedestrians pass in front of an Ulta Beauty store in New York.
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Credit Suisse just named its top stock picks for 2021, with names like Ulta and Constellation Brands making the list.

The firm's HOLT team — which identifies equities based on a proprietary valuation model that looks at projected future cash flows — selected a handful of stocks in the consumer staples and consumer discretionary sectors that it expects will perform well next year.

"Market implied [cash flow return on investment] for both Discretionary and Staples are lower than what is anticipated near-term, post a pandemic recovery," Credit Suisse HOLT specialist Bhumika Gashti told clients. "Compared to other hard hit by COVID sectors like Energy and Industrials, the Discretionary sector has higher historical CFROI, stronger recovery, and lower expectations."

The firm is focused on the recovering travel and leisure sector, as well as retail and value stocks showing signs of turning around.

Take a look at Credit Suisse list here.

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