The markets are currently in a narrow range. But even the current stock market environment offers potential for investors: Goldman Sachs has identified seven stocks that continue to rise even in shallow markets.
The US S & P 500 index is showing a pronounced sideways trend in the year to date. Since January, the stock market barometer has risen by a moderate 1.7 percent. And that’s not going to change much by the end of the year, experts at Wall Street Goldman Sachs believe, confirming their index target by the end of the year at 2,850 points. As a result, the S & P 500 would still have an upside potential of around four percent this year – relatively little, considering that the index had gained just under 19 percent in 2017.
A difficult stock market environment for investors, because cheap stocks are currently in short supply, make real growth stars is increasingly difficult. However, the analyst team at Goldman Sachs is confident that the current market situation also enables investment strategies that can be used to outperform.
Shares with strong sales prospects
David Kostin, the lead equity house strategist at the finance house, points in particular to companies with strong growth prospects. A note to clients said last week, “We continue to recommend that investors buy stocks with the highest forecast sales growth.” Kostin has recently updated its list of share certificates – and it does include well-known companies, which at first glance appear anything but cheap.
These seven stocks have made it onto the Goldman Sachs Referral List – all can expect to see revenue growth of more than 20 percent in 2019.
1. Align Technology
The shares of Align Technology have put on an impressive performance in the year to date. Just under 29 percent has been up since January. Only at the start of the week, the share certificate, which has doubled within a year, at 296.20 US dollars has marked a new all-time high. The medical technician from the USA is market leader for transparent splints in the dental field. Analysts see growth potential of 22 percent for 2019.
The Amazon share is not a bargain: Investors currently have to pay $ 1,600 for a share of the online giant. But the stock was not cheap at the beginning of the year – and yet investors have since January with their Amazon investment a plus of 36 percent retracted. The business outlook is good, with Amazon Web Services in particular expected to continue supporting the company’s growth. Forecasts for revenue growth until 2019: 22 percent.
The share of Autodesk has also left its mark on investors in the deposits this year: it has risen by 27 percent since the beginning of the year. Only in March, the stock at $ 141.24 an all-time high – currently the share price is still slightly lower. The software group, which specializes in 3D design and offers software solutions in this area, has developed a dominant position in the engineering sector. Even though revenues have recently declined, the medium-term outlook is good. Experts expect growth potential of 27 percent by 2019.
Facebook is currently experiencing one of the toughest years in its history. Cambridge Analytica’s data scandal severely hit the stock in March and April. However, the scandal could not leave any lasting traces – the Facebook share is currently back to pre-crisis levels. The interim slump has seen performance over the course of the year: With a price increase of only around 5 percent since January, the Facebook stock has performed rather poorly compared with other tech giants. But the growth prospects are good: By 2019, sales are likely to rise by 27 percent. Then maybe the stock will catch up again.
The pioneer among the streaming providers, stock market favorite Netflix, has also made it to the Goldman Sachs recommendation list. No wonder, since the title has improved by 67 percent since January and is currently not far from its record highs. Although some analysts are becoming more skeptical about Netflix’s growing competition and high costs, Goldman Sachs still sees growth potential for 2019 of a whopping 25 percent.
The little known in this country industry group Pentair is also on the list of stocks with the best growth prospects again. And yet, everything else was going well for investors in 2018: the Pentair share has fallen by around five percent since the start of the year. That Goldman Sachs still holds the share in the basket for growth stocks, should be due to the sales outlook for 2019: Experts expect an increase of 22 percent for the proceeds of the provider of water technology solutions.
7. Vertex Pharmaceuticals
The share price of Vertex Pharmaceuticals was also better off – but since January, only a moderate five percent upwards. Over the past 12 months, the stock has gained more than 26 percent. But Goldman Sachs believes in the business development of the global biotech company: The forecast for sales growth is 22 percent.