What trade war?

"The 2.9% U.S. GDP growth our economists forecast for 2018 and 2.2% in 2019 should continue to benefit growth stocks," stresses Goldman Sachs strategist David Kostin. To take advantage, Kostin suggests wading through Goldman's basket of the 50 'VIP' stocks that appear most frequently among the top 10 holdings within hedge fund portfolios. The list has outpaced the S&P 500 by 180 basis points this year (4% vs. 2%). 

The VIP basket also has a good track record of performance. Since 2001, the VIP basket has out-performed the S&P 500 in 63% of quarters, generating an excess return of 58 basis points. Goldman's research findings are derived from the analysis of 848 hedge funds with $2.3 trillion of gross equity positions.

Ten stocks in particular are on Goldman's radar screen from the VIP list, as well as a list of 50 favorite stocks among large-cap mutual fund managers. Companies mentioned below are expected to grow 2019 sales and earnings by at least 6% and 12%, respectively, both ahead of the median S&P 500 firm. 

  1. Adobe (ADBE)
  2. Citigroup (C)
  3. Salesforce (CRM)
  4. Delta Air Lines (DAL)
  5. Fleetcor Technologies (FLT)
  6. Alphabet (GOOGL)
  7. Mastercard (MA)
  8. PayPal (PYPL)
  9. Visa (V)
  10. Wells Fargo (WFC)

Listen to what PayPal's CEO Dan Schulman just told TheStreet.

Citigroup, Alphabet and PayPal are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells C, GOOGL or PYPL? Learn more now.

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