Coffee, computer chips and metals companies all figure in a list of 29 "underappreciated" stocks released by Goldman Sachs Friday.
Here’s Goldman’s commentary about some of the buy-rated stocks it says are not receiving their due.
· “Alcoa (AA) - Get Alcoa Corp. Report: Significant leverage to a positive aluminum price outlook … should result in higher earnings and free cash flow generation allowing for deleveraging and capital allocation flexibility to pursue shareholder return.
· Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report: Market share gains in client and server central processing segments augmented by gross margin expansion and operating expenditure leverage should drive positive revisions to near-and medium-term EPS.
· Microsoft (MSFT) - Get Microsoft Corporation (MSFT) Report: Strong presence across all layers of the cloud stack amid a backdrop of accelerating digital transformation spending should drive foreseeable double-digit top line growth and margin expansion. Price increases announced recently should help offset potential margin headwinds. …
· Starbucks (SBUX) - Get Starbucks Corporation Report: Tailwinds from the economic re-opening in the U.S. and abroad, along with the company’s significant scale, market share gains and operational efficiencies should drive strong multi-year earnings power. Management recently noted that cost of goods sold should not be a headwind in FY21/22 from coffee purchasing. …”
Other names on the Goldman list include:
Applied Materials (AMAT) - Get Applied Materials, Inc. Report, Charter Communications (CHTR) - Get Charter Communications, Inc. Class A Report, Chemours (CC) - Get Chemours Co. Report, Cheniere Energy (LNG) - Get Cheniere Energy, Inc. Report, ConocoPhillips (COP) - Get ConocoPhillips Report, Deere (DE) - Get Deere & Company Report, Diamondback Energy (FANG) - Get Diamondback Energy, Inc. Report, EQT (EQT) - Get EQT Corporation Report, Exxon Mobil (XOM) - Get Exxon Mobil Corporation Report, First Quantum Minerals FM.TO, Freeport-McMoRan (FCX) - Get Freeport-McMoRan, Inc. (FCX) Report, Hasbro (HAS) - Get Hasbro, Inc. (HAS) Report, Herc Holdings (HRI) - Get Herc Holdings, Inc. Report,
In addition, it called out Johnson Controls International (JCI) - Get Johnson Controls International plc (JCI) Report, Ovintiv (OVV) , PDC Energy (PDCE) - Get PDC Energy, Inc. Report, Salesforce.com (CRM) - Get salesforce.com, inc. Report, Sherwin-Williams (SHW) - Get Sherwin-Williams Company Report, Suncor Energy (SU) - Get Suncor Energy Inc. Report, Trimble (TRMB) - Get Trimble Inc. Report, United Rentals (URI) - Get United Rentals, Inc. Report, Universal Display (OLED) - Get Universal Display Corporation Report, Waste Connections (WCN) - Get Waste Connections, Inc. Report, Wingstop (WING) - Get Wingstop, Inc. Report and Wyndham Hotels & Resorts (WH) - Get Wyndham Hotels & Resorts, Inc. Report.
Salesforce.com, AMD and Microsoft are holdings in Jim Cramer's Action Alerts PLUS member club.