ALGN - Goldman adds 25 new stocks with growth potential to its ROE basket

2023-06-23 04:59:05 ET

Goldman Sachs has rebalanced its ROE Growth basket of 50 stocks selected based on consensus expected return-on-equity growth over the next 12 months.

The sector-neutral basket tapped 25 names in the rebalance.

The median stock in the basket is projected to achieve 13% ROE growth over the next 12 months, outperforming the median S&P 500 ( SP500 ) ( SPY ) ( IVV ) ( VOO ) company's -9% growth.

But the near-term performance of ROE growth stocks depends on whether Goldman's economists are right about a solft landing or if the consensus for a hard landing holds.

The stocks in the growth basket sector-wise are:

Communication Services ( NYSEARCA: XLC )

• News Corp. ( NWSA ), ROE last 12 months 4%, consensus ROE growth 49%, new addition
• Take-Two Interactive Software ( TTWO ), 6%, 12%
• Walt Disney ( DIS ), 7%, 21%
• Meta Platforms ( META ), 20%, 8%, new

Consumer Discretionary ( NYSEARCA: XLY )

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