GOLDMAN SACHS: These 13 US stocks are set to soar

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  • The past few months had been tough for traders, with the S&P 500 tumbling 14% in the fourth quarter.
  • While firms across Wall Street are warning of evaporating stock-market returns as soon as this year, Goldman Sachs is here to bring some reassurance.
  • Goldman has a strategy tailor-made for such conditions: Buy high growth potential companies early and often.
  • The firm highlighted a list of stocks it believes are most undervalued, and will likely rocket higher because of solid earnings.

The past few months have been extremely challenging for investors. After returning 11% through the first 3 quarters of 2018, the benchmark S&P 500 tumbled 14% during the last three months, dropping its annual total return to a negative 4%.

While firms across Wall Street are warning of an impending economic slowdown and evaporating stock market returns as soon as this year, Goldman Sachs is here to bring some reassurance.

The bank has a strategy tailor-made for such conditions: Buy high growth potential companies early and often.

It published a list of stocks that it believes are most undervalued, and will likely rocket higher because of solid earnings.

Here are the 13 companies Goldman says could deliver the biggest return going forward, in ascending order of their potential upsides (comparing Goldman’s price target to where shares were trading as of December 31):


American Airlines

MI

Ticker:
AAL

Sector: Industrial

2018 performance: -40%

Price as of December 31: $US32.11

Upside to target: 65.1%

Source: Goldman Sachs


Albemarle

MI

Ticker:
ALB

Sector: Material

2018 performance: -41%

Price as of December 31: $US77.07

Upside to target: 68.7%

Source: Goldman Sachs


Aptiv

MI

Ticker:
APTV

Sector: Auto

2018 performance: -30%

Price as of December 31: $US61.57

Upside to target: 68.9%

Source: Goldman Sachs


Tiffany & Co.

MI

Ticker:
TIF

Sector: Specialty Retail

2018 performance: -23%

Price as of December 31: $US80.51

Upside to target: 68.9%

Source: Goldman Sachs


Noble Energy

MI

Ticker:
NBL

Sector: Energy

2018 performance: -35%

Price as of December 31: $US18.76

Upside to target: 69.2%

Source: Goldman Sachs


Alliance Data Systems

MI

Ticker:
ADS

Sector: Industrial

2018 performance: -40%

Price as of December 31: $US150.08

Upside to target: 69.9%

Source: Goldman Sachs


Tapestry

coach

Ticker: TPR

Sector: Specialty Retail

2018 performance: -42%

Price as of December 31: $US33.75

Upside to target: 71.9%

Source: Goldman Sachs


Freeport-McMoRan

MI

Ticker:
FCX

Sector: Material

2018 performance: -45%

Price as of December 31: $US10.31

Upside to target: 74.6%

Source: Goldman Sachs


Netflix

MI

Ticker:
NFLX

Sector: Technology

2018 performance: +44%

Price as of December 31: $US267.66

Upside to target: 79.3%

Source: Goldman Sachs


Alexion Pharmaceuticals

MI

Ticker:
ALXN

Sector: Healthcare

2018 performance: -13%

Price as of December 31: $US97.36

Upside to target: 79.7%

Source: Goldman Sachs


Nektar Therapeutics

MI

Ticker:
NKTR

Sector: Healthcare

2018 performance: -42%

Price as of December 31: $US32.87

Upside to target: 88.6%

Source: Goldman Sachs


DXC Technology

MI

Ticker:
DXC

Sector: Technology

2018 performance: -33%

Price as of December 31: $US53.17

Upside to target: 99.4%

Source: Goldman Sachs


PG&E

MI

Ticker:
PCG

Sector: Utility

2018 performance: -44%

Price as of December 31: $US23.75

Upside to target: 110.5%

Source: Goldman Sachs


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