3 stocks Goldman Sachs recommends buying
We have crossed the halfway point of the year and the stock market is still breaking new records. With inflation falling for the first time in four years, the way is clear for a possible earlier-than-expected cut in interest rates, sparking investor interest. However, market leaders might not be the ones to see us through the first half of 2024. The rise of technology stocks could take a back seat.
An overview of the current market situation
The technology sector, which dominated the market, is now experiencing a weakening. The iShares Semiconductor ETF has seen a decline of nearly 9% since reaching a record high last week. Goldman Sachs expects the market to start moving away from technology stocks. Back in April, the investment bank warned that it was time to look elsewhere for investment opportunities. Although the sector has been resilient for months, now may be the time to follow analysts' advice.
Goldman Sachs investment tips
Goldman Sachs has picked three stocks it has assigned a "buy" rating to, with target prices suggesting double-digit returns over the next year. Which 3 stocks are they?
Exact Sciences $EXAS
Exact Sciences (NASDAQ), a company focused on cancer testing and diagnostics, is forecast to grow 50% over the next year. Goldman Sachs cut its price target to $75 per share from $88, but reiterated its "buy" rating. The company's stock is down 34% since the beginning of the year on concerns about competitive testing.
Exact Sciences is a leader in colon cancer testing. Although colonoscopy remains the gold standard for accuracy, the invasive nature of the test makes it a less than optimal choice. Exact Sciences' tests represent a second-best option. Although Guardant Health is developing a blood test for colon cancer that has been recommended for approval by an FDA advisory committee, so-called bench tests are considered more accurate, especially for early screening.
Amazon $AMZN
Amazon (NASDAQ) recently wrapped up its latest Prime Day event, which the company says generated the biggest sales in the history of such events. Analysts predicted sales of approximately $14 billion during the two-day event. Goldman Sachs raised its target price to $250 and reiterated a "buy" rating.
Amazon's performance underscores the health of consumers, as second-quarter results show. Despite some weaker markets, e-commerce remains resilient. Amazon is also reporting higher retail margins and rising operating income. In addition to continued growth in cloud services, Goldman Sachs sees Amazon as a solid growth stock.
Snowflake $SNOW
Analyst Kash Rangan recently reiterated a "buy" rating on data warehouse provider Snowflake (NYSE) with a $220 per share price target. The stock was added to the list with high conviction to buy.
Unfortunately, before the revelation of the massive hack of AT&T data hosted on Snowflake's servers. The hack affected virtually all AT&T customers, raising concerns about data security. As a result, Snowflake shares have fallen 30% this year as investors expressed concerns about competitive pressures.
Yet Wall Street still maintains an optimistic outlook for Snowflake stock. Analysts predict an annual target price of $197 per share.
Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.
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