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My socks at goldman sachs is recommending their clients to buy that is what i’m going to share with you guys here today the five stocks what these companies do three of these companies or at least two to three of these companies are very popular companies actually some of you guys may actually own right now or have thought about buying very popular stocks two of
Them are much more under the radar type companies all these companies are highly profitable all they make a lot of money and so this is coming out of their chief investment strategist is basically the one that is suggesting these five stocks all right so goldman sachs is worried about rising commodity prices in higher wages but the firm believes they’re still an
Investment strategy that can outperform the firm recommends companies with high profit margins and return on assets that’s because despite the one-time boost to profit from the corporate tax cuts companies face a number of challenges to maintain their profit margins he’s saying okay so let’s just get into this guy’s these are those five stocks i hope you guys enjoy
This but first one it’s a company named ab the ticker symbol a bb v this one year-to-date hasn’t done anything that’s gone down point seven percent so this stock has not done anything as of yet this company ab v discovers develops manufactures and sells pharmaceutical products worldwide it’s a pharmaceutical company if you want to read more in depth on it pause the
Video right here and you can kind of read more in depth on it if you look at their income statement the revenue growth has been stellar okay stellar just year after year the knocking out of the ballpark so nineteen point nine billion they do in 2014-2015 they do twenty two point eight billion dollars in 2015 2016 they do twenty five point six billion dollars this
Past year they do twenty eight – okay so just consistent that that’s the type of revenue growth you want to see out of a company consistent and going up you know at least a few billion a year that is phenomenal there okay phenomenal now on the net income side i’m not nearly as impressed so they did under two billion back in fourteen but then fifteen they do over
Five billion sixteen they do almost six billion is past year they dropped down to five point four rebill ioan so i was a little hit this past year maybe they can get that back going again this company right now trades at a forward p under 11 all right under 11 and trailing p of 24 working capital 145 billion so needless to say they expect to be a lot more profitable
This year than they have been in the past a healthcare related company a health care is not a sector i usually personally touch very much just because a lot of these companies have limited growth at least from what i’ve seen well you know in the ten years i’ve been the stock market these companies have limited growth and a lot of them are a little they’re some of
Their business models are hard to understand and like why is this one have an advantage over this one what not not a sector i’m not interested in but needless to say it looks like it could be a pretty good stock guys let’s get into stock number two you’re gonna know this one very well in the company’s name is facebook facebook you’re to date they’re up close to 18%
Which is amazing when you take into context just the fact that facebook went through the whole cambridge analytical situation this year mark zuckerberg went to congress and you know our capitol hill i mean how to talk about the whole situation like you know there’s been a lot of drama with facebook in this year so to be up nearly 18 percent in a market that’s been
Pretty weak this year that’s very very very impressive all right facebook do i really need to explain this company they own some of the biggest platforms in the world facebook instagram whatsapp oculus just one of different things if you want to read more about the company you can pause it right there income statement or dubli the most impressive income statement
Of any public company i’ve ever seen honestly this is arguably the best income statement i’ve ever seen of any company in terms of the the rate that their numbers are going up okay revenue twelve billion in 2014 then almost 18 billion in 2015 27 plus billion in 2016 this pasture over 40 billion dollars in revenue that is unbelievably impressive then you look at the
Net income you can see how much money is going down on that bottom line it’s amazing okay under three billion and fourteen then 15 they do 3.6 then 2016 they do over 10 billion dollars in net income and then this pasture they do nearly 16 billion dollars in that income it is off the charts off the charts that that income statement is beyond impressive so consistent
Such phenomenal growth in the revenue and the net income in that i mean merely you know somewhere around close to 40% of the money that’s coming through the door in revenue it’s actually going down to net income that’s one of the highest ratios i’ve seen out there from a big company guys unbelievable facebook right now has a market cap of around six hundred billion
Dollars they have a trailing p/e on this company a thirty four forward p/e of twenty two which for p of twenty two is actually relatively low for this stock um you think about it they still have a lot of growth ahead of them in terms of their profit growth and revenue growth as ad rates go up and more advertisers get on their platforms in terms of monthly active
Users daily active users using their products in my personal opinion they don’t have much growth left in those type of things okay as far as big percentages however when you’re taking just in an account like how many more advertisers are gonna be advertising an instagram facebook whatsapp all these different things and how those ad rates are open up push up they
Should be able to increase profits dramatically over the next five to ten years guys so that one came in at number two number three is has been one of the hottest stocks that stocks up somewhere around sixteen hundred percent in the past three years or not past four years past five years about eleven hundred percent in the past three years nvidia corporation up
Another twenty eight plus percent just this year alone guys just this year alone nvidia operates two business segments gpu and their processor business they you know if you want to pause that you can read more in depth about it their their business model is unbelievable in terms of all the things that you’re doing they’re not just doing things like high-end gaming
But they’re involved with you know if you want to mine for kryptos and whatnot you’re going to be probably use nvidia products artificial intelligence this companies out in front of everybody in the artificial intelligence game when you think about from the perspective of self-driving cars it’s just they are doing so many big things in this world that is going to
