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The S&P 500 has rallied more than 35% from its coronavirus bottom despite this week's pullback, stretching the market valuation to unsustainable levels. But Goldman Sachs said some names are still trading at a discount to their historical valuations and set to outperform the boarder market.
"We have seen sizable up-moves in performance laggards," since S&P 500's March low, Deep Mehta, a vice president at Goldman, said in a note. "Against this backdrop, we look to identify names where valuation and stock performance still suggest room for further upside."