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Goldman Sachs Says These 3 Stocks Could Surge Over 30% From Current Levels
After a true annus horribilus, we’re all ready for better times. The US equity strategy team at Goldman Sachs, led by David Kostin, sees those better time ahead, and in the near-term. The team is predicting a 25% gain for the S&P 500 within the next 24 months – or to put it in absolute numbers, they believe the index will hit 4,600 by December 2022. Kostin lays out four clear reasons for believing that we’re at the start of another prolonged bull run. First, he notes the generally improving economic conditions; second, he points out corporate earnings growth; third, are the historically low interest rates, as the Fed sticks to its near-zero rate policy; and finally, there’s TINA, or ‘there is no alternative.’ Stocks are entering a virtuous circle, Kostin believes, as they offer the highest returns available for now.In a recent interview, Goldman’s chief equity strategist said of these points, “That’s the story, it’s about an economy that’s getting better, coming off the pandemic, and generally getting better, and the Fed on hold. All of that is to the positive and I think the market is recognizing that and will continue to do that.”Goldman Sachs analysts are following Kostin’s lead, and pointing out three stocks that they think will gain from the general market rise. We ran the trio through TipRanks database to see what other Wall Street’s analysts have to say about them.Lordstown Motors (RIDE)The first Goldman’s choice is Lordstown Motors. This Ohio-based company, closely linked to Big 3 standard General Motors, is an electric vehicle maker. The company works out of the GM’s old Lordstown, Ohio assembly plant, which it purchased last year. Lordstown boasts over 6.2 million square feet of production floor space, and a capacity of 600,000 vehicles per year. The company’s flagship vehicle is the all-wheel drive Endurance pickup truck. The vehicle is based on a unique design, using individual electric motors at each wheel hub. The Endurance is scheduled for delivery in the fall of 2021.Founded in 2018, Lordstown Motors went public earlier this year through a merger with a ‘blank check’ company. These transactions are designed to provide capital for companies looking to enter the public market. As part of preparations for releasing its Endurance truck, Lordstown has entered into an agreement with Camping World Holdings (CWH), the RV maker. Camping World will train its mechanics on the new truck, and provide garage floor space for Lordstown’s customers. The agreement includes potentials for expansion, such as sharing sales, space and providing electric drive systems for RVs.Covering this stock for Goldman Sachs, analyst Mark Delaney writes, “We believe this collaboration is a first step to address Lordstown’s service footprint and…
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