With the S&P 500 not likely to do much the rest of the year, Goldman Sachs says there is still an investment strategy that can outperform.
The firm recommended companies with strong prospects for sales growth next year. David Kostin, Goldman's chief U.S. equity strategist, updated his "high revenue growth" stock basket, which is now based on 2019 Wall Street estimates.
He wrote in a note to clients Friday that with the rate of GDP growth expected to slow next year, "We continue to recommend investors own stocks with the highest forecast sales growth."
Kostin reiterated his year-end price target of 2,850 for the S&P 500, representing just 4.5 percent upside from Friday's close.
He noted the previous version of the "high revenue growth" basket, which was based on 2018 estimates, outperformed the S&P 500 by 8 percentage points over the past 12 months.
Here are seven stocks in the Goldman Sachs "high revenue growth" stock basket with estimated 2019 sales growth of more than 20 percent recommended by Kostin.