Investing

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

First Solar also develops and sells downstream solar projects and has created some of the largest solar installations in the country. While there have been some trade-related concerns, solid earnings should keep a nice tailwind behind the shares. With systems business and module guidance very achievable, this is perhaps the strongest player in the industry.

The strong $81 Goldman Sachs price objective is well above the $69.25 consensus analyst target. The stock closed most recently at $56.70 a share. Hitting the Goldman Sachs target would represent a 42% gain.

LyondellBasell

This top chemical company with a sterling balance sheet is another solid play for conservative investors. LyondellBasell Industries N.V. (NYSE: LYB) manufactures chemicals and polymers, refines crude oil, produces gasoline blending components and develops and licenses technologies for production of polymers. After getting crushed in the late summer, the stock has rallied back nicely.

Over half of earnings are generated in the company’s Olefins and Polyolefins Americas segment, where costs are linked to the price of cheap natural gas in the United States, while selling prices are correlated with the price of oil. The company has pursued a strategy of low-cost, high return on invested capital debottlenecks coupled with cash returns to shareholders.

Note that debottlenecking is the process of identifying specific areas or equipment in oil and gas facilities that limit the flow of product (known as bottlenecks) and optimizing them so that overall capacity in the plant can be increased.

LyondellBasell investors receive an outstanding 4.64% dividend. Goldman Sachs has set its price target at $121, while the posted consensus target was last seen at $102.36. The shares closed at $90.57 on Thursday. Hitting the target price would be a huge 33% gain.

Wingstop

This company has huge upside potential, and with the NFL playoffs in full swing, you can bet the orders will skyrocket. Wingstop Inc. (NASDAQ: WING) operates and franchises more than 1,300 locations worldwide. The company is dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings and tenders, always cooked to order and hand-sauced-and-tossed in fans’ choice of 11 bold, distinctive flavors. Wingstop’s menu also features signature sides including fresh-cut, seasoned fries and freshly made ranch and bleu cheese dips.

In 2018, Wingstop’s system-wide sales increased 16% year-over-year to $1.3 billion, marking the 15th consecutive year of same-store sales growth, as well as 290% shareholder return, since its 2015 initial public offering. With a vision of becoming a Top 10 Global Restaurant Brand, the company’s system is comprised of independent brand partners who account for more than 98% of Wingstop’s total restaurant count.

The company has been ranked on Franchise Business Review’s “Top 30 Food and Beverage Franchises” (2019), Fast Casual’s “Movers & Shakers” (2019), QSR Magazine’s “The Industry’s 9 Best Franchise Deals” (2019) and “The QSR Top 50” (2019) for limited-service restaurants in the United States.

Investors in Wingstop receive just a 0.48% dividend. The Goldman Sachs price objective is a stunning $140. The consensus target is down at $102.26, and the last trade on Thursday was served up at $91.30. Hitting the price target would be a gigantic 53% gain.

These five top stocks spread across different sectors offer tremendous upside to the Goldman Sachs price objectives. While there is no guarantee they get there, even moving halfway to the targets would provide very solid gains for investors.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.