Investing

5 Goldman Sachs Conviction List Stocks With Massive Upside Potential for 2020

Lee Jackson

With 2020 now rolling, and the first quarter in full swing, many investors are resetting for what could be a more volatile rest of the year as the ongoing trade issues and geopolitical instability in the Middle East could continue to stir the pot. While the rally of the past three months has been very positive, it still makes sense for investors to find the best possible stock ideas from the top analysts and firms.

One of Wall Street’s most respected list of stocks is the Goldman Sachs Conviction List. These are the firm’s top picks for high net worth and institutional accounts, and they are spread across 10 sectors. We screened the list looking for the companies that had the largest upside to the Goldman Sachs assigned target prices. We found five that more aggressive growth accounts may want to add to portfolios.

BioMarin Pharmaceuticals

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 $159. The Wall Street consensus target price is $115.23. The stocks closed trading on Thursday at $89.58. The upside to the Goldman Sachs target is right at a stunning 77%.

Cheniere Energy

This top liquid natural gas play has made a nice move off the December lows. Cheniere Energy Inc. (NYSE: LNG) is an energy company primarily engaged in liquefied natural gas (LNG) related businesses. The company conducts its business through its subsidiaries, including the development, construction and operation of its LNG terminal business and the development and operation of its LNG and natural gas marketing business.

The LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. Its LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing, which is developing a portfolio of long-and medium-term sale and purchase agreements with professional staff based in the United States, the United Kingdom, Singapore and Chile.

Goldman Sachs has a price target of $88. That compares with the posted consensus target of $81.43, as well as Thursday’s closing price of $63.25. Hitting the Goldman Sachs target would represent almost a 40% gain.

First Solar

This is a top clean energy pick at Goldman Sachs for 2020. First Solar Inc. (NASDAQ: FSLR) is the largest vertically integrated solar manufacturer in the United States. The company uses a specialized cadmium telluride (thin film) based panel, which is different from most other panels, which are silicon based. First Solar engages in manufacturing and has planned 6GW of capacity by 2020, with revenues increasingly coming from module sales.