Goldman Sachs has a 'World Winners' portfolio of global companies with superior growth prospects

Published Thu, Jun 18 20202:37 PM EDT

(This story is for CNBC PRO subscribers only.) The next bull market for stocks won't be driven by valuation expansion, according to Goldman Sachs, and as the opportunity for alpha to outperform relative to riding the whole market grows, the firm said that stock picking will become more important. The firm noted that while growth over the last decade has been dominated by U.S. tech companies, looking forward investors should take a more global approach as trends like Med-Ttech, Fintech, Ed-tech and Green-tech become more popular. With that in mind, Goldman compiled a list of 50 stocks — all with buy ratings — that are "world winners" and present opportunity for structural growth. Here are some of the names on the list: Amazon , Alphabet and Facebook have all handily outperformed the market this year, with Amazon and Facebook hitting new all-time highs on June 10, and Goldman believes these names continue to be compelling buying opportunities. In terms of other U.S.-based companies, the firm also pointed to growth ahead for Nvidia , PayPal , Eli Lilly , Zoetis and Dollar General , among others. Goldman said that during the next cycle the factors that will differentiate the leaders from the laggards include downward pressure on margins, high debt levels and low nominal growth, as well as exposure to the continued digital revolution. Looking forward, Goldman said that growth companies should continue to prosper in a low-growth environment, and that with rates at historic lows dividend plays should also do well. Additionally, with debt levels rising companies with strong balance sheets will be able to set themselves apart. "It is likely that equities will have less of a tail wind from falling interest rates over the next cycle," the firm said. "At the same time, valuation differences between sectors and styles may become less pronounced. Alpha is likely to become more important in terms of driving returns and investors could benefit from taking more of a global perspective." In Europe, the firm signaled out Novartis , Roche and Ferrari , among others, while bets in the Asia/Pacific region include Alibaba , Tencent and Baidu . - CNBC's Michael Bloom contributed reporting.

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(This story is for CNBC PRO subscribers only.)

The next bull market for stocks won't be driven by valuation expansion, according to Goldman Sachs, and as the opportunity for alpha to outperform relative to riding the whole market grows, the firm said that stock picking will become more important.

The firm noted that while growth over the last decade has been dominated by U.S. tech companies, looking forward investors should take a more global approach as trends like Med-Ttech, Fintech, Ed-tech and Green-tech become more popular.

With that in mind, Goldman compiled a list of 50 stocks — all with buy ratings — that are "world winners" and present opportunity for structural growth.

Here are some of the names on the list: