Stock picks to buy, 15 cheap firms with strong growth upside: Goldman - Business Insider

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GOLDMAN SACHS: Buy these 15 super-cheap stocks now before their prices catch up to their strong growth and earnings prospects

strategist Ryan Hammond doesn't think all the opportunities have been picked over. He expects marketwide valuations to be lifted by a combination of loose monetary policy and improving expectations for economic growth.

In fact, he's seeing 15 stocks trading at large "discounts to their modeled, fundamental-implied valuation." To arrive at his top stock picks, Hammond screened for relatively cheap S&P 500 names based on the ratio of their prices to estimated earnings per share two fiscal years from now . His screen further accounted for fundamentals including "equity duration, near-term growth expectations, market cap, margins, asset turnover, balance sheet strength, and earnings variability."

Listed below are 15 stocks Hammond thinks look attractive based on the criteria above. They're listed in ascending order of the percentage discount to Goldman's projected valuations.

 

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