Goldman says buy these beaten-up innovative stocks, with some down 50%

Published Wed, Jan 26 20223:26 PM ESTUpdated Wed, Jan 26 20223:59 PM EST

Stocks have had a rough start to 2022, but attractive buying opportunities are emerging for investors, according to Goldman Sachs. "We believe we are in a correction within a bull market cycle," Peter Oppenheimer, Goldman Sachs' chief global equity strategist, said in a note Wednesday. "In our view we remain in the early part of the Growth phase – returns will likely be low from here, but the bull market should continue (so long as economies grow)." He added that this cycle will be more alpha-driven than the last one, which means it will be driven by asset returns versus volatility relative to the underlying benchmark. The note highlighted several companies that have buy ratings from Goldman Sachs analysts and have fallen between 20% and 50% from their 2021 highs. Each is a member of the firm's "Innovators, Disruptors, Enablers, Adaptors" list. Oppenheimer said "innovators" and "disruptors" are growth-oriented and defensive, while "enablers" are more cyclical. "Adaptors" have more value characteristics. "Our view is that in a more inflationary world, with a broadening of the digital revolution across virtually all industries, coupled with a new focus on de-carbonization and significant capex requirements, investors should be looking for a more eclectic mix of companies." Here are 10 of those names: Roblox and Coinbase have seen some of the biggest drops from their respective 2021 peak performance points. Roblox is down about 47%, and Coinbase has lost about 46%. Coinbase has been sliding along with the broader crypto markets, which have been affected by expectations of interest rate hikes and have been selling-off along with other risk assets. However, Goldman remains buy-rated on Coinbase, it said in a separate note Wednesday. The firm said it sees "multiple sources of optionality over the next year that could diversify the company's revenue streams," including NFTs, derivatives and staking initiatives. SolarEdge , Match Group , Salesforce and Tesla are among the other innovators and disruptors on the list. Cyclical "enabler" names include Starbucks , Lyft and Marvell . Disney is listed and designated as an "adaptor" with more value characteristics. It's down nearly 32% from its peak performance last year.

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Stocks have had a rough start to 2022, but attractive buying opportunities are emerging for investors, according to Goldman Sachs.