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Goldman Sachs Says These 3 Stocks Are Ready to Rip Higher
Current market conditions are pushing investors into stocks – and the result is record-high valuations. The S&P 500 has hit a new all-time high, and the NASDAQ, which peaked in February, remains within 3% of its record level and is headed back up. While this is obviously good for investors’ portfolios, there is some concern that we may be looking at a stock bubble. Weighing in from Goldman Sachs, however, strategist Petter Openheimer believes those worries are overblown. He recently led a comprehensive study of asset bubbles over the past three centuries – and comes to the conclusion that stocks, while high, are justifiably so. He notes that interest rates are historically low, keeping down returns in other assets and making stocks the best option for strong returns. In addition, Openheimer notes that some high-profile stock sectors – he uses Big Tech as his example – are bringing in the profits needed to underpin the stock values. “While the technology companies of today have become very large, they’re also extremely profitable. They’ve seen roughly three times the average sales growth of the rest of the market, and roughly twice the average net income growth over the last few years…. being large and seeing strong price appreciation is not the equivalent of being a bubble, I think, because these have actually been very profitable parts of the market,” Openheimer noted. With that in mind, Openheimer’s colleagues among Goldman’s stock analysts have been scouring the market, finding the stocks that are primed to see gains in today’s environment. We’ve opened up the TipRanks database to get the details on three of these Goldman picks. Let’s take a closer look. Oscar Health (OSCR) The first Goldman Sachs pick we’ll look at is Oscar Health, a disruptive company in the health insurance industry. Oscar has a tech focus and provides a new type of health insurance: telemedicine, technological healthcare interfaces, and a transparent claims pricing system all combine to make the famously opaque health insurance industry easier for patients to navigate. The company was founded in 2012, and now serves over 520,000 customers in 18 states. Early in March of this year, Oscar held its IPO. The company offered over 37 million shares at $39 each, $1 above the $36 to $38 initial guidance, and raised over $1.4 billion. Investors will get their first look under the hood of Oscar in the 1Q21 earnings release, which has been scheduled for this coming May 13. Covering the stock for Goldman Sachs, analyst Robert Jones believes OSCR presents a compelling risk reward. “OSCR, in our view, represents an opportunity to buy into a differentiated offering that is levered to attractive secular themes in healthcare (increased consumerization, proliferation of tech-enabled health…
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