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These 13 stocks will see explosive sales growth that will help them crush earnings season, Goldman Sachs says

Apr 13, 2018, 15:38 IST

Reuters

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  • First-quarter earnings season is shaping up to be one of the most hotly anticipated in recent memory as the market seeks a bright spot amid multiple headwinds.
  • While some investors may be focused on bottom-line profits, Goldman Sachs is more interested in stocks generating high sales growth, and has identified 13 S&P 500 companies that fit the bill.

At this point, the upcoming first-quarter earnings season is one of the most hyped in recent memory.

It's supposed to offer a pick-me-up for a market that's navigated one obstacle after the next - whether that's meant a global trade war, regulatory scrutiny in tech, or Trump's recent Russia-centric tweetstorm.

Goldman Sachs has some thoughts on the matter, saying recently that traders should be focused on top-line sales growth, rather than profit numbers. With tax cuts expected to give corporate profits a hyper-boost, it will be more difficult to identify which companies are excelling on a fundamental level, the firm argued.

So with a focus on sales, which companies stand apart? After all, Goldman forecasts revenue for the entire S&P 500 will grow 10% in the first quarter, the fastest pace since 2011.

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Luckily, the firm has made things easy by updating its 50-company basket of stocks expected to grow sales the most in 2018. Spanning 10 of the benchmark's 11 major industries, Goldman calculates that it's index will grow revenue by 16% this year, compared to 6% for the median S&P 500 company.

Without further ado, here are 13 stocks Goldman says will offer the best sales growth this year:

14. Alphabet

Ticker: GOOGL

Industry: Information technology

Market cap: $621 billion

2018 expected sales growth: 21%

13. Red Hat

Ticker: RHT

Industry: Information technology

Market cap: $27 billion

2018 expected sales growth: 21%

11. Adobe Systems

Ticker: ADBE

Industry: Information technology

Market cap: $110 billion

2018 expected sales growth: 23%

10. Digital Realty Trust

Ticker: DLR

Industry: Real estate

Market cap: $22 billion

2018 expected sales growth: 25%

9. Nvidia

Ticker: NVDA

Industry: Information technology

Market cap: $134 billion

2018 expected sales growth: 25%

8. Align Technology

Ticker: ALGN

Industry: Healthcare

Market cap: $20 billion

2018 expected sales growth: 26%

7. Newfield Exploration

Ticker: NFX

Industry: Energy

Market cap: $5 billion

2018 expected sales growth: 28%

6. Concho Resources

Ticker: CXO

Industry: Energy

Market cap: $21 billion

2018 expected sales growth: 30%

5. Amazon

Ticker: AMZN

Industry: Consumer discretionary

Market cap: $703 billion

2018 expected sales growth: 31%

4. Netflix

Ticker: NFLX

Industry: Consumer discretionary

Market cap: $128 billion

2018 expected sales growth: 35%

3. Facebook

Ticker: FB

Industry: Information technology

Market cap: $382 billion

2018 expected sales growth: 36%

2. EQT Corp.

Ticker: EQT

Industry: Energy

Market cap: $13 billion

2018 expected sales growth: 55%

1. FMC Corp.

Ticker: FMC

Industry: Materials

Market cap: $11 billion

2018 expected sales growth: 57%

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