Focus List Holdings by Sector

September 1, 2021 Jack Russo, CFA, Equity Sector Analyst Advice & Research

Focus List Overview

The Focus List is a concentrated list of stocks that represents a combination of the equity sector guidance from the Wells Fargo Investment Institute (WFII) and security selection from our Wells Fargo Advisors Equity Sector Analysts. The objective is to exceed the total return of the S&P 500 Index over an approximate one-year timeframe.

Focus List Holdings Statistics

Consensus Dividend Consensus EPS L-T Date Market Cap per Dividend NTM EPS Growth Added to Company Symbol Price (billion) Share Yield Estimate NTM PE Estimate List Communication Services (average) N/A N/A $644.2 N/A 0.1% N/A 36.3x 24% N/A Activision Blizzard, Inc. ATVI $82.37 $64.1 $0.47 0.6% $3.83 21.5x 14% 3/31/20 Alphabet, Inc. GOOGL $2,893.95 $1,932.1 $0.00 0.0% $99.50 29.1x 17% 3/5/20 Netflix, Inc. NFLX $569.19 $251.4 $0.00 0.0% $10.66 53.4x 32% 12/9/20 The Walt Disney Co. DIS $181.30 $329.4 $0.00 0.0% $4.42 41.0x 61% 11/17/16 Consumer Discretionary N/A N/A $554.1 N/A 0.7% N/A 29.6x 23% N/A Amazon.com, Inc. AMZN $3,470.79 $1,756.2 $0.00 0.0% $55.62 62.4x 31% 6/29/17 General Motors Co. GM $49.01 $73.5 $0.00 0.0% $5.69 8.6x 14% 3/8/21 The Home Depot, Inc. HD $326.18 $344.4 $6.60 2.0% $14.46 22.6x 10% 5/7/12 Ross Stores, Inc. ROST $118.40 $42.3 $1.14 1.0% $4.75 24.9x 39% 3/31/20 Energy N/A N/A $187.1 N/A 5.5% N/A 12.3x -2% N/A Chevron Corp. CVX $96.77 $187.1 $5.36 5.5% $7.87 12.3x -2% 5/28/21 Financials N/A N/A $258.5 N/A 2.1% N/A 16.2x 10% N/A Bank of America Corp. BAC $41.75 $354.3 $0.84 2.0% $2.91 14.4x 19% 2/22/21 BlackRock, Inc. BLK $943.29 $143.7 $16.52 1.8% $40.61 23.2x - 3/31/20 JPMorgan Chase & Co. JPM $159.95 $478.0 $3.60 2.3% $11.67 13.7x 10% 4/30/19 UBS Group AG UBS $16.66 $57.9 $0.37 2.2% - - 9% 3/8/21 Health Care N/A N/A $126.8 N/A 0.5% N/A 28.3x 39% N/A Danaher Corp. DHR $324.16 $231.4 $0.84 0.3% $9.31 34.8x 13% 2/6/18 Humana, Inc. HUM $405.42 $52.1 $2.80 0.7% $22.02 18.4x 12% 3/31/20 Zoetis, Inc. ZTS $204.56 $97.0 $1.00 0.5% $4.73 43.2x 13% 11/27/18 Industrials N/A N/A $46.5 N/A 1.2% N/A 21.3x 20% N/A Canadian Pacific Railway Ltd. CP $68.79 $45.9 $0.61 0.9% $3.42 20.1x 15% 8/6/20 Parker-Hannifin Corp. PH $296.67 $46.8 $4.12 1.4% $17.15 17.3x 10% 2/22/21 Trane Technologies Plc TT $198.50 $46.8 $2.36 1.2% $6.55 30.3x 20% 2/10/21 Information Technology N/A N/A $504.0 N/A 0.6% N/A 36.3x 16% N/A Accenture Plc ACN $336.56 $213.5 $3.52 1.0% $9.56 35.2x 11% 1/3/14 Adobe, Inc. ADBE $663.70 $316.6 $0.00 0.0% $12.87 51.6x 18% 8/6/20 ASML Holding NV ASML $833.04 $341.4 $2.78 0.3% $18.69 44.6x 26% 7/16/20 Keysight Technologies, Inc. KEYS $179.38 $33.0 $0.00 0.0% $6.47 27.7x 14% 12/9/20 Mastercard, Inc. MA $346.23 $342.0 $1.76 0.5% $9.30 37.2x 26% 4/31/19 Microsoft Corp. MSFT $301.88 $2,269.8 $2.24 0.7% $8.73 34.6x 15% 10/4/17 PayPal Holdings, Inc. PYPL $288.66 $339.2 $0.00 0.0% $5.08 56.9x 24% 7/20/15 Texas Instruments Incorporated TXN $190.91 $176.2 $4.08 2.1% $7.75 24.6x 11% 1/28/16 Materials N/A N/A $69.8 N/A 1.5% N/A 27.9x 12% N/A Air Products & Chemicals, Inc. APD $269.51 $59.7 $6.00 2.2% $10.39 25.9x 11% 11/30/20 The Sherwin-Williams Co. SHW $303.67 $80.0 $2.20 0.7% $10.05 30.2x 13% 2/10/21 Real Estate N/A N/A $99.5 N/A 1.9% N/A 60.6x 7% N/A Prologis, Inc. PLD $134.66 $99.5 $2.52 1.9% $2.22 60.6x 7% 5/28/21 Focus List Average1 N/A N/A $360.2 N/A 1.1% N/A 24.9x 15% 5/16/19 S&P 500 SP50 $4,522.68 $76.6 $57.28 1.3% $213 21.2x 16% N/A Source: FactSet, Wells Fargo Advisors, company reports 1 Simple average for market cap, dividend yield, date added. Harmonic average for PE. Median for L-T growth estimate. NTM = next twelve months EPS = earnings per share, funds from operations used for real estate investment trusts PE = price to earnings ratio L-T = long-term

Please see pages 3-5 of this report for Important Disclosures, Disclaimers and Analyst Certification

Investment and Insurance Products: NOT FDIC Insured / NO Bank Guarantee / MAY Lose Value Focus List Holdings by Sector September 1, 2021

Focus List Holdings Statistics

5-Yr Avg Fiscal NTM NTM Net S&P Consensus 52-Week 52-Week Year Relative Relative Int'l Debt / Credit Target Symbol Sub-Industry Price Low High End PE PE Sales Capital Rating Price Communication Services (average) N/A N/A N/A N/A N/A 1.4x 1.7x 44% -3% N/A N/A ATVI Interactive Home Entertainment $82.37 $71.19 $104.53 DEC 0.9x 1.3x 45% -30% A- $116.04 GOOGL Interactive Media & Services $2,893.95 $1,402.15 $2,919.41 DEC 1.3x 1.4x 53% -41% AA+ $3,185.44 NFLX Movies & Entertainment $569.19 $458.60 $593.29 DEC 2.2x 4.0x 57% 32% BB $619.79 DIS Movies & Entertainment $181.30 $117.23 $203.02 OCT 1.8x 1.5x 20% 28% A- $209.52 Consumer Discretionary N/A N/A N/A N/A N/A 0.8x 0.9x 16% 37% N/A N/A AMZN Internet & Direct Marketing Retail $3,470.79 $2,871.00 $3,773.08 DEC 2.6x 4.6x 39% 14% AA- $4,151.14 GM Automobile Manufacturers $49.01 $28.24 $64.30 DEC 0.3x 0.4x 17% 48% BBB $72.37 HD Home Improvement Retail $326.18 $246.59 $345.69 JAN 1.0x 1.1x 8% 85% A $352.39 ROST Apparel Retail $118.40 $84.68 $134.22 JAN 1.1x 1.3x 0% 1% BBB+ $140.64 Energy N/A N/A N/A N/A N/A 0.6x 1.8x 61% 20% N/A N/A CVX Integrated Oil & Gas $96.77 $65.16 $113.11 DEC 0.6x 1.8x 61% 20% AA $124.40 Financials N/A N/A N/A N/A N/A 0.6x 0.7x 37% 32% N/A N/A BAC Diversified Banks $41.75 $22.95 $43.49 DEC 0.6x 0.6x 12% 61% A- $43.97 BLK Asset Management & Custody Banks $943.29 $531.39 $959.89 DEC 1.1x 1.0x 35% 2% AA- $1,000.45 JPM Diversified Banks $159.95 $91.38 $167.44 DEC 0.6x 0.7x 24% 65% A- $168.46 UBS Diversified Capital Markets $16.66 $10.39 $17.20 DEC 0.4x 0.6x 79% 1% A- $19.04 Health Care N/A N/A N/A N/A N/A 1.3x 1.3x 36% 23% N/A N/A DHR Health Care Equipment $324.16 $192.51 $329.47 DEC 1.6x 1.4x 61% 21% BBB+ $322.47 HUM Managed Health Care $405.42 $370.22 $475.44 DEC 0.8x 1.0x 0% 17% BBB+ $494.00 ZTS Pharmaceuticals $204.56 $141.41 $208.56 DEC 1.9x 1.7x 47% 32% BBB $225.42 Industrials N/A N/A N/A N/A N/A 1.0x 1.0x 49% 34% N/A N/A CP Railroads $68.79 $56.55 $83.07 DEC 0.9x 1.0x 24% 45% BBB+ $85.50 PH Industrial Machinery $296.67 $192.25 $324.68 JUN 0.8x 0.9x 37% 39% BBB+ $363.54 TT Building Products $198.50 $115.28 $207.06 DEC 1.4x 1.1x 87% 18% BBB $202.78 Information Technology N/A N/A N/A N/A N/A 1.7x 1.5x 