Goldman Sachs says to buy these 33 stocks that are set to generate the market’s most explosive sales growth in 2021 as the COVID-slammed economy reopens

  • Many companies are growing optimistic that they will soon reopen their doors for business. 
  • Analysts expect S&P 500 names to report 6.2% revenue growth for Q1 2021, according to FactSet.
  • To find names that could have strong sales growth in 2021, GS updated its revenue growth basket. 
  • See more stories on Insider’s business page.

2020 was not a favorable year for many, especially business owners whose financials were challenged by the unprecedented virus that has been wreaking havoc for more than a year now. 

In response to the coronavirus outbreak, governments around the world imposed lockdown measures. Some of the first to do so in the US included the governors of New York, New Jersey, and Connecticut, who announced in March 2020 that places like gymnasiums, movie theaters, and casinos would be closed indefinitely. 

These types of businesses were heavily affected by the shift in consumer buying habits during the pandemic. Individuals stayed at home and went from spending their money on traditional entertainment like amusement parks and gyms towards activities and products that are better suited to social distancing guidelines and teleworking. 

By offering support to many who work from home, Zoom was one of the names to see a mammoth increase in subscribers. Its 326% sales growth in 2020 was one of the highest within the tech sector. 

And then there were others like Amazon and Target whose lockdown-driven sales increased by around 38% and 19.8% respectively in 2020. 

On the other hand, there were many like Starbucks, which suffered a global-store sales decline of about 9% last year. Another example was Destination XL, the men’s clothing retailer whose sales fell 32.7%.

However, some of the names that suffered the most from COVID could soon experience explosive year-over-year growth rates given the magnitude of the economic shock. And with President Joe Biden planning on having enough vaccines for every US adult by the end of May, companies will be able to soon reopen their doors for consumers that are eager to restart spending. 

Estimates for sales growth are already very optimistic to start the year. Analysts expect S&P 500 companies to report 6.2% revenue growth for the first quarter according to FactSet Senior Earnings Analyst John Butters. If that forecast holds, then it will be the highest growth rate since the fourth quarter of 2018. 

To find companies that could report the strongest sales growth in 2021, Goldman Sachs recently updated its revenue growth basket of stocks with the highest estimated sales growth based on analysts’ consensus forecasts. It tracks companies that are expected to use their generated revenues to drive bottom-line earnings, or net profit, which has historically been the biggest driver of stock-price returns.

The 33 names that were recently added to the basket are listed below in no particular order. We included their corresponding tickers, sectors, market caps, and expected 2021 sales growth.

