Stocks to buy: Cheap stocks for the reopening trade - Goldman Sachs

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GOLDMAN SACHS: Buy these 38 cheap stocks set to soar as the world's largest economies reopen - including one with an upside of 65%

Shares in European airlines have soared on the news this week.Visit the Business section of Insider for more storiesOn Monday, UK Prime Minister Boris Johnson announced a new roadmap to take Britain out of lockdown, looking to follow Israel into a new, post-vaccine resumption of economic activity.

UK-listed airlines like budget carrier easyJet are already staging a comeback, gaining 171% in the last three trading days alone, as investors grow optimistic about the prospects for more normal consumption patterns, especially travel. Sectors like retail, leisure and travel saw demand crippled, as coronavirus spread throughout the Western world, but Goldman said in a note on Monday it expects these stocks to"outperform on the back of a sustained broader macro recovery."

The difference between domestic travel, such as restaurant visits, and road traffic, for example and international travel is currently relatively small, with activity levels in both bands taking big hits, to run at around 80% and 58% below normla levels, respectively.

 

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