It happened in 2008 and 2009, and despite a huge rally off the bottom, many of the top companies that investors are very familiar with have taken a beating. Needless to say, the ones that have been beaten down the most are in sectors that are struggling the most with the temporary new normal routines. While conditions are improving as the country opens up, some sectors continue to fare better than others.
We screened the BofA Securities research database looking for companies that are likely to survive the current troubles and could very well offer patient investors some huge returns over the next year or so. Patient investors that did that in 2008 and 2009 absolutely killed it over the next few years.
Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found five stocks trading under the $10 level that could provide investors with some solid upside potential. While much better suited for aggressive accounts, they could prove exciting additions to portfolios looking for solid alpha potential.
While all five of the stocks are rated Buy at Goldman Sachs, it’s important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This top security company is a well-known protector of homes and businesses. ADT Inc. (NYSE: ADT) is the largest residential and second-largest commercial security monitoring company in North America. The company serves over 7 million customers, installing over a million systems per year. Roughly 94% of revenue is generated in the United States, with the remainder from Canada.
The company announced earlier this month that it had won a contract from Dollar Tree to provide advanced security technologies and monitoring services at thousands of stores. ADT Commercial will service Dollar Tree and Family Dollar locations across the United States, the company said. The contract, the value of which was not disclosed, includes equipment and service enhancements, as well as round-the-clock remote support from ADT.
Goldman Sachs has an $8 price target on the shares, while the consensus across Wall Street is lower at $7.69. ADT stock traded mostly above $8 since the beginning of June but slipped below that level late in the week.
Noble Energy Inc. (NYSE: NBL) is an independent energy company engaged in the acquisition, exploration and production of crude oil, natural gas and natural gas liquids (NGLs) worldwide. Its principal projects are located in Denver-Julesburg Basin, Marcellus Shale, Eagle Ford Shale and Permian Basin of the United States, as well as in deepwater Gulf of Mexico, offshore Eastern Mediterranean and offshore West Africa.
The company has been in the process of a reset in operating cash flow toward gas in Israel, which trades at above two times U.S. gas prices and could substantially contribute to cash flow this year.
The Goldman Sachs price target is $14, which compares to the consensus target of $12.71. Noble Energy stock retreated below $10 a share last week.