What Stocks Does Goldman Sachs Recommend?

MP Materials (MP)

MP Materials is a mining company that mines rare-earth metals — which are critical for technological revolutions. For example, these metals are why we have smartphones and electric cars. They are used to create magnets for drones, robots, and wind turbines.

The company is wildly successful with 40% profit margins and 143% revenue growth. Since its IPO in 2020, the stock value has tripled.

Mastercard (MA)

Mastercard is a top stock pick for investors looking for some protection from inflation. After ending its longstanding streak of outperforming the S&P 500 in 2021, the credit card company is poised to make a strong return in 2022.

Mastercard is one of the rare companies that actually benefit from inflation because of its business model (capturing a portion of each credit card sale) and robust balance sheet. 

Despite inflation creeping higher, US consumers’ spending was undeterred in the last quarter of 2021. In fact, it rose 0.6% from the year prior. So, manageable inflation and the ensuing increase in the cost of goods and services will be a benefit to Mastercard’s revenue and profits this year. Analysts are forecasting a 20% jump in Mastercard’s revenue in 2022 to $22.5 billion. 

United Therapeutics (UTHR)

United Therapeutics is a biotech company that develops products aimed at addressing the unmet medical needs of patients with chronic diseases around the world.

It also engages in early-stage research and development of technologies related to organ transplants, including regenerative medicine.

UTHR’s total revenues in the third fiscal quarter of 2021 increased by 17% YOY to $444.7 million. Its operating profit was $228.70 million, a 3.4% increase from the year before.

Analysts are expecting more growth this year, and it’s already gained 33.2% year-to-date.

Nvidia (NVDA)

Nvidia’s stock gained 128% in 2021, despite the global chip shortage and supply chain disruptions.

In 2021, Nvidia beat expectations every quarter, and revenue grew at least 50% each quarter for the past five quarters. 

So far in 2022, it’s been a rockier start for NVDA, falling into correction mode and dropping 20% year-to-date. But, analysts still believe NVDA is poised for growth in 2022.

In its low-labor cost basket, Goldman Sachs recommends: 

Netflix (NFLX)

After dropping 37% in January, investors may be wary of investing in Netflix. This makes now potentially the ideal time to “buy the dip” and invest in Netflix, a streaming giant that’s almost certain to bounce back over the long-term with a highly anticipated 2022 content slate including fan-favorite titles such as Ozark, Too Hot to Handle, Stranger Things, and The Witcher.

Analysts are predicting the solid content slate will help it to reduce church and retain subscribers. In its Shareholder Letter for Q3 2021, Netflix promised a greater number of originals in 2022 than the year prior and a more balanced release schedule through the course of the year.

Under Armour (UAA)

Under Armour is a well-known leader in performance apparel. Under Armour’s products offer unique advantages over other types of conventional athletic wear, including the materials they’re made of that wick sweat away from the body and control body temperature.

In 2020, the brand got started on a significant restructuring plan that cost about $600 million, aimed at rebalancing its cost base to improve profitability and cash flow.

Under Armour continues to report strong results and company analysts are even expecting 2022 to be a record year in terms of revenue and EPS.

Under Armour is positioning itself as a great investment in 2022, especially for longer-term investors.

Coca-Cola (KO)

Coca-Cola is at the forefront of product innovation for emerging markets. The industry leader also has the ability to navigate supply chain issues better than smaller companies can.

In November of last year, the company announced its largest acquisition ever, taking full control of Bodyarmor SuperDrink. This has analysts eager to see the impact on the company’s share prices.

Apple (AAPL)

Apple has captivated consumers for decades now with sleek devices and cutting-edge technology. But, it has something other technology companies, such as its fierce competition Android, don’t have: iOS.

The operating system reinforces its brand authority through the creation of an ecosystem that can’t be beaten or replicated.

Apple iOS is closed-source, unlike Android. This means that third-party manufacturers can’t integrate the software into their own devices and provide an experience similar to Apple at a lower price. This is what gives Apple such strong pricing power and control over its ecosystem.

Apple’s trendy devices present two opportunities for monetization: the initial purchase of the device itself and ongoing purchases for services to the devices, such as Apple TV+, Apple Music, Apple Fitness+, and App Store purchases.

Despite its $2.8 trillion market cap, the tech giant is positioned well to create wealth for its shareholders through exploding consumer demand and its expanding services.

PayPal (PYPL)

As long as you can tolerate some risk, PayPal may reward you later on in 2022.

The payments processor got hammered in 2021 and is off to a brutal start of 2022. But, active accounts continue to rise, as does revenue and cash flow, making the company’s valuation much more compelling.

As PayPal continues to grow and expand its product offerings in fields that are growing fast, such as mobile wallets, shopping rewards, and even cryptocurrency, PayPal has the potential to bounce back in a big way this year.

#1 Stock For The Next 7 Days

When Financhill publishes its #1 stock, listen up. After all, the #1 stock is the cream of the crop, even when markets crash.

Financhill just revealed its top stock for investors right now... so there's no better time to claim your slice of the pie.

See The #1 Stock Now >>