Goldman Sachs: 4 Killer Stock Picks For 2019 (Part II)

If you’re planning a holiday right now, chances are high you’ll turn to Booking Holdings (BKNG Research Report). From a small Dutch startup, BKNG is now one of the world’s largest travel e-commerce companies. It holds Booking.com, Priceline.com, Kayak.com, Cheapflights, OpenTable and more.

From a Street perspective, what stands out is a recent upgrade from Wells Fargo’s Robert Coolbrith (Track Record & Ratings). Analysts usually reiterate their stock ratings — so when a stock is upgraded to Buy that definitely tells us something.

Plus Coolbrith simultaneously ramped up his price target from $2,150 to $2,200. From current levels, this means we are now looking at upside of close to 18%.

In this case Coolbrith cites the company’s Q3 performance and Q4 guide as well as management’s 2019 long-term strategy. This breaks down to: 1) platform investment, 2) above-market top-line growth and 3) a close focus on EBITDA dollar growth.

And crucially, even though shares are over $1,800, Coolbrith sees an appealing entry point right now. Shares are currently trading down over 5% in the last three months. “We note that shares remain significantly below historical valuation averages — BKNG’s current NTM EV/EBITDA is 12% below its 3-year median.”

Overall, BKNG stock earns a Moderate Buy analyst consensus. This comes with a $2,242 average price target — which means 23% upside potential lies ahead. 

3. Dollar Tree Inc (DLTR)

When trading is rough, defensive stocks tend to do well. And bargain retail store Dollar Tree (DLTR Research Report) is a perfect example of a defensive stock. Everything in the store sells for $1 or less.

On October 16, the NY Post reported that Carl Icahn is accumulating a stake in Dollar Tree. Apparently, we are looking at a ‘significant’ stake. On the news, DLTR stock jumped 6.8%. Icahn is an activist investor, known for pushing for changes at the company leadership level.

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