In a recent report, Goldman Sachs identified 50 stocks expected to grow their profitability.For months, Wall Street analysts have pointed to a global earnings recession that has squeezed corporate profit margins, ensuring that only companies with the strongest fundamentals would survive unscathed.
"We expect EBIT margins will be the most important factor for ROE in the near term, as long-standing tailwinds of lower taxes and interest rates have reversed recently," he explained. Although Kostin believes that, for now, ROE levels have potentially plateaued, he doesn't believe that profitability will substantially grow in the near term.
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