Help you know a rapidly accelerate so many different industries and they’re one of the biggest disruptors in all of the world right now in terms of the you know that company’s gonna disrupt in the future amazingamazing business and you can see it’s amazing business by looking at this income statement okay so four and a half billion dollars doing 2015 for revenue
2016 they do five billion then nearly seven billion this past year they do nine point seven billion dollars almost ten billion dollars in revenue there and then you see the net income has just going up at a substantial rain 631 million then they do six hundred fourteen million it looks like oh maybe this business isn’t growing much then i’ll suddenly do 1.6 billion
Dollars this past year they do over three billion dollars in net income all right a very fast-growing company market cap on this one of around one hundred and fifty 1 billion dollars so this is becoming a really big corporation now trailing via 41 rich 4 p of 31 rich is also rich but at the same time when you take into account the fact that this company should be
Able to grow for years and years to come because they’re in the forefront of all these major industries that are gonna blow up over the next few years when you take that into account you you kind of got to understand you got to pay up for a company like this and when you have a management team like nvidia has where they are executing on all cylinders they deserve
A higher premium than what the market is trading at it’s just the bottom line the growth going forward and how great that management team is like they just kind of deserve it in the end alright next one up here is another healthcare name this company’s called biogen ok biogen this company is up around 10% year-to-date okay biogen discovers develops manufactures and
Delivers therapies for the treatment of neurological in neuro degenerative diseases worldwide wow i’m so proud of myself being able to say that name neurodegenerative diseases worldwide if you want to read more about the company go ahead and pause the video here you can kind of read that more up on it another company has great you know income statement especially
In terms of revenue nine point seven billion in 2014 2015 they do ten point seven billion eleven point four billion in 2016 2017 this past year they do over twelve billion dollars in revenue consisting consisting growth the net income i’m not nearly as impressed on because it’s kind of all over the place so to point nine billion then they do to three point five
Billion in net income then three point seven billion this past year they dropped out with two point five billion so net income is kind of all over the place for this company maybe they’re expected to get it back going here company has a market cap of seventy four billion so a pretty big company trailing pia twenty five but a four p of thirteen in this company which
Is very low so maybe an interesting healthcare name if you guys know anything about biogen i would love to hear from you guys in that comment section kind of you know talk about biogen a bit and these last one number five is a company named micron ticker symbol mu very very very popular stock so this one year today is up close to thirty seven percent the best
Part about that is most mu shareholders feel like it should be up way more than that right now just have a 37 percent game a lot mu shareholders are like dude this stock should be up fifty sixty seventy percent right now based upon the type of results this company has put out so micron in the simplest way to just describing this company it’s a memory chip company
Alright networking storage business mobile business embedded business anything that’s using can you think about anything that’s using computing power it needs memory in it okay if you want to pause the video there to look more into it you can look more in there but as a memory chip company at the end of the day revenue has been inconsistent for this company in
The past few years so they do 16 billion 2014 though the 15 comes along they do another 16 billion 2016 major troubles with the company just because of the industry is basically was going through a hard time and they only do 12 billion dollars in revenue has past year over twenty billion dollars in revenue alright and on the net income side they do 3 billion in
Profit back in 1415 they do through 2.8 billion 2016 they actually lose money nearly 300 million then also make over a five billion dollar profit this past year and this upcoming year listen to this this this this year we’re in right now they’re expected to maybe make somewhere around 10 billion dollars maybe even more than 10 billion dollars and then income guys
I was thinking about that a couple years ago as a company i losses 300 million now expecting to make a profit of over 10 billion that’s your unbelievable this company has a market cap of 65 billion on it trailing p of five point six and afford p of four point eight yes i read that right here are not mistaken they’re a 4.8 4.8 forward peons company unbelievably
Low okay so let’s go ahead and look at this for a second so goldman’s highest net margins and return on assets basket if so if we look at these five stocks here’s kind of like what what the you know goldman sachs is expecting these stocks to go up the healthcare name that first one we talked about ab fee they’re expecting around a 41 percent upside potential their
Biogen expecting around 12% upside facebook they’re expecting around a 9% upside so it would be the least good performer out of the bunch and you they’re still expecting about 23% upside and then nvidia nvidia they’re still expecting around 23% upside there one thing i’m just costing costing you guys on is just because goldman sachs you know one of the main guys
In charge of their equity strategy says hey you know you guys should go out and buy those stocks that does not mean you should necessarily go buy those stocks always do your own research always do your own work you know it’s worth looking into some of these companies and kind of seeing if it’s something that interests you to invest in but never just invest in it
Because someone said it whether it’s me whether it’s goldman sachs don’t don’t don’t matter who it is warren buffett always do your own research out there and try to figure out if that you believe that’s a good company being invested in guys so i would love to hear you guys opinion on any of these stocks down there in the comment section i would love to hear from
You guys as always make sure you follow me on instagram if you have not already the content i am posting on instagram is going up to a whole new levels guys i’m just taking the value proposition for following me on instagram up to record level so make sure you follow me on there if you have not already thank you for watch and have a great day
Transcribed from video
5 STOCKS GOLDMAN SACHS SAYS BUY NOW By Financial Education