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

Well, that came around quickly! We are now drawing to the end of 2018. And that can only mean one thing: it’s time to think about 2019. Chances are high that the volatility plaguing the markets in 2018 isn’t going anywhere next year. With that in mind, you need to be extra careful about how you re-balance your portfolio for the new year.

So let’s turn to a report from Goldman Sachs that highlights exactly the kind of stocks you want to be thinking about right now.

These are ‘high quality’ stocks specially selected by the firm. And by ‘high-quality’ Goldman Sachs means stocks that meet the following 5 factors: strong balance sheets, stable sales growth, low deviation in operating income, low stock drawdown risk, and return-on-equity that exceeds peers.

In other words, these stocks are the best-positioned to 1) withstand an economic slowdown; and 2) diminishing equity returns.

On top of that, we used TipRanks‘ stock data to find out what other top analysts have to say on these stocks. That way we can highlight stocks with the most bullish Street consensus from Goldman Sachs’ list.

Let’s take a closer look at these top stock picks for 2019 now. Here we cover the first 4 stock picks, and we will reveal the following 4 stock picks in the next newsletter:

1. Alphabet (GOOGL)

Tech stocks may be going through a rough patch, but here’s one mega-cap Goldman Sachs thinks is still worth buying for 2019.

Trading at ~11x 2019 EV/EBITDA, Alphabet Inc’s (GOOGL Research Report) valuation looks compelling, says Brent Thill (Track Record & Ratings) of Jefferies. He picks GOOGL as his Franchise Pick i.e. a high conviction stock. This is with a juicy $1,450 price target (37% upside potential).

So what justifies this bullish call?

“The Internet Team remains bullish on Alphabet due to continued expected mobile search growth and a positive stance on YouTube” explains Thill.

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Disclaimer: TipRanks is an independent cloud based service that measures and ranks digitally published financial advice. TipRanks' natural language processing (NLP) algorithms aggregate and ...

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