Goldman Sachs has a simple 'laggard' stocks strategy for early 2020 that tends to beat the market

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Goldman Sachs is advising clients to carefully identify the 2019 losers that most likely to reverse course and become leaders in the first quarter of 2020.

The strategy to pick up battered stocks in the beginning of a given year has a good track record of beating the market, according to Goldman.

Among the bottom third of the S&P 500 in terms of 2019 performance, Goldman recommended buying the laggards that its analysts have out-of-consensus buy ratings and above-consensus estimates. Westlake Chemical, L Brands, Terex, Yelp, Cree and Under Armour are some of the "buy-rated laggards" of 2019 where the majority of the Street has neutral or sell ratings but Goldman analysts recommend buying.Brendan McDermid | ReutersThe strategy to pick up battered stocks in the beginning of a given year has a good track record of beating the market, according to Goldman.

Among the bottom third of the S&P 500 in terms of 2019 performance, the bank recommended buying the laggards that its analysts have out-of-consensus buy ratings and above-consensus estimates.

 

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