1. Live Nation Entertainment

Ticker: LYV

Sector: Communication Services

Market cap: $19 billion

2021 sales growth estimate: 207%

Source: Goldman Sachs 

2. Las Vegas Sands

Ticker: LVS

Sector: Consumer Discretionary

Market cap: $48 billion

2021 sales growth estimate: 138%

Source: Goldman Sachs

3. MGM Resorts

Ticker: MGM

Sector: Consumer Discretionary

Market cap: $19 billion

2021 sales growth estimate: 69%

Source: Goldman Sachs

4. Tesla

Ticker: TSLA

Sector: Consumer Discretionary

Market cap: $663 billion

2021 sales growth estimate: 52%

Source: Goldman Sachs

5. Borg Warner

Ticker: BWA

Sector: Consumer Discretionary

Market cap: $12 billion

2021 sales growth estimate: 48%

Source: Goldman Sachs

6. Expedia

Ticker: EXPE

Sector: Consumer Discretionary

Market cap: $23 billion

2021 sales growth estimate: 45%

Source: Goldman Sachs

7. Sysco

Ticker: SYY

Sector: Consumer Staples

Market cap: $41 billion

2021 sales growth estimate: 18%

Source: Goldman Sachs

8. Devon Energy

Ticker: DVN

Sector: Energy

Market cap: $17 billion

2021 sales growth estimate: 90%

Source: Goldman Sachs

9. Pioneer Natural Resources

Ticker: PXD

Sector: Energy

Market cap: $35 billion

2021 sales growth estimate: 88%

Source: Goldman Sachs

10. Charles Schwab

Ticker: SCHW

Sector: Financials

Market cap: $119 billion

2021 sales growth estimate: 43%

Source: Goldman Sachs

11. Franklin Resources

Ticker: BEN

Sector: Financials

Market cap: $15 billion

2021 sales growth estimate: 26%

Source: Goldman Sachs

12. Huntington Bancshares

Ticker: HBAN

Sector: Financials

Market cap: $17 billion

2021 sales growth estimate: 23%

Source: Goldman Sachs

13. T. Rowe Price Group

Ticker: TROW

Sector: Financials

Market cap: $39 billion

2021 sales growth estimate: 18%

Source: Goldman Sachs

14. Intercontinental Exchange

Ticker: ICE

Sector: Financials

Market cap: $65 billion

2021 sales growth estimate: 14%

Source: Goldman Sachs

15. Viatris

Ticker: VTRS

Sector: Health Care

Market cap: $17 billion

2021 sales growth estimate: 46%

Source: Goldman Sachs

16. Regeneron Pharmaceuticals

Ticker: REGN

Sector: Health Care

Market cap: $49 billion

2021 sales growth estimate: 41%

Source: Goldman Sachs

17. Pfizer

Ticker: PFE

Sector: Health Care

Market cap: $193 billion

2021 sales growth estimate: 30%

Source: Goldman Sachs

18. DENTSPLY SIRONA

Ticker: XRAY

Sector: Health Care

Market cap: $14 billion

2021 sales growth estimate: 23%

Source: Goldman Sachs

19. Abbott Laboratories

Ticker: ABT

Sector: Health Care

Market cap: $208 billion

2021 sales growth estimate: 22%

Source: Goldman Sachs

20. AbbVie

Ticker: ABBV

Sector: Health Care

Market cap: $190 billion

2021 sales growth estimate: 21%

Source: Goldman Sachs

21. Alaska Air

Ticker: ALK

Sector: Industrials

Market cap: $8 billion

2021 sales growth estimate: 59%

Source: Goldman Sachs

22. Southwest Airlines

Ticker: LUV

Sector: Industrials

Market cap: $35 billion

2021 sales growth estimate: 53%

Source: Goldman Sachs

23. Delta Air Lines

Ticker: DAL

Sector: Industrials

Market cap: $31 billion

2021 sales growth estimate: 50%

Source: Goldman Sachs

24. United Airlines Holdings

Ticker: UAL

Sector: Industrials

Market cap: $16 billion

2021 sales growth estimate: 49%

Source: Goldman Sachs

25. Enphase Energy

Ticker: ENPH

Sector: Information Technology

Market cap: $21 billion

2021 sales growth estimate: 73%

Source: Goldman Sachs

26. Micron Technology

Ticker: MU

Sector: Information Technology

Market cap: $99 billion

2021 sales growth estimate: 29%

Source: Goldman Sachs

27. Skyworks Solutions

Ticker: SWKS

Sector: Information Technology

Market cap: $29 billion

2021 sales growth estimate: 25%

Source: Goldman Sachs

28. Intuit

Ticker: INTU

Sector: Information Technology

Market cap: $105 billion

2021 sales growth estimate: 24%

Source: Goldman Sachs

29. Monolithic Power Systems

Ticker: MPWR

Sector: Information Technology

Market cap: $15 billion

2021 sales growth estimate: 20%

Source: Goldman Sachs

30. Applied Materials

Ticker: AMAT

Sector: Information Technology

Market cap: $107 billion

2021 sales growth estimate: 20%

Source: Goldman Sachs

31. IPG Photonics

Ticker: IPGP

Sector: Information Technology

Market cap: $11 billion

2021 sales growth estimate: 20%

Source: Goldman Sachs

32. International Flavors & Fragrances

Ticker: IFF

Sector: Materials

Market cap: $34 billion

2021 sales growth estimate: 118%

Source: Goldman Sachs

33. Host Hotels & Resorts

Ticker: HST

Sector: Real Estate

Market cap: $12 billion

2021 sales growth estimate: 35%

Source: Goldman Sachs

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