After a stretch of underperformance in the broader equities market, many stocks are now trading at bargain prices - and in particular, says brokerage firm Goldman Sachs (GS), its list of stocks with “high operative leverage” are trading near a record valuation discount compared to low operating leverage stocks. The analysts at Goldman, led by Jenny Ma, like high operating leverage stocks in this environment, because they're able to generate more sales without an accompanying increase in costs.
Here are five familiar names from Goldman's list of high operating leverage stocks that have underperformed the broader S&P 500 Index ($SPX) this year, but still have consensus “Buy” ratings from analysts - and could be poised for upside from earnings growth. Let's have a closer look.
