9 Stocks Goldman Sachs Says Will Outperform At The Start Of 2020

Brace for Dow 100,000

Paul Mampilly correctly predicted every bull and bear market over the last two decades. He made millions. His new "Dow 100,000" prediction is his boldest yet. Even more stunning... Paul reveals how you could make millions as it unfolds. [ad]

Read More


Stocks like these 9 have historically outperformed in the new year, according to the firm.

As we head closer to the end of the year, for many investors it’s time to start thinking about what to add to their portfolios next year.

Goldman Sachs (NYSE: GS) is out with a strategy this week that it says has a good track record for beating the market: buying this year’s laggards.

According to Goldman, buying the prior-year’s bottom-third stocks has historically outperformed the S&P 500 in the first quarter of the next year 11 out of the past 17 years with an average 1.4% extra return on the benchmark index.

In 2019, this battered stocks trade has outperformed the S&P 500 by 3.7 percentage points, the firm said. 

Heading into 2020, Goldman recommends buying those laggards that its analysts have out-of-consensus buy ratings on and above-consensus price targets.

Included on the “buy-rated laggards” list are Cree (NASDAQ: CREE), Etsy (NASDAQ: ETSY), GoDaddy (NYSE: GDDY), L Brands (NYSE: LB), Terex (NYSE: TEX), Twilio (NYSE: TWLO), Under Armour (NYSE: UAA), Westlake Chemical (NYSE: WLK), and Yelp (NYSE: YELP). These stocks have returned 2.05%, -13.66%, 3.09%, -29.61%, 2.54%, 9.23%, 6.28%, 2.18%, and -4.49%, respectively, so far in 2019.

Even the best performers in the group, Twilio and Under Armour, have delivered gains far below the S&P 500’s 24% year-to-date return.

Of these, Goldman analysts have buy ratings on Cree, L Brands, Terex, Under Armour, Westlake, and Yelp where other analysts have neutral or sell ratings, and the firm has price targets 5% higher than the Street’s consensus on Etsy, GoDaddy, Twilio, Under Armour, and Westlake.

However, while this “buy-rated laggards” strategy has historically performed well, Goldman cautions against investors just blindly buying the group.

“2019 has seen the strongest YTD absolute performance for laggards in over 5 years,” said Goldman analyst Alex Meintel in a note to clients. “It underscores the importance of a selective approach to playing this year’s group of laggards.”

“While the relative performance of laggards is in line with history, absolute performance is actually positive so far this year (+1% and +6% average and median, respectively), something that has happened just two other times since 2002,” Meintel added.

The Top 5 Tech Stocks Set for Monster Growth in 2020

One of the best ways to double, if not triple your investment in 2020 will be found in tech stocks. Especially those involved with the 5G rollout, where we're still finding undervalued opportunities. In our latest special report, we detail these and other hot tech stocks that should be part of your portfolio right now. [ad]

Read More

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.

[FREE EVENT]: TRADERSPRO PRESENTS - Retire In 18 Months with $2.4 Million

Starting Soon - Join Us Now
X