4 min read
699 words
0 views
Goldman Sachs chief U.S. strategist David Kostin published a list of secular growth stocks – companies with proven growth no matter what the economic conditions – that is ideally suited to an investing environment that has, all of the sudden, become decidedly uncertain.
To develop the list, Mr. Kostin screened the Goldman Sachs equity universe using his “Rule of 10” to find companies with long-term expected earnings growth of more than 10 per cent, sales growth in 2015 and 2016 above 10 per cent, and with earnings forecasts for this year and 2018 above 10 per cent.
Secular growth stocks: Goldman’s Top 25
| Company | Symbol | Sector/Industry | EV/Sales | 3Y Avg Ann EPS Growth | 3Y Avg Ann Rev Growth | 3Y Avg Ann Stock Return | P/E Ratio TTM | P/E Ratio Fwd |
|---|---|---|---|---|---|---|---|---|
| Sprouts Farmers Market Inc | SFM-Q | Consumer, Non-cycl | 0.82 | 9.08 | 26.21 | -19.96 | 21.58 | 21.00 |
| INC Research Holdings Inc-A | INCR-Q | Consumer, Non-cycl | 1.73 | N/A | 17.24 | N/A | 34.91 | 17.97 |
| Square Inc – A | SQ-N | Consumer, Non-cycl | 2.20 | -20.67 | 91.49 | N/A | N/A | 112.98 |
| Envision Healthcare Corp | EVHC-N | Consumer, Non-cycl | 2.35 | 41.39 | 42.07 | 16.12 | 21.41 | 14.25 |
| Pandora Media Inc | P-N | Communications | 2.66 | -137.65 | 67.76 | -27.17 | N/A | N/A |
| Pure Storage Inc – Class A | PSTG-N | Technology | 2.99 | N/A | N/A | N/A | N/A | N/A |
| Amazon.com Inc | AMZN-Q | Communications | 3.11 | N/A | 20.55 | 26.61 | 185.50 | 66.75 |
| Ulta Salon Cosmetics & Frag | ULTA-Q | Consumer, Cyclical | 3.27 | 22.43 | 20.91 | 46.17 | 43.83 | 36.02 |
| Yelp Inc | YELP-N | Communications | 4.22 | N/A | 59.00 | -19.68 | N/A | 41.42 |
| PayPal Holdings Inc | PYPL-Q | Consumer, Non-cycl | 4.25 | N/A | 17.78 | N/A | 36.62 | 25.12 |
| Fortinet Inc | FTNT-Q | Technology | 4.45 | -48.94 | 23.84 | 14.60 | 425.24 | 42.95 |
| Athenahealth Inc | ATHN-Q | Technology | 4.88 | N/A | 30.09 | -4.65 | 223.04 | 56.64 |
| Antero Resources Corp | AR-N | Energy | 4.96 | N/A | 89.73 | -24.10 | 53.16 | 65.78 |
| Alphabet Inc-Cl A | GOOGL-Q | Communications | 5.49 | 12.19 | 14.38 | 12.81 | 30.05 | 21.16 |
| Twitter Inc | TWTR-N | Communications | 5.72 | -103.97 | 92.96 | -35.81 | N/A | 30.34 |
| Nutanix Inc – A | NTNX-Q | Technology | 5.99 | -42.50 | 163.52 | N/A | N/A | N/A |
| Cotiviti Holdings Inc | COTV-N | Technology | 6.18 | N/A | 71.25 | N/A | 93.04 | 24.13 |
| Cornerstone OnDemand Inc | CSOD-Q | Technology | 6.29 | -36.45 | 42.75 | -10.12 | N/A | 301.54 |
| Netflix Inc | NFLX-Q | Communications | 6.35 | 42.50 | 26.42 | 35.79 | 331.24 | 97.77 |
| SalesForce.com Inc | CRM-N | Technology | 6.63 | 31.46 | 29.85 | 8.35 | N/A | 64.21 |
| Align Technology Inc | ALGN-Q | Consumer, Non-cycl | 6.70 | 45.10 | 14.75 | 13.09 | 39.19 | 32.70 |
| GrubHub Inc | GRUB-N | Communications | 7.41 | 43.47 | 64.76 | N/A | 71.13 | 37.15 |
| Ultimate Software Group Inc | ULTI-Q | Technology | 7.85 | 29.67 | 22.99 | 7.52 | 318.55 | 52.00 |
| Splunk Inc | SPLK-Q | Technology | 8.26 | -75.31 | 49.79 | -13.19 | N/A | 122.44 |
| Acacia Communications Inc | ACIA-Q | Communications | 8.69 | N/A | N/A | N/A | N/A | 17.65 |
Source: Goldman Sachs and Bloomberg
Follow Scott Barlow on Twitter: @SBarlow_ROB
- Amazon.com Inc
$813.84+5.51(+0.68%)
- Pandora Media Inc
$13.49+0.24(+1.81%)
- Pure Storage Inc
$12.01-0.01(-0.08%)
- Square Inc
$14.70-0.19(-1.29%)
- Envision Healthcare Corp
$67.14-0.05(-0.07%)
- Sprouts Farmers Market Inc
$19.05-0.46(-2.36%)
- INC Research Holdings Inc
$50.38+0.27(+0.55%)
- Netflix Inc
$138.18-0.42(-0.30%)
- Twitter Inc
$16.62+0.04(+0.24%)
- PayPal Holdings Inc
$41.62-0.07(-0.17%)
- Alphabet Inc
$839.31+11.14(+1.35%)
- Fortinet Inc
$32.01-0.31(-0.96%)
- Antero Resources Corp
$25.48-0.18(-0.70%)
- Salesforce.com Inc
$76.19+0.16(+0.21%)
- Yelp Inc
$41.49+0.43(+1.05%)
- Ulta Salon Cosmetics and Fragrance Inc
$265.35-0.87(-0.33%)
- Cornerstone OnDemand Inc
$40.83-0.12(-0.29%)
- Cotiviti Holdings Inc
$33.52-0.24(-0.71%)
- athenahealth Inc
$121.93+0.10(+0.08%)
- Nutanix Inc
$29.78+1.43(+5.04%)
- Acacia Communications Inc
$63.07+0.60(+0.97%)
- Align Technology Inc
$92.15+0.45(+0.49%)
- Ultimate Software Group Inc
$195.61+0.98(+0.50%)
- GrubHub Inc
$39.51+0.11(+0.28%)
- Splunk Inc
$53.51-0.27(-0.50%)
- Updated January 23 1:49 PM EST. Delayed by at least 15 minutes.
More Related to this Story
Topics
powered by sue.ng a legal search engine