Goldman Sachs Group believes that while the S & P 500 is still expensive relative to its historical level and interest rate factors, there will still be attractive opportunities for the US stock market. Goldman Sachs Group strategist, including David J. Kostin, said the risk and return of the S & P 500 index was still unattractive, but "valuations in the stock market vary widely".There are opportunities for stocks related to the rapid generation of cash flow, value, earnings growth, cyclical and small-cap stocks.
Goldman Sachs Group highlighted some bargain-hunting trades in his report, when the benchmark S & P closing price was below its basic year-end target of 3600 points. But the index is still expensive relative to historical and current interest rates.
It is understood that people are worried that the Fed's tightening policy will push the US economy into recession.$S&P 500 index (.SPX.US)$It has fallen 25% this year, but even so, the index is still 12% higher than Goldman Sachs Group's hard landing target of 3150.
In terms of stock selection, Goldman Sachs Group favors retail store operators among companies that generate cash flow faster than other companies.$Macy's (M.US)$And automakers.$General Motors (GM.US)$. In addition, growth stocks that Goldman Sachs Group thinks are worth buying include biotech companies.$Exelixis (EXEL.US)$和$Meta Platforms (META.US)$。
According to Goldman Sachs Group's analysis, cyclical stocks that the bank considers cheap even in a recession include builders.$PulteGroup (PHM.US)$和$Toll Brothers (TOL.US)$。
Edit / phoebe