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  • Writer's pictureAlpesh Patel

AI Stocks Under the Radar According to Goldmans - My Take

Updated: Nov 15, 2023

Goldman Sachs has a 50-stock portfolio of what they call under-the-radar long-term AI winners. Let's look at them and see what I think of them; we will go through them individually and run through them relatively rapidly.



Pinterest

I'm still determining, and I'll tell you why; for each of these, earnings are forecast to grow while it is undervalued on a discount cash flow basis. Despite those positive fundamentals, I don't like that this is going sideways, and at best, I fear that rather than exploding, it'll do this, which only excites me a little.


New York Times

God, they are so something or other; that's the trend you're looking at. Can it do it? I suspect not, so certainly not one. Despite the so-called discount, cash flow, under-valuation, and earnings to forecast growth news, I agree with Goldman Sachs on this. They used to be called news core, didn't they, or Fox or whatever, and AI is supposed to help them again, not seeing the sort of massive rises that we did before in this period. In 2020, those from now on will probably not be discounted significantly. So I'm not agreeing much with Goldman's on this, and you might say I'll go with Goldman. Thanks mate.

Zoom

Zoom info crashed and burnt after COVID-19; again, there is little evidence on the upside. Although many analysts think it's a buy since it was ipo'd, it's never had a positive September. So if you want to go into it, you should wait till October; in any event, discount and cash flow are alright.


H&R Block

There we go; that's supposed to be the angle we're looking at. Could we get that? I could, but it might be a bit of a journey upwards, so not bad. But certainly, the analysts are not sure. Interestingly, this has come up as one of the Goldman Sachs picks, and you can see it came up as a cell, so it always makes you think. It's one part of Goldman Sachs saying buy, and another part saying sell, or other journalists who are reporting all this are just getting it completely wrong anyway 43.6% undervalued, there you go.


Kohl's

Kohl's had a drop-off again. I'd really need to see that moving sharply higher beforehand; analyst mixed bag as well on this; why would I want to take that kind of risk? We've got a whole load more coming up, so don't go anywhere; by the way, while you're listening to me and I've got you here, check out alpeshpatel.com for a whole load of free tools on trading and beware of people pretending to be me asking you for crypto it isn't me I never ask you for money, okay.


Coupang

So this one is not overbought and is more likely to do this; I don't see that rising up again despite a couple of banks seemingly liking it. Again, undervalued on the discount cash flow base, there are other ways of measuring valuation. What about this? It seems to be slightly beaten down, and I suspect it now. We're going to go sideways for a bit, and the analysts are also mixed on it. Yes, I know it's undervalued, but I'm looking at the next 12 months now; you might say they may be looking for longer.

Amazon

Amazon, you already know I like this, and you know where I'm looking at it going. And while this is similar to a car, it is Amazon. So I'm looking at that kind of a move, and I'm a buyer for this for one year, two years, three years. That's where we are for now, and it's positive.

Lear Corporation

This looks too flat. Has it broken out of this just trade range? No, are they expecting it to go up here? I assume they are if they've said it. But I don't see that I mean anytime soon. Could it? Well, yes, but it's different from what I want to get into now.

Walmart

Walmart, I already like and own, I should disclose. While it's taking a slow move to get up, it will get there. Lots of analysts like it as well. That's my projection. I'm happy to hold it into the future. It's undervalued according to discount and cash flow.


Walgreens Boots Alliance

Walgreens, now you might get into this because you think it's at multi-year lows. That's up to you. I'm not a high-risk investor, thank you very much. So yes, you might get in. But remember, if it's gone to 25, why can't it go to 12? It is undervalued; look at the earnings forecast, yes, yes, yes. Lots recommend it.


Costco Wholesale

With Costco, it's another one that I own. I'm going to pull it up on screen in a second. Costco, that's what I'm expecting. I like it; it's only a little bit undervalued.


Occidental Petroleum

Occidental: I know this is one of Warren Buffett's favorites. It's one that we had and were expecting it to do this and that dropped off, and we had to sell it. Now, it looks like it's going to drift lower. I'm afraid, so not one for me, not one at the moment anyway. Undervalued, not one at the moment, and I'm talking when I say at the moment, I'm talking about how things look over the next 12 months.


Williams Companies

Williams good upward trend could do this, but it's overbought already. So you know where it could go, and it's done it before where it's been at a similar level. Which was over here, and you can see certainly when the stochastics were overbought, it goes up a tiny bit and then drops off. I suspect what, at best, will happen is it'll go up and then drop off, and you'll, for all your effort, not have much to show for it, not very undervalued either.


Kemper Corp

Kemper again sideways. I could be more impressed. I know a lot of the banks like it. But it's down here, and I appreciate it's undervalued. Earnings are forecast to grow, but I will take the risk on something else.


Brown and Brown

You can see I'm quite risk-averse, and you might say, you fool, you should go into Brown and Brown. It does look attractive, and it's probably one of the better ones. The analysts certainly like it. Oh no, look at that overvalued by that much; no, thank you.


First American Financial

Even though it's undervalued, I wasn't getting particularly excited because this seems to be going sideways. So, it doesn't make me sufficiently excited.

Wills Towers Watson

Now, I did look at this one and thought, could it, but then no momentum is down there. If you're wondering what that dotted blue line is, it is the monthly MACD.

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Marsh & McLennan Companies

Marsh McLennan - the world's largest insurance company. You know them well. I'm going to stay away; I'm afraid it's just not doing enough for me.


Fidelity National Finance

What about this one? Could it do that because that's what I'd have to do? Could it do this? We've got a lot of buys, I like that. Undervalued as well. Okay, let's go for it.


Voya Financial

What about Voya? It's going sideways for a bit now; it's going to fall off. It's not one for me; even though it's got a lot of buys, it's only a little undervalued.

International Paper

International Paper downward Trend: I'd need to see this move up a lot more first. I'd like to see a clear break out of that first before I look to get in. It could do that even though it's undervalued, so you should keep an eye on it.


Jones Lang LaSalle

That has a pompous name, and it could do this, of course, but it's premature and early for me at the moment. Again, Goldman Sachs says