Here are stocks that Goldman Sachs loves, but the rest of the Street hates

Published Tue, Mar 16 202110:23 AM EDTUpdated Tue, Mar 16 202110:38 AM EDT

Most analysts on Wall Street aren't telling clients to buy shares of electric car maker Tesla , homebuilder KB Home or hotel operator Hyatt . Goldman Sachs, however, loves them. The brokerage on Tuesday published its "out-of-consensus" stock picks, or those names that Goldman likes far more than the average Wall Street shop does. Deep Mehta, a vice president at Goldman, said he and his team looked for equities that may be solid picks based on their research but unloved by most of Wall Street. These stocks are "buy-rated names where our analysts are out-of-consensus, and the majority of the Street is Neutral or Sell rated," Mehta explained. "These names appear underappreciated by the market and could generate alpha for investors with a contrarian view." Specifically, Goldman examined its buy-rated stocks with 10% or more upside to its price target and compared them to analyst ratings at other sell-side brokerages across Wall Street. It then narrowed down the list of stocks it views favorably to those names that other firms do not view as attractive with less than half of all sell-side analysts recommending clients buy. The analysis generated names including Tesla, clean energy company SunPower and even Covid-19 vaccine maker Moderna . Goldman's list spanned a variety of investment styles and included trades popular with investors betting on a robust economic recovery as well as some popular, tech-related trades. Hyatt Hotels, for example, is widely seen as a key reopening trade as more consumers start to receive vaccines and plan vacations. For much of the past year, Hyatt has traded in the same direction as airline stocks and cruise operators. In more recent months, investors have snapped up Hyatt as an accelerating number of vaccines were deployed and economists bet on a stronger summertime travel. That stock is up 43% over the last six months and 20.5% over the last three. The recommendations from Goldman may also please Tesla investors, who have seen shares gyrate in recent weeks as popular-but-pricey tech names came under pressure as bets on an economic rebound sparked a rise in interest rates and a pivot into cheaper cyclical stocks. Rising rates can threaten the relative appeal of growth stocks like Tesla and compress stock valuations by reducing the value of future cash flows. Though shares of Elon Musk's are up 3.7% over the last week, they are still down more than 12% over the past month as the 10-year Treasury rate climbed to around 1.6%. — CNBC's Michael Bloom contributed reporting.

Elon Musk, co-founder and chief executive officer of Tesla Motors.

Yuriko Nakao | Bloomberg | Getty Images

Most analysts on Wall Street aren't telling clients to buy shares of electric car maker Tesla, homebuilder KB Home or hotel operator Hyatt.

Goldman Sachs, however, loves them.

The brokerage on Tuesday published its "out-of-consensus" stock picks, or those names that Goldman likes far more than the average Wall Street shop does.