• Latest
  • Trending

GOLDMAN SACHS: Buy these 25 stocks expected to generate the greatest returns on their shareholders’ investments over the next year as market-wide earnings remain low

October 6, 2020
Carmakers call for gov’t support on local assembly

Carmakers call for gov’t support on local assembly

January 24, 2021
Paris Men’s Fashion Week: Fashion interpreting our new lives

Paris Men’s Fashion Week: Fashion interpreting our new lives

January 24, 2021
Converge expects 55% household coverage by 2025

Converge expects 55% household coverage by 2025

January 24, 2021
NBA licensed merchandise in Decathlon stores soon

NBA licensed merchandise in Decathlon stores soon

January 24, 2021
Alsons allots P6.54 billion for four projects

Alsons allots P6.54 billion for four projects

January 24, 2021
Latest version of Adidas Ultraboost available in February

Latest version of Adidas Ultraboost available in February

January 24, 2021
Treasury bills to fetch lower rates as investors wait for GDP report

Treasury bills to fetch lower rates as investors wait for GDP report

January 24, 2021
ASF test kit mass production provided P80-M funding — DA

ASF test kit mass production provided P80-M funding — DA

January 24, 2021
Court of Tax Appeals affirms denial of gaming firm’s refund

Court of Tax Appeals affirms denial of gaming firm’s refund

January 24, 2021
No one was hurt in the creation of the Human Leather collection

No one was hurt in the creation of the Human Leather collection

January 24, 2021
Don’t talk on the subway, say French doctors, to limit COVID-19 spread

Don’t talk on the subway, say French doctors, to limit COVID-19 spread

January 24, 2021
Top Spanish general resigns over allegations of vaccination queue-jumping

Top Spanish general resigns over allegations of vaccination queue-jumping

January 24, 2021
Retail
Sunday, January 24, 2021
  • Economy
  • Editor’s Pick
  • Investing
  • Politics
  • Stock
  • Top News
No Result
View All Result
Simple Money Goals
No Result
View All Result

GOLDMAN SACHS: Buy these 25 stocks expected to generate the greatest returns on their shareholders’ investments over the next year as market-wide earnings remain low

by
October 6, 2020
in Stock
0
  • As the economic recovery continues, many firms can expect to see return on equity (ROE) growth over the next twelve months.
  • Accordingly, Goldman Sachs’ equity strategists updated their ROE Growth basket to pinpoint companies with the highest profit growth expectations.
  • Visit Business Insider’s homepage for more stories.

Despite soaring stock valuations since March, many companies’ fundamentals have weakened as a result of the economic slowdown from COVID-19.

According to a recent note from Goldman Sachs, this bodes well for future gains across a variety of market sectors, as firms will see a rebound in profit growth as the economic recovery continues into next year.

YOU MAY ALSO LIKE

Trump calls off stimulus package talks, meaning Americans likely won’t receive a $1,200 stimulus checks before the election

Amy Coney Barrett’s Supreme Court nomination ceremony seems to tick all the boxes for a coronavirus superspreading event

More specifically, companies will receive a boost to their return on equity (ROE), which can be used to assess the financial health and performance of management of a company. The indicator is known to be a favorite of legendary investor Warren Buffett.

This aligns with the investment bank’s forecast that downtrodden value stocks, which are strongly correlated with Goldman’s ROE Growth basket of stocks, will see a boost from the recovery.

“We continue to see opportunity for a near-term rotation towards Value. Potential tax reform represents one near-term catalyst. We previously found that Biden’s proposed plan would have the largest negative earnings impact on popular growth sectors Info Tech, Communication Services, and Health Care,” Goldman Sachs Chief US Equity Strategist David Kostin said in the note.

Though he sees a Democratic tax plan as a risk, he said nixed tariffs and fiscal stimulus would likely offset a tax increase, at least at the outset, he said.

Kostin added that a COVID-19 vaccine approval this year would likely drive a rotation away from growth stocks and into value. He further explained how the elections could boost value stocks and the ROE Growth basket by extension:

“Similarly, the Biden campaign has proposed an increase in the capital gains tax. The Info Tech and Consumer Discretionary sectors have been the largest sources of capital gains within the US equity market during the last 3, 5, and 10 years.”

To get ahead of gains over the next 12 months amid the economic recovery, Kostin and his team updated their basket of 50 stocks poised to see ROE growth. Below, in no particular order, are the 25 with expected ROE growth above the basket’s median of 18% over the next 12 months.

ShareTweetPin

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Recent News

Carmakers call for gov’t support on local assembly

Carmakers call for gov’t support on local assembly

January 24, 2021
Paris Men’s Fashion Week: Fashion interpreting our new lives

Paris Men’s Fashion Week: Fashion interpreting our new lives

January 24, 2021
Converge expects 55% household coverage by 2025

Converge expects 55% household coverage by 2025

January 24, 2021

Disclaimer: SimpleMoneyGoals.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting
  • Contact Us

Copyright © 2021 SimpleMoneyGoals. All Rights Reserved.

No Result
View All Result
  • Economy
  • Editor’s Pick
  • Investing
  • Politics
  • Stock
  • Top News