At Extreme Investor Network, we bring you the latest insights and recommendations from top analysts and strategists in the investing world. Recently, Goldman Sachs highlighted some key stocks that are poised for significant growth over the next 12 months as the equity market continues to surge towards all-time highs.
Goldman Sachs’ chief U.S. equity strategist, David Kostin, pointed out that expanding margins and asset turnover have driven the S&P 500’s return on equity (ROE) to 20.8%, placing it in the 98th percentile historically. This increase in profitability is expected to continue, with most industries experiencing benefits from margin expansion.
One sector that stood out in terms of ROE growth was consumer discretionary, with a new high of 35%. Stocks like Estée Lauder are expected to see significant ROE growth, with consensus estimates suggesting a 43% increase. GE Aerospace and First Solar are also on Goldman Sachs’ list of stocks with expected ROE growth of 48% and 34%, respectively.
T-Mobile and Blackstone are also worth keeping an eye on, with both companies expected to see significant ROE growth in the near future. T-Mobile, for example, could see a 32% increase in profitability over the next year.
While some sectors may see a decline in ROE, there are still opportunities for growth and profit in the market. Companies like Estée Lauder, GE Aerospace, First Solar, T-Mobile, and Blackstone are positioned well for success in the coming months.
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