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Goldman Sachs Names European Stocks to Buy for Potential Outperformance
Introduction to Goldman's Blessing of the Euro Stocks
Goldman Sachs has identified several European stocks that it believes will outperform the market, presenting investment opportunities that other investors may be overlooking. Will these give the US equities market a run for its money?
Despite the challenges posed by balancing growth and inflation concerns, Goldman's analysts see potential for alpha opportunities in various sectors. These "out-of-consensus buy ideas" have been carefully selected based on factors such as earnings per share projections and the level of buy-ratings from other analysts.
Key Buy Picks
One of Goldman's top picks is Norwegian hydrogen producer Nel. The bank believes that Nel, which has a 12-month price target with an 80% potential upside, is well-positioned to benefit from the clean hydrogen revolution. With a strong growth outlook and a focus on the North American market, Nel is expected to experience significant growth in the coming years.
Another noteworthy choice is wind power company Vestas, which Goldman predicts could see a 48% rise in stock value over the next year. Analyst Ajay Patel identifies Vestas as the best-positioned company in the wind manufacturer industry. Its strong fundamentals, geographical diversification, and scale make Vestas well-equipped to benefit from the increasing demand for wind installation.
Goldman's other buy picks include Dutch bank ABN Amro and Swedish investment firm EQT, both of which have a potential upside of 56%. The bank also recommends considering chemicals company IMCD with a 57% potential upside and drinks company Remy Cointreau with a 54% potential upside. Finnish telecommunications firm Elisa, with a projected 42% rise over the next 12 months, and audit company Bureau Veritas, with a 48% potential upside, complete Goldman's list of European stocks with strong potential.
In conclusion, Goldman Sachs has highlighted several European stocks that it believes possess significant upside potential. These stocks have been carefully selected based on their projected earnings per share and the level of buy-ratings from other analysts. By considering these out-of-consensus buy ideas, investors may find opportunities to outperform the market and achieve attractive returns on their investments.
Goldman Sachs' identification of European stocks with potential for outperformance presents an interesting opportunity for new businesses in related sectors. By analyzing the top buy picks highlighted by Goldman Sachs, new businesses can gain valuable insights into market trends and the sectors poised for growth in the near future.
For instance, the inclusion of hydrogen producer Nel as a top pick indicates the potential for growth in the clean hydrogen revolution. New businesses involved in renewable energy or clean technology could consider capitalizing on this trend by offering innovative solutions or partnering with companies like Nel.
Similarly, Vestas' position as the best-positioned company in the wind manufacturer industry highlights the increasing demand for wind installation. New businesses operating in the wind energy sector could leverage this opportunity by providing services such as wind turbine maintenance, installation, or even developing their own wind power projects.
Goldman Sachs' additional buy picks, such as Dutch bank ABN Amro and chemicals company IMCD, demonstrate the potential in the banking and chemical sectors. New businesses in these industries could find potential partnerships or investment opportunities through these findings.
In conclusion, new businesses can take advantage of Goldman Sachs' research to navigate their entry into the European market. By aligning their strategies with the potential growth sectors identified by Goldman Sachs, they can position themselves to ride the waves of outperformance and capitalize on emerging trends.
Article First Published at: https://www.cnbc.com/2023/07/11/goldman-sachs-stock-picks-out-of-consensus-stocks-to-buy-with-upside.html