Goldman recommends 5 profitable stocks: – Bargains

Markets have fallen heavily this year, but Goldman Sachs chief strategist David Kostin believes stocks are historically still expensive.

However, he managed to highlight some occasions that can give a good return.

– Growth rates may seem high, but they are recent clearance sale it created buying opportunities in select growth stocks, Kostin said in a note on Friday.

The chief strategist generally believes that stocks will have difficulty in the future. He points out that growth stocks are now “trading just above the market capitalization / income levels that have hit their lowest in the past 30 years.”

– Higher interest rates and recession risk may provide short-term headwinds, but the low valuation can offer a deal for investors with a sufficiently long investment horizon, says Kostin.

Kostin used several roadblocks to be left with a five-stock package he recommends. The shares are drawn from the Russell 1000 index and:

• has an estimated growth rate of 10% annualized until 2024
• is expected to have a net margin of 5% in 2023
• now trades less than 5 times the market value of revenues (EV / Sales)
• traded at a discount of 20% compared to the 10-year median value of the market value compared to revenues (EV / Sales)
• companies with weak balance sheets were excluded from the list using Altman’s Z-score

Among the heavyweights we find Meta platforms And Alphabet. Both stocks have been hit hard this year, but could increase in the future according to Kostin.

TripAdvisor, business day And Reservation holding they are also buying opportunities.