The global stock market is scorching hot right now, but that may not be enough for longer-term investors looking for opportunities that will remain fruitful well into the future.
That's why it's important to identify companies with strong growth profiles — ones that will stay attractive on a fundamental basis in the event of a downturn. After all, when the market is struggling, companies that can stand on their own two feet are often the most appealing to traders flailing for returns.
"Growth stocks typically outperform in periods of solid but unspectacular economic activity," a group led by Goldman chief US equity strategist David Kostin wrote in a client note.
Each company must have:
- Realized sales growth of at least 10% in 2015 and 2016
- Estimated sales growth of at least 10% in 2017 and 2018, according to Goldman analysts
- Consensus long-term earnings growth of at least 10%
Source: Bloomberg Pro Terminal
Jr Trader Alexander Kumanov
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