Goldman says these 'cheap' global stocks are set to win in the short and long-term

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Goldman Sachs said the absolute and relative valuations of these companies look cheap compared to history.

As Europe struggles with soaring electricity and gas bills, Goldman Sachs says global companies focusing on energy efficiency are set to outperform. Energy costs are sky high in Europe right now, after a surge in gas prices and plummeting supply following Russia's invasion Ukraine. In a bid to tackle the issue, the European Union has passed emergency measures to push for mandatory power savings.

These firms have spent two times more than the market on research and development, as well as growth capital expenditure. Their absolute and relative valuations looks cheap compared to history. They are likely to get noticed by more investors focused on ESG, or environmental, social, and governance factors. These are some of Goldman's energy efficiency picks: In insulation, the analysts like Kingspan Group and Rockwool .

 

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