Goldman's playbook for 5% 10-year yield — These strong balance sheet stocks are winners

  • 📰 CNBC
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

'We expect investors will continue to focus on balance sheet strength and avoid companies that are most vulnerable to increased borrow costs,' the firm said.

Investors should focus on stocks with strong balance sheets as these companies tend to be more resilient against high interest rates, according to Goldman Sachs. "Amid higher rates, we expect investors will continue to focus on balance sheet strength and avoid companies that are most vulnerable to increased borrow costs," David Kostin, Goldman's chief U.S. equity strategist, said in a note to clients.

Stocks with strong balance sheets have outperformed those with weak ones by 4 percentage points since the start of September, Goldman said. Companies with solid balance sheets that are well positioned for the higher rate regime included a slew of Big Tech names such as Google's Alphabet, Meta , Netflix and Nvidia . There are also a number of consumer names including Colgate-Palmolive , Costco and Chipotle Mexican Grill .

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Goldman Sachs small business push: 'Stop the squeeze' of new bank rulesOpponents argue new banking rules will heap fresh pressures on Main Street.
Source: axios - 🏆 302. / 63 Read more »