GOLDMAN SACHS: Buy these 7 stocks set to offer explosive profit growth as the rest of the market slows

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ROE is a measurement of a company's effectiveness at deriving earnings growth from its investments. Kostin says stocks that generate high ROE growth aren't that expensive relative to other measurements of quality. "High returns on capital is one representation of 'quality' that still trades at a reasonable valuation," Kostin said in a note to clients.

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