Goldman Sachs recommends these growth stocks

According to Goldman Sachs, interest rates seem to have reached a peak, and as a result growth stocks should be looked at. This is what CNBC wrote.

“With interest rates appearing to have peaked, ‘pure growth’ provides exposure to interest rate changes, while ‘stable growth’ is more defensive,” the investment bank wrote in a statement in December.

Last week, the US central bank (the Federal Reserve) indicated that there will be three interest rate cuts in 2024, ending a period of 11 interest rate increases. Jumps in interest rates have not usually been favorable for growth stocks.

Goldman conducted two Offers For the so-called “pure growth” and “stable growth” categories.

“Pure growth”

Goldman Sachs screened companies in the Stoxx 600 index, excluding the financial sector, using several criteria, including the following:

Highest CAGR in business volume for the period 2023-2025. Excluding companies whose sales growth is less than the bottom quartile of the Stoxx index over the past three years. Technology companies make up 20 percent of stocks, healthcare 16 percent, and the industrial and services sector 14 percent.

“stable growth”

Goldman Sachs screened companies in the Stoxx 600 index, excluding the financial sector. They looked for companies that had a standard deviation of sales growth below the 50th percentile, and were likely to have sales growth above the 30th percentile over a 20-year period (from 2006 to 2025).

The industrial and services sector makes up 20 percent of the stock, while 17 percent comes from healthcare and 11 percent from technology.

These stocks are found in Goldman's portfolio.