Goldman Sachs released a new report detailing some of what it views as important data points, market observations, and investor recommendations.
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Here are Goldman Sachs's top 13 'rule of ten' growth stocks
Goldman Sachs's new report includes a list of secular growth stocks that trade at "reasonable valuations." The list was compiled using "rule of ten" criteria.
Tesla CEO Elon Musk
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The report includes a list of secular growth stocks that trade at "reasonable valuations."
The list was compiled using Goldman Sachs's "rule of ten" criteria. In order to be included on the list, a stock must have each of the following:
Of the over 750 stocks analyzed, 60 met all three criteria. The top 13 include some of the largest companies by market cap in the world like Netflix, Amazon, and Tesla, along with some lesser known companies as well.
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Here are the top 13 "rule of ten" secular growth stocks trading at reasonable valuations, arranged by Goldman Sachs's growth forecast for 2107.
Tesla, Inc.
Ticker:TSLA
Sector: Consumer Discretionary
Market Cap: $51 billion
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Total Return YTD: 45%
2015: 27%
2016: 73%
2017: 72%
2018: 34%
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Long Term EPS Growth: 35%
EV/Sales: 6.3x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Pure Storage Inc.
Ticker:PSTG
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Sector: Information Technology
Market Cap: $3 billion
Total Return YTD: 11%
2015: 152%
2016: 65%
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2017: 39%
2018: 29%
Long Term EPS Growth: 35%
EV/Sales: 2.7x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
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Zendesk, Inc.
Ticker:ZEN
Sector: Information Technology
Market Cap: $3 billion
Total Return YTD: 29%
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2015: 64%
2016: 49%
2017: 35%
2018: 30%
Long Term EPS Growth: 26%
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EV/Sales: 5.1x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Square Inc.
Ticker:SQ
Sector: Information Technology
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Market Cap: $9 billion
Total Return YTD: 70%
2015: 49%
2016: 35%
2017: 33%
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2018: 31%
Long Term EPS Growth: 85%
EV/Sales: 4.6x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
GrubHub Inc.
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Ticker:GRUB
Sector: Information Technology
Market Cap: $4 billion
Total Return YTD: 15%
2015: 43%
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2016: 36%
2017: 33%
2018: 25%
Long Term EPS Growth: 22%
EV/Sales: 6.3x
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Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Wayfair Inc.
Ticker:W
Sector: Consumer Discretionary
Market Cap: $6 billion
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Total Return YTD: 112%
2015: 71%
2016: 50%
2017: 32%
2018: 27%
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Long Term EPS Growth: 24%
EV/Sales: 1.3x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
RingCentral Inc.
Ticker:RNG
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Sector: Information Technology
Market Cap: $3 billion
Total Return YTD: 73%
2015: 35%
2016: 28%
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2017: 30%
2018: 24%
Long Term EPS Growth: 35%
EV/Sales: 6.3x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
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Netflix Inc.
Ticker:NFLX
Sector: Consumer Discretionary
Market Cap: $63 billion
Total Return YTD: 18%
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2015: 23%
2016: 30%
2017: 30%
2018: 25%
Long Term EPS Growth: 58%
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EV/Sales: 6.8x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Splunk Inc.
Ticker:SPLK
Sector: Information Technology
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Market Cap: $8 billion
Total Return YTD: 10%
2015: 48%
2016: 42%
2017: 27%
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2018: 24%
Long Term EPS Growth: 40%
EV/Sales: 6.7x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Palo Alto Networks
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Ticker:PANW
Sector: Information Technology
Market Cap: $12 billion
Total Return YTD: 6%
2015: 56%
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2016: 36%
2017: 24%
2018: 21%
Long Term EPS Growth: 31%
EV/Sales: 6.9x
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Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
Ultimate Software Group
Ticker:ULTI
Sector: Information Technology
Market Cap: $6 billion
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Total Return YTD: 15%
2015: 22%
2016: 26%
2017: 24%
2018: 18%
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Long Term EPS Growth: 22%
EV/Sales: 7.5x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
salesforce.com, inc.
Ticker:CRM
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Sector: Information Technology
Market Cap: $62 billion
Total Return YTD: 27%
2015: 24%
2016: 26%
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2017: 23%
2018: 20%
Long Term EPS Growth: 28%
EV/Sales: 7.0x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
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Amazon.com Inc.
Ticker:AMZN
Sector: Consumer Discretionary
Market Cap: $461 billion
Total Return YTD: 29%
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2015: 20%
2016: 27%
2017: 22%
2018: 22%
Long Term EPS Growth: 27%
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EV/Sales: 3.2x
Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.
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