Saturday , 13 August 2022

These 5 Stocks Should Deliver Strong Returns Even In These Choppy Market Conditions

Goldman Sachs has upgraded its High Sharpe Ratio basket of stocks – stocks the firm believes can deliver strong returns even in choppy market conditions – and this article further refines Goldman Sachs’ list using the latest ratings from over 4,800 analysts of over 5,000 US-listed stocks from TipRanks. The upshot is you can quickly pinpoint the best ‘Strong Buy’ stocks with big growth potential.

This version of the original article by Harriet Lefton has been edited for length (…) and clarity ([ ]) by to provide a fast & easy read

…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.

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.

This ‘Strong Buy’ stock has 4 recent buy ratings and a $65 average analyst price target (44% upside potential). You can click on the graph below for further insights into the latest ratings:

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2. Delta Airlines (NYSE:DAL)

Warren Buffett’s favorite airline stock Delta Air Lines also boasts 11 consecutive buy ratings from the Street.

  • Top Imperial Capital analyst Michael Derchin believes DAL is on track to up its fiscal 2018 revenue outlook…due to strong pricing power in key domestic hubs; improving business yields; and impressive international results. As for higher oil prices- a key concern for airlines- this hasn’t offset Derchin’s revenue bullishness (hence the $70 price target). From current levels, his price target indicates 37% upside potential.

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3. Halliburton (NYSE:HAL)

HAL is one of the world’s largest providers of products and services to the energy industry.

  • BMO Capital analyst Daniel Boyd calls the stock his ‘favorite large-cap’ in this space. He notes that U.S. pressure pumping is strengthening, while the company’s international outlook may prove too conservative.
  • Indeed, firming oil fundamentals have just prompted Wells Fargo’s Judson Bailey to boost his price target from $58 to $65 (43% upside potential). He is becoming increasingly bullish on the prospect for a multi-year recovery in offshore spending from 2019.

As we can see below, nine analysts have published buy ratings on HAL in the last three months.

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4. Equinix (Nasdaq:EQIX)

Internet-connection specialist Equinix “has virtually become the switch for the Internet/cloud” according to Oppenheimer’s Timothy Horan.

  • Horan has a $525 price target as “EQIX benefits from its unique, highly connected global platform that is attractive to enterprises deploying hybrid cloud strategies.”
  • Credit Suisse’s Sami Badri has reiterated his Buy rating. “We believe the company’s interconnection strategy provides a wide competitive moat making them extremely difficult to compete against and replicate.”

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5. Albemarle (NYSE:ALB)

Albemarle is one of the world’s leading specialty chemical stocks. Its prime product is lithium- a key component of automotive batteries.

  • Oppenheimer analyst Colin Rusch writes,
    • “We believe that ALB deserves a premium multiple given the multi-year growth opportunity we see in lithium.”
    • “ALB’s combination of specialty chemical expertise, security of supply, and resilient customer contracts put the company in a de-risked position to benefit from technology evolution.”

Rusch’s $157 price target indicates huge upside potential of over 65%. Even the Street’s average analyst price target translates into 39% upside.

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