Goldman Sachs: These 3 stocks are ready to grow at least 40%
Is there another bubble at the market’s recent record high? And is the beginning of a recent burst, or just an improvement? Will investors take heart from strong August jobs report? And what about elections – how will the volatile political landscape of the nation affect financial markets? These are some of the questions that investors should answer as the strategists of Goldman Sachs, the investing giants by September, have weighed on market prospects in recent times, and published different opinions. For bulls, Jan Hetzius saw employment numbers as key data points, stating that even though growth has slowed to its breakdown pace immediately after economic re-establishment, it remains strong in the coming months needed. Equality strategist Christian Müller — however, Glissman sees the current high valuation as a ‘speed bump’ and predicts that autumn will improve. “It’s always followed by a bear market. You get a very quick recovery early, and then you get a period where the market really sees what kind of income you’re actually increasing,” Muller -Glissman said. He pointed to increasing volatility as an indicator that stocks have reached an upper limit – but added that macroeconomic data is ‘incredibly strong,’ adding that, with government policy support United, “I would wonder if we go back to a bear market kind of situation.” “So, we have a precarious situation. Markets are growing, but the last few sessions point towards – possibly – developing improvements. Volatility is high, making investors nervous – but government economic regulators are clearly intent on supporting higher valuations. This is a position tailor for caution. Goldman Sachs stock analysts understand this, and generally the firm’s risk-a-risk stance implies that analysts’ outlook is more selective. With all this in mind, we tiprank ‘database to keep an eye on the three stocks marked by Goldman Sachs analysts for their solid growth prospects. We are talking about over 40% upside capacity here. Rackspace Technology (RXT) Texas-based Rackspace has a history of providing software and cloud computing solutions to the business world with cloud-based technologies that are viable in applications. The company’s services include data management and security at any scale, designed to optimize returns. Rackspace operates worldwide, with international offices, in other locations, the UK, Germany, India, Singapore, Hong Kong and Australia. Rackspace started trading publicly in August and the stock has risen 16% since then. The stock slipped slightly after the Q2 result. The company showed a 9% year-over-year revenue gain, and EPS of 21 cents. Investors saw a negative, however, as earnings before that year were low. The company’s guidance predicts full-year EPS of between 75 and 81 cents, and revenue increases between 9% and 10% year-over-year. Goldman Sachs analyst Heath Bellini, rated 5 stars of TipRanks, RXT bought the shares with a price target. $ 38, meaning an impressive 99% upside potential for the stock this year. (To see Bellini’s track record, click here) Supporting his fast stance, Bellini writes, “We believe in a world of cloud complexity and cost control, with Rackspace well-managed IT services Positioned to assist in ending the infection. End Multipurpose Service Management Platform. As customers continue to move workloads to the cloud, we believe they will rely on more than one cloud solution at a given point of time to increase performance, increase flexibility and security. “Street agrees the future of RXT shares is bright, as evidenced by this. Unanimously Strong Buy Analyst consensus on the stock. This is based on 9 recent positive reviews. The stock price is $ 19.27, and the average price of $ 27.44 Target shows 43.5% upside potential for the coming year. (See RXT stock analysis on TipRank) Plains All American Pipeline (PAA) Next on our list is Plains All American, another Texas-based company that Currently in the energy industry. The Texas oil patch has seen a renaissance over the past decade, and has propelled America to become the world’s leading producer. PAA, a major midstream provider, operates pipelines across North America, With all pipelines and storage facilities in the Rockies as well as northern Alberta to Colorado, and Oklahoma and the Gulf Coast. The company’s assets also include crude oil and natural gas liquid storage in Southern California, and natural gas facilities in the Upper Midwest. The PAA has the community in Yorktown, Virginia. There are also re-terminals. PAA earnings were affected in 1H20, with a recent Q2 report hit. The company reported a 61% drop in revenue in the previous quarter, to $ 3.23 billion for the quarter, and EPS of 25 cents, down from 55 cents per share. On two positive notes, management updated the full-year net earnings guidance, raising it by 3%, and setting a July dividend, at 18 cents per ordinary share. While dividends were cut in half as a cash-saving measure against the COVID-19 epidemic earlier this year, the company has not revealed any plans to cut it further. The dividend is currently 10%. Looking at the bullish trend on the PAA is Goldman analyst Michael Lapides. Its $ 11 target on the stock reflects 58% one-year confidence. (To see Lapides’ track record, click here) In his comments, Lapides explained his upbeat approach: “We benefit from the PAA’s Permian footprint, intra-basin and long-term to benefit from the basin’s lower breakeven production costs.” Pipelines continue to expect. Relative to most other US shale plays, a faster recovery in production leads to higher commodity prices and thus throughput on the PAA’s system. In addition, we estimate our S&L EBITDA Let’s see the opposite – with our 2020 forecast of $ 263m for this segment and $ 190m in 2021 – as PAA could benefit from the oil-price estimate, the partnership’s ownership could capture incremental arbitrage opportunities from storage positions Is. Permian, Gulf Coast and a small unregistered portion of its oversized Cushing Storage property. “Overall, Plains All American gets a Moderate Buy consensus rating based on 10 reviews, including 5 Buys, 4 Holds and 1 Sale. is. The average price target at $ 11.33 suggests a 62% increase from the current share price of $ 6.98. (See PAA Stock Analysis on TipRanks) Oak Street Health (OSH) The final stock on today’s list, Oak Street Health, is a medical care provider operating a network of primary care physician clinics under the aegis of Medicare. The network focuses on general medical care of adults. Oak Street Health’s clinics can be found in Pennsylvania, Ohio, Indiana, Illinois and Michigan, as well as Rhode Island, North Carolina, Tennessee, and Texas. The company was founded in 2012, and held its IPO last August. In the time since the IPO, Health Network shares have risen by 15%, taking the company’s market cap to $ 11 billion. Oak Street is doing well financially, and is also expanding. The company announced a collaboration with Walmart on September 1 – Oak Street will open three clinics at Dallas-Fort Worth area Walmart’s Superstars by the end of the year. Goldman Sachs analyst Robert Jones noted the Walmart deal, and says, “The company sees it as a pilot. To assess the effects of embedding its centers within the footprint of a large retailer, which is non-MA. In the long run, OSH can improve the economics of serving patients. OSH may try to link these non-Medicare patients with managed Medicaid or commercial MCOs, which will represent a completely new market for the company. Overall, we think this collaboration could be an interesting upside to an already compelling story. “Jones supported these comments with a $ 66 price target, indicating 43% upside potential Unexpectedly, he buys the stock buy. (To see Jones’ track record, click here) All Street Health has 7 recent reviews, which buy 6 and break 1 hold, allowing the stock to The analyst consensus gives a strong Buy rating. The shares are trading at $ 46.28 and have an average price target of $ 55.50, Which indicates room for ~ 20% growth over the next 12 months. (See OSH Stock Analysis at TipRank) To find good ideas for stock trading at attractive valuations, buy TipRank’s Best Stocks, a newly launched tool that unifies all of TipRank’s equity equities. Disclaimer: The opinions expressed in this article are solely those of select analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.