Tags: Coronavirus | barron’s | stocks | goldman | sachs | safety

Barron's: 10 Stocks That Goldman Sachs Says Offer Safety

Barron's: 10 Stocks That Goldman Sachs Says Offer Safety
(Dreamstime.com)
 

By    |   Tuesday, 24 March 2020 09:23 AM

Goldman Sachs are still finding possible safe haven in the storm for battered and bruised investors, stunned by the seemingly endless market plunge.

Goldman experts expect an annualized 24% drop in second-quarter U.S. gross domestic product and a 33% drop in S&P 500 earnings per share in 2020 from last year.

Amid the daily chaos, a team of Goldman strategists screened for stocks that investors should consider owning in such a challenging environment, Barron's explained. They looked for companies with above-average market capitalizations and liquidity, balance-sheet strength, and cheap valuations—after assuming a 20% drop in earnings per share and relative to their 2009 lows.

“Simply put, in the words of Ben Graham, these companies offer investors a ‘Margin of Safety’ from a valuation perspective that is certainly appropriate for the current chaotic investment environment,” Goldman Sachs chief U.S. equity strategist David Kostin wrote.

Here are 10 of the 26 stocks selected by Goldman

  1. Intel INTC
  2. Texas Instruments TXN
  3. Qualcomm QCOM
  4. Gilead Sciences GILD
  5. Bristol-Myers Squibb BMY
  6. Lowe's Companies LOW
  7. Best Buy BBY
  8. Walgreens Boots Alliance WBA
  9. United Parcel Service UPS
  10. Quest Diagnostics DGX

The coronavirus outbreak has forced millions of Americans to hunker down in their homes, with state and local governments closing schools, bars, restaurants and theaters in an escalation of "social distancing" policies aimed at containing the virus, Reuters explained.

President Donald Trump said on Monday he was considering how to reopen the U.S. economy when a 15-day shutdown ends next week, even as the highly contagious coronavirus is spreading and hospitals are bracing for a wave of virus-related deaths.

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Goldman Sachs are still finding possible safe haven in the storm for battered and bruised investors, stunned by the seemingly endless market plunge.
barron’s, stocks, goldman, sachs, safety
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2020-23-24
Tuesday, 24 March 2020 09:23 AM
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