Why Goldman Sachs Thinks Technology Stocks Are In Very Serious Trouble

Print Email

Diamondback Energy

This stock is a top Permian Basin play for more aggressive accounts and is a potential takeover candidate. Diamondback Energy, Inc. (NASDAQ: FANG) is an independent oil and natural gas Company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.

The Wall Street consensus price objective for the company is posted at a stunning 155.45. The stock closed Tuesday at $104.54.

Lululemon Athletica

This is a top yoga apparel retail stock that is continuing to expand their product offerings to a very loyal customer base. Lululemon Athletica Inc. (NASDAQ: LULU) is a Vancouver, Canada-based specialty retailer that sells technical, high quality, and premium-priced athletic apparel through its own stores and websites.

Founded in 1998 in Vancouver, Canada, the brand began as a line of clothes made out of technical fabric. Today, lululemon has over 400 stores in Canada, U.S. Asia, Europe and Australia and is poised for significant expansion.

The consensus price target across Wall Street is posted at $186. The stock closed trading on Tuesday in line with the target at $184.34.

Palo Alto Networks

This company continues to be one of the most dominant players in the cyber security industry. Palo Alto Networks, Inc. (NASDAQ: PANW) is helping to lead a new era in cyber security by protecting thousands of enterprise, government, and service provider networks from cyber threats.

Unlike fragmented legacy products, their security platform safely enables business operations and delivers protection based on what matters most in today’s dynamic computing environments: applications, users, and content.

The consensus price objective is set at $265.88. The shares were last seen Tuesday at $205.35.

Ulta Beauty

If there is any company to own in the retail sector, this may be the one. Ulta Salon Beauty Inc. (NASDAQ: ULTA) is a holding company for the Ulta Beauty group of companies. The Company is a beauty retailer and offers cosmetics, fragrance, skin, hair care products and salon services.

Ulta offers approximately 20,000 products from over 500 beauty brands across all categories, including the Company’s own private label. The Company also offers a full-service salon in every store featuring hair, skin and brow services.

The Wall Street consensus price objective is set at $361.56. The shares closed Tuesday reasonably close to that level of that level at $347.21.

The bottom line for investors is the market is fully valued, we are definitely in the late-cycle economically and for the stock market, and while improving somewhat, the trade and tariff issues are still front and center. Finally, with an election coming next year, you can count on white-hot rhetoric from both political parties.

It makes sense to move from many of the pricey tech stocks to growth stocks like the five we listed, which offer far better valuations.

I'm interested in the Newsletter