Every Wall St. firm has a lengthy list of Buy-rated stocks. Analysts in the various sectors the firm covers are asked from time to time to present to the director of research their absolute top stock pick or picks, depending on their universe. These top picks are then usually compiled into what is referred to as the firms’ “Top Conviction” or “Focus” list stocks. We thought it would be interesting to look at The Goldman Sachs Group Inc. (NYSE: GS) Conviction Buy List Americas and find the stocks within that list they project will have the greatest percentage return.
It is important to note that this list is not put out as actionable day trading ideas. Most names involved have a 12-month time frame, although some are listed as a six-month time frame. In addition, names like Apple Inc. (NASDAQ: AAPL) and Qualcomm Inc. (NASDAQ: QCOM) have been on the list for more than two years.
The top five names from Goldman Sachs list for percentage gains based on current pricing are as follows:
- HollyFrontier Corp. (NYSE: HFC) is an independent petroleum refiner and marketer in the United States. It trades today at $44.84, and the 12-month price target is $69, for a gain of 53.88%.
- Tumi Holdings Inc. (NYSE: TUMI) designs, produces and markets travel products, business cases and accessories. It trades today at $19.96, and the six-month price target is $30, for a gain of 50.30%.
- MDC Holdings Inc. (NYSE: MDC) is in the single-family residential construction, financing and title business. It trades today at $37.50, and the 12-month price target is $55, for a gain of 46.66%.
- Activision Blizzard Inc. (NASDAQ: ATVI) is one the of the top creators of video games for console, portable and mobile use. It trades today at $10.96, and the 12-month price target is $16, for a gain of 45.98%.
- Michael Kors Holdings Ltd. (NYSE: KORS) is based in Hong Kong, and it designs, markets, distributes and retails women’s and men’s clothing and accessories. It trades today at $52.24, and the six-month price target is $75, for a gain of 43.56%.
It is always important for investors to remember that Buy-rated stocks can quickly be downgraded to neutral or even sell and removed from Conviction and Focus lists. But these lists are often the blueprint money managers use to design or enhance their portfolios. The last thing large Wall St. firms want to do is see their top picks go down in flames and hurt good clients.