Goldman Sachs names 13 global stocks it expects to beat the market

Published Tue, Sep 14 20217:30 PM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Analysts at Goldman Sachs have recommended a raft of global stocks it says are set to beat the market, screening for stocks they describe as high growth, quality or inexpensive. "We feature Buy rated stocks where our analysts expect double-digit topline growth … and are above consensus," Goldman's analysts led by John Sawtell wrote in a research note published Sept. 8. The bank produced several stock screens as part of the research. In a list of stocks under the heading 'High Growth and Where to Find It," the analysts' picks include the following: U.K. insurance company Beazley , which analyst Alan Devlin likes for its cybersecurity focus. "The group has grown its cyber book rapidly over the last few years with +23% yoy [year-over-year] growth in 2020," the research note stated. German e-commerce firm Zalando , for its partnerships with fashion brands that sell on the site, as well as "steady growth" in its discounted clothing business. Atlas Copco , a Swedish manufacturer, for its "high-quality" business, exposure to the semiconductor industry and a "strong financial profile," according to analyst Daniela Costa. Payment platform Adyen , which is on Goldman's conviction list of stocks, for its "new large customer wins" and strong second half results. Goldman's "Quality at a Reasonable Price" list of stocks — which the bank says are trading at a discount to their median valuation over five years — includes: Luxury Swiss conglomerate Richemont , for its jewelry brands, Chinese distribution and digital sales. The stock is also on Goldman's high growth list. Dutch chemicals company Akzo Nobel , which analyst Georgina Iwamoto highlights for its "consistent earnings growth," as well as the fact that it is trading at a discount to U.S. peers. Pharmaceuticals firm Novartis , based in Switzerland, for its "strong" second-quarter results and drugs pipeline. Goldman's list of stocks that look "inexpensive" versus history, where its analysts' earnings expectations are above consensus includes: Spain's Banco Santander , which Goldman said has a 40% to 50% payout ratio in terms of the proportion of earnings it hands back to investors as dividends, as well as an "attractive" valuation. German plastics company Covestro , which is "trading at a deep discount to history and peers," according analyst Georgina Iwamoto. French power company EDF , for its "strong" first-half results, when it beat consensus EBITDA (earnings before interest, taxes, depreciation and amortization) expectations by 12%, according to analyst Ajay Patel. Goldman also screened for names that are likely to provide high dividend yields, with stocks including: Swedish automaker Volvo , which is likely to provide "structurally higher" dividends to investors in future, according to analyst Daniela Costa. Pension firm Legal & General , based in the U.K., for its "attractive" dividend yield and "competitive advantage from its focus on the global retirement market," according to analyst Alan Devlin. Italian bank Intesa Sanpaolo is a pick for analyst Jean-Francois Neuez for its likely "excess capital returns".

Volvo XC90 SUV is on display on day three of the China International Import Expo (CIIE) at the National Exhibition and Convention Center on November 7, 2018 in Shanghai, China.

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Analysts at Goldman Sachs have recommended a raft of global stocks it says are set to beat the market, screening for stocks they describe as high growth, quality or inexpensive.