67% -6% N/A N/A ACN IT Consulting & Other Services $336.56 $210.42 $338.65 AUG 1.6x 1.3x 68% -29% A+ $325.29 ADBE Application Software $663.70 $420.78 $667.90 NOV 2.3x 1.9x 48% -6% A $644.00 ASML Semiconductor Equipment $833.04 $343.25 $844.16 DEC 2.2x 1.7x 100% -5% - $825.58 KEYS Electronic Equipment & Instruments $179.38 $90.62 $180.40 OCT 1.3x 1.1x 64% -2% BBB $181.75 MA Data Processing & Outsourced Services $346.23 $281.20 $401.50 DEC 1.7x 1.8x 67% 32% A+ $439.16 MSFT Systems Software $301.88 $196.25 $305.84 JUN 1.6x 1.5x 50% -21% AAA $327.43 PYPL Data Processing & Outsourced Services $288.66 $171.63 $310.16 DEC 2.5x 2.0x 49% -9% BBB+ $332.83 TXN Semiconductors $190.91 $134.12 $197.58 DEC 1.1x 1.2x 89% -7% A+ $206.03 Materials N/A N/A N/A N/A N/A 1.3x 1.3x 41% 43% N/A N/A APD Industrial Gases $269.51 $245.75 $327.89 SEP 1.2x 1.3x 62% 9% A $317.41 SHW Specialty Chemicals $303.67 $218.06 $309.98 DEC 1.4x 1.3x 20% 78% BBB- $315.52 Real Estate N/A N/A N/A N/A N/A 2.6x 2.6x 11% 34% N/A N/A PLD Industrial REITs $134.66 $93.08 $135.03 DEC 2.6x 2.6x 11% 34% A- $142.39 Focus List Average1 N/A N/A N/A N/A 1.1x 1.2x 44% 18% A- N/A S&P 500 SP50 $4,522.68 $3,209 $4,537 N/A 1.0x 1.0x 32% 31% BBB+ ecember Source: FactSet, Wells Fargo Advisors, company reports 1 Simple average for international sales, net debt/capital, S&P credit rating. Harmonic average for PEs. NTM = next twelve months PE = price to earnings ratio EPS = earnings per share, funds from operations used for real estate investment trusts

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IMPORTANT DISCLOSURES Disclosure information . . . For important disclosure information, please contact: Wells Fargo Advisors Attn: Advice & Research (Disclosure Information) One North Jefferson, St. Louis, MO 63103 Or call (877) 785-4332 Web Address: www.wellsfargoadvisors.com/disclosures/research Please remember to specify the issuer(s) with respect to which you would like to receive disclosure information.

ANALYST CERTIFICATION: The analyst who prepared this report hereby certifies that the views expressed in this report accurately reflect his/her personal views about the subject companies and their securities. The analyst also certifies that he/she has not been, is not, and will not be receiving direct or indirect compensation for expressing the specific recommendation(s) or view(s) in this report.

Disclaimers Prices and estimates are as of August 31, 2021 unless indicated otherwise.

You should be aware that investments can fluctuate in price, value and/or income, and you may get back less than you invested. We recommend that existing shareholders consider their objectives, their risk tolerance, and the size of their positions relative to their portfolios when evaluating their holdings.

Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions and the perception of individual issuers. Investments in equity securities are generally more volatile than other types of securities.

The prices of mid-cap company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions.

Investing in foreign securities presents certain unique risks not associated with domestic investments, such as currency fluctuation and political and economic changes. This may result in greater price volatility.

Sector investing can be more volatile than investments that are broadly diversified over numerous sectors of the economy and will increase a portfolio’s vulnerability to any single economic, political, or regulatory development affecting the sector. This can result in greater price volatility. The Communication Services sector is subject to the risks associated with rising interest rates which could increase debt service costs, competition, increased costs to providers due to potential for large equipment upgrades. Risks associated with the Consumer Discretionary sector include, among others, apparel price deflation due to low-cost entries, high inventory levels and pressure from e-commerce players; reduction in traditional advertising dollars, increasing household debt levels that could limit consumer appetite for discretionary purchases, declining consumer acceptance of new product introductions, and geopolitical uncertainty that could affect consumer sentiment. Consumer Staples industries can be significantly affected by competitive pricing particularly with respect to the growth of low-cost emerging market production, government regulation, the performance of the overall economy, interest rates, and consumer confidence. The Energy sector may be adversely affected by changes in worldwide energy prices, exploration, production spending, government regulation, and changes in exchange rates, depletion of natural resources, and risks that arise from extreme weather conditions. Investing in the Financial services companies will subject an investment to adverse economic or regulatory occurrences affecting the sector. Some of the risks associated with investment in the Health Care sector include competition on branded products, sales erosion due to cheaper alternatives, research and development risk, government regulations and government approval of products anticipated to enter the market. There is increased risk investing in the Industrials sector. The industries within the sector can be significantly affected by general market and economic conditions, competition, technological innovation, legislation and government

Page 3 of 5 Focus List Holdings by Sector September 1, 2021 regulations, among other things, all of which can significantly affect a portfolio’s performance. Materials industries can be significantly affected by the volatility of commodity prices, the exchange rate between foreign currency and the dollar, export/import concerns, worldwide competition, procurement and manufacturing and cost containment issues. Real estate investments have special risks, including possible illiquidity of the underlying properties, credit risk, interest rate fluctuations, and the impact of varied economic conditions. Risks associated with the Technology sector include increased competition from domestic and international companies, unexpected changes in demand, regulatory actions, technical problems with key products, and the departure of key members of management. Technology and Internet-related stocks, especially smaller, less-seasoned companies, tend to be more volatile than the overall market. Utilities are sensitive to changes in interest rates, and the securities within the sector can be volatile and may underperform in a slow economy.

Diversification does not guarantee a profit or protect against loss.

Standard & Poor's uses upper-case letters to identify a bond's credit quality rating. 'AAA' and 'AA' (high credit quality) and 'A' and 'BBB' (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ('BB', 'B', 'CCC', etc.) are considered low credit quality, and are commonly referred to as "junk bonds". Ratings may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability.

Price to earnings ratio (PE ratio) is a valuation ratio of company’s current share price compared to its per-share earnings. PE = market value per share/EPS.

Dividend payout ratio is the percentage of a company’s earnings paid out as dividends. Dividend payout ratio = dividend per share / EPS.

S&P 500 Index is a market capitalization-weighted index composed of 500 widely held common stocks that is generally considered representative of the U.S. stock market. An index is unmanaged and not available for direct investment.

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Advice & Research works with information received from various resources including, but not limited to, research from affiliated and unaffiliated research correspondents as well as other sources. Advice & Research does not assign ratings to or project target prices for any of the securities mentioned in this report.

Advice & Research receives research from affiliated and unaffiliated correspondent research providers with which Wells Fargo Advisors has an agreement to obtain research reports. Each correspondent research report reflects the different assumptions, opinions, and the methods of the analysts who prepare them. Any opinions, prices or estimates contained in this report is as of the date of this publication and is subject to change without notice.

Additional information available upon request. Past performance is not a guide to future performance. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee as to its

Page 4 of 5 Focus List Holdings by Sector September 1, 2021 accuracy or completeness. This material is published solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or investment product. Opinions and estimates are as of a certain date and subject to change without notice.

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