The market is no stranger to volatility so far this year. And this week is no different. The catalyst for the market’s latest bout of selling: Trump’s announcement that he intends to limit Chinese investment in “industrially significant technology.”
“Escalating trade tensions and further monetary policy normalization could result in realized volatility remaining meaningfully above last year’s 6.7 through the end of 2018,” comments Goldman Sachs’ David Kostin. “This raises a key question for investors: which sectors and stocks are likely to produce the highest risk-adjusted returns in a market with below-average returns and elevated volatility?”
Luckily Goldman Sachs has now upgraded its High Sharpe Ratio basket of stocks. These are stocks the firm believes can deliver strong returns even in choppy market conditions.
Find ‘Strong Buy’ Stocks
Here we use TipRanks data to further refine Goldman Sach’s list. TipRanks tracks the latest ratings from over 4,800 analysts on over 5,000 US-listed stocks. The upshot is you can quickly pinpoint the best ‘Strong Buy’ stocks with big growth potential. As you will see below, all of the stocks have 100% Street support based on ratings from the last three months.
Let’s take a closer look now:
1. BorgWarner (NYSE:BWA)
Auto-parts marker BorgWarner is buzzing right now. The stock has just been upgraded by Goldman Sachs from Hold to Buy. And both Robert W Baird’s David Leiker and Oppenheimer’s Noah Kaye single out BWA as a ‘Top Stock Pick.’
Kaye writes: “We view BorgWarner as a differentiated technology solutions provider for efficient vehicle propulsion. As the global auto industry evolves to meet increasingly stringent emissions regulations, we expect BorgWarner to benefit.” Meanwhile Leiker sees shares spiking 69% from current levels. He tells investors not to let the CEO transition faze them.
