Bill Ingalls / NASA via Getty Images
- Earnings growth has been the single biggest driver of stock market gains since the start of the 8 1/2-year equity bull market.
- Goldman Sachs has identified the 13 S&P 500 companies set to expand profits the most in 2018.
Earnings growth has been the undeniable backbone of the 8 1/2-year bull market. But it’s not always easy to pick out the companies that are going to be the biggest contributors.
That rings especially true as we enter 2018, as analysts forecast that GOP tax reform will boost a wide range of sectors, making it even more difficult to identify the elite crust of stocks.
That’s where Goldman Sachs comes in.
The firm has ranked stocks in the benchmark S&P 500 index by expected 2018 earnings-per-share (EPS) growth, providing a handy guide to the companies they see best supporting more profit-driven gains.
Of course, earnings growth is just one component. There are many other factors that are crucially important to the selection of single stocks. For example, a stretched valuation can be a major deterrent to traders seeking bargains, or stocks with huge upside. It’s all part of the grand puzzle, and Goldman’s analysis simply helps make it easier for investors to make the right decision.
Without further ado, here are the 13 stocks Goldman says will offer the biggest earnings growth this year:
13. Alphabet
Ticker: GOOGL
Industry: Information technology
Goldman Sachs rating: Buy
2018 expected EPS growth: 28%
12. Salesforce.com
Ticker: CRM
Industry: Information technology
Goldman Sachs rating: Buy
2018 expected EPS growth: 29%
11. Adobe Systems
Ticker: ADBE
Industry: Information technology
Goldman Sachs rating: Neutral
2018 expected EPS growth: 31%
10. Chevron
Ticker: CVX
Industry: Energy
Goldman Sachs rating: Buy
2018 expected EPS growth: 32%
9. Berkshire Hathaway
Ticker: BRK.B
Industry: Financials
Goldman Sachs rating: Not covered
2018 expected EPS growth: 32%
8. Chubb Limited
Ticker: CB
Industry: Financials
Goldman Sachs rating: Buy
2018 expected EPS growth: 48%
7. Schlumberger
Ticker: SLB
Industry: Energy
Goldman Sachs rating: Buy
2018 expected EPS growth: 49%
6. Amazon
Ticker: AMZN
Industry: Consumer discretionary
Goldman Sachs rating: Buy
2018 expected EPS growth: 75%
5. Netflix
Ticker: NFLX
Industry: Information technology
Goldman Sachs rating: Buy
2018 expected EPS growth: 78%
4. EOG Resources
Ticker: EOG
Industry: Energy
Goldman Sachs rating: Buy
2018 expected EPS growth: 97%
3. Charter Communications
Ticker: CHTR
Industry: Consumer discretionary
Goldman Sachs rating: Neutral
2018 expected EPS growth: 105%
2. Occidental Petroleum
Ticker: OXY
Industry: Energy
Goldman Sachs rating: Buy
2018 expected EPS growth: 106%
1. ConocoPhillips
Ticker: COP
Industry: Energy
Goldman Sachs rating: Buy
2018 expected EPS growth: 134%
Get the latest Goldman Sachs stock price here.
Earnings growth has been the single biggest…
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