UFPI - Stocks ignored by the narrow rally: here are Goldman's top cyclical laggards

2023-06-19 15:00:00 ET

Amidst the recent outperformance of megacap tech and other AI beneficiaries, Goldman Sachs has raised its S&P 500 year-end price target to 4,500 from 4,000, suggesting a potential upside of 2% from the current level of 4,400.

For bulls that believe the rest of the market will start participating on the Big-Tech rally, Goldman screened cyclical laggards consisting of Russell 3000 ( IWV ) stocks with market capitalizations exceeding $2 billion.

These stocks have demonstrated YTD underperformance compared to the S&P 500 ( SP500 ) ( SPY ) and currently trade at consensus forward P/E ratios below 19x. Notably, despite their underperformance, these stocks have experienced positive revisions to their 2024 EPS of 5% or more, indicating potential fundamental improvement.

The stocks by sectors are:

Basic Materials

• Cactus ( NYSE: WHD ), year to date 2024 estimated EPS revision 19%
• Expro Group Holdings N.V. ( XPRO ), 18%
• Noble Corporation ( NE ), 8%
• Newmont Corporation ( NEM ), 17%
• Cleveland-Cliffs ( CLF ), 15%
• Golar LNG Limited ( GLNG ), 6%
• CONSOL Energy ( CEIX ), 6%
• Murphy USA ( MUSA ), 12%

Consumer Goods and Services

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