ZTS - Goldman touts stable stocks for this market; here is their rebalanced portfolio

Investors should own stable stocks as they grapple with tighter monetary policy and slowing growth, Goldman Sachs strategist David Kostin says. "Firms with low share price volatility and stable earnings growth should outperform in the uncertain macro environment," Kostin and team wrote in a note. "Our High Sharpe Ratio basket, which we rebalance in this report, also takes volatility into account, but maximizes prospective risk-adjusted returns." The prospective Sharpe Ratio is the return on the consensus 12-month price target divided by 6-month option-implied volatility. "The strategy has a high hit rate of outperformance," Kostin said. "The median stock is expected to generate 2x the return of the median S&P 500 (SP500) (NYSEARCA:SPY) stock with only slightly higher implied volatility." "At the sector level, the median Communication Services stock has the highest prospective Sharpe Ratio (1.2) while the median Energy stock has the lowest (0.6)," he said. The basket, down 18%

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Goldman touts stable stocks for this market; here is their rebalanced portfolio