Stocks are struggling this year, but that means certain names are cheap relative to their financial value, according to Goldman Sachs. "Recent market volatility has created buying opportunities in names where share price performance has dislocated from fundamentals," Goldman's Deep Mehta said in a note Friday. The S & P 500 is down more than 7% in 2022 as investors digest the Federal Reserve's interest rate hike trajectory and Russia's invasion of Ukraine . Across Goldman's U.S. coverage, the median stock is also down around 7% year to date, according to Mehta. To find these dislocated opportunities, Goldman screened for buy-rated stocks that are down more than the median stock this year, but have positive earnings momentum. The firm used consensus 2022 estimate revisions to measure earnings momentum. These stocks also have above-consensus estimates from Goldman analysts, "suggesting beat-and-raise potential ahead." Take a look at five names on Goldman's list. Moderna is one name Goldman highlighted. The firm said the pharmaceutical company has cash on hand to further its research and development priorities. "Look to fundamentals, in addition to Covid-19, as the focus shifts towards execution on the clinical-stage programs in seasonal flu, oncology and rare diseases," Goldman analyst Salveen Richter said. Goldman also likes Blackstone for its fee-related earnings revenue growth. "We a see material step-up in earnings power ahead," analyst Alex Blostein said. Electronics maker Jabil also made the list. Goldman praised Jabil for the execution of its operations amid a difficult supply chain environment. "Jabil is well positioned around key secular trends such as in electric vehicles, health care, and 5G/cloud," Goldman's Mark Delaney said. Semi stocks Marvell Technology and Micron Technology were also among Goldman's picks. —CNBC's Michael Bloom contributed reporting.
Moderna's sign is seen outside of their headquarters in Cambridge, MA on March 11, 2021.
Boston Globe | Getty Images
Stocks are struggling this year, but that means certain names are cheap relative to their financial value, according to Goldman Sachs.
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