Goldman and their analysts think every growth stock we tend to track on this board is overvalued. lol. Herein, Goldman lists 39 stocks, which they warn are not headed for a crash, per se, but will underperform.
I don’t think anyone here follows these guys, but when there is a correction, they like to say I told you so. But when THEY fail to outperform, we never hear anything about it…
Goldman Sachs warns of a dangerous bubble in these 39 stocks
Goldman Sachs isn’t yet ready to state the euphoric stock market is one big bubble nearing an epic pop all over the faces of Wall Street bulls, but it is warning investors about some stocks.
“Equity valuations are extremely elevated on an absolute basis. But after taking low interest rates into account, the aggregate index actually trades below average historical valuation,” Goldman’s U.S. equity chief David Kostin says.
Collectively, this list of 39 stocks has gained 6% year-to-date versus a 2% lift on the S&P 500. They sport a trailing-12 month enterprise value-to-sales ratio of 54 times, nearly 15 times the S&P 500 median. On a forward basis, the cohort trades on an enterprise value-to-sales ratio of 29 times, compared to four times for the S&P 500 median.
Kostin stops short of saying these 39 stocks are headed for a crash. Instead, he thinks they could relatively underperform over the next 12 months likely as the financial results of the companies fail to live up to the market hype.
The actual list of 39 stocks is a graphic embedded in the article.
Here is the link:https://finance.yahoo.com/news/goldman-sachs-warns-of-a-dang…