5 Stocks on Goldman Sachs Conviction List With Massive Upside Potential
With 2019 off and running and the first quarter now almost half over, many investors are resetting for what could be a more volatile remainder of the year as the ongoing trade and political issues could continue to stir the pot some. While the rally of the past six weeks has been very positive, it makes sense for investors to find the best possible stock ideas from the top analysts and firms.
One of Wall Street’s most respected lists of stocks to buy is the Goldman Sachs Conviction List of companies. These are the firm’s top picks for high net worth and institutional accounts spread across all S&P 500 sectors. We screened the list looking for the companies with the largest upside to the Goldman Sachs assigned target prices. We found five that aggressive accounts may want to add to portfolios.
This company has a big west coast exposure and continues to rank high on Wall Street. Alaska Air Group Inc. (NYSE: ALK) is the parent company of Alaska Airlines, and it reported impressive traffic data buoyed by strong demand. The company serves more than 100 cities through an expansive network in Alaska, the Lower 48 states, Hawaii, Canada and Mexico. Despite recent challenges by other carriers for superiority in the Northwest, the company has strong customer loyalty, which has contributed to outstanding earnings and revenue growth.
Last year the company began nonstop service between Mineta San Jose International Airport and John F. Kennedy International Airport in New York City. With the addition of the new service, Alaska now operates 15 flights a day to JFK from six west coast gateways, including Las Vegas; Los Angeles; Portland, Oregon; San Francisco; San Jose; and Seattle.
The Goldman Sachs price target for the shares is $90, while the Wall Street consensus target is $81.50. The shares closed Tuesday’s trading at $64.74. Hitting the Goldman Sachs target would be almost a 40% gain for investors.
This is a Wall Street favorite, and it posted solid earnings last year. BioMarin Pharmaceuticals Inc. (NASDAQ: BMRN) develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. Its product portfolio comprises five approved products and multiple clinical and preclinical product candidates.
Over the past decade, BioMarin has become one of the top orphan drug companies, and it looks poised to stay there. Roche recently has been mentioned as a company that could be looking at BioMarin. Roche is heavily focused on oncology drugs and invests heavily in early-stage molecules.
The fourth quarter historically has been a strong quarter for BioMarin. Most analysts that cover the company would not be surprised if fourth-quarter results beat consensus again. Three-year durability data from Valrox is expected midyear, which many believe is the most important data readout in 2019 for BioMarin, given the uncertainty.
Goldman Sachs has a price objective of $167, while the posted consensus price objective is $120.59. The stock closed trading at $97.58 on Tuesday. The upside to the Goldman Sachs target is right at 70%.