With 2020 already more than half over and the third quarter in full swing, many investors are resetting for what could be a more volatile rest of the year. The ongoing trade issues and political conflict with China, the geopolitical instability in the Middle East, and domestic unrest here at home could continue to stir the pot. While the rally of stocks off the March lows 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. 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 for the stock that had the largest upside to the Goldman Sachs assigned target prices. We found five that aggressive investors may want to add to portfolios, though it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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Bunge
This top mid-cap stock has rallied nicely off the March lows but still offers investors an outstanding entry point. Bunge Ltd. (NYSE: BG) operates as an agribusiness and food company worldwide. It operates in the following segments.
The Agribusiness segment purchases, stores, transports, processes and sells agricultural commodities and commodity products, including oilseeds (primarily soybeans, rapeseed, canola and sunflower seeds) and grains (primarily wheat and corn) and vegetable oils and protein meals. It provides its products for animal feed manufacturers, livestock producers, wheat and corn millers and other oilseed processors, as well as third-party edible oil processing companies, as well as for industrial and biodiesel production.
The Edible Oil Products segment provides packaged and bulk oils and fats, including cooking oils, shortenings, margarines, mayonnaise and others for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies and other food manufacturers, as well as grocery chains, wholesalers, distributors and other retailers.
The Milling Products segment offers wheat flours and bakery mixes, corn milling products (including dry-milled cornmeals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified cornmeal, corn-soy blends, and other products), whole grain and fiber ingredients and milled rice products.
The Sugar and Bioenergy segment produces sugar and ethanol, and it generates electricity from burning sugarcane bagasse. The Fertilizer segment offers nitrogen, phosphate and potassium fertilizers, as well as single super phosphate, ammonia, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple superphosphate, urea, urea-ammonium nitrate, ammonium sulfate and potassium chloride.
Investors receive a 4.51% dividend. Goldman Sachs has a massive $67 price target for the shares, while the Wall Street consensus target is $61.75 Bunge stock ended Friday at $44.33 per share, so hitting the Goldman Sachs target would be a massive 50% gain.
CACI International
This information services leader could be poised for a huge second half of 2020. CACI International Inc. (NYSE: CACI) is an information domain expertise, solutions and services provider. CACI supports national security missions and government IT modernization for intelligence, defense and federal civilian customers. It recently has increased its exposure to the products market with the acquisition of LGS Innovations and Mastodon Design.
The company recently announced it has partnered with RigNet to add new capabilities to its secure mobile communications application for U.S. Government agencies, SteelBox. CACI previously announced its partnership with BlackBerry to provide SteelBox, an enterprise technology that is the first secure and certified mobile communications app that enables government officials to use smartphones, to text and make calls without fear of eavesdropping or data compromise.
The Goldman Sachs price objective is a stunning $329, and the consensus target is lower at $291.83. The last trade on Friday was posted at $204.55. Hitting the target would be a gain of over 60% for investors.
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