5 Goldman Sachs Conviction List Stocks Have Gigantic Implied Upside
With 2019 well underway, and the first quarter almost over, many investors are resetting for what could be a more volatile rest of the year as the ongoing trade issues could continue to stir the pot. While the rally of the past three months has been 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 is the Goldman Sachs Conviction List of companies. These are the firm’s top picks for high net worth and institutional accounts, spread across 10 sectors. We screened the list looking for the companies that had among largest upside to the Goldman Sachs assigned target prices. We found five that aggressive accounts may want to add to portfolios.
This stock is a Wall Street favorite, and the company 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 Goldman Sachs price objective for the shares is $167, while the Wall Street consensus price target was last seen at $119.87. The stock closed trading on Tuesday at $91.44 a share, so the implied upside to the Goldman Sachs target is right at 75%.
This is a solid value buy in the health care sector. Cigna Corp. (NYSE: CI) is a major health services organization that provides insurance and related products and services in the United States and internationally. All products and services are provided exclusively by or through operating subsidiaries of Cigna, including Cigna Health and Life Insurance Company, Life Insurance Company of North America, Cigna Life Insurance Company of Canada and their affiliates.
The health care giant offers an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits and other related products, including group life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and it has approximately 86 million customer relationships throughout the world.
Goldman Sachs has its price target set at $250, and the posted consensus target is $240.64 a share. The stock closed trading on Tuesday at $172.79, up over 3% on the day. The upside to the firm’s target is just about 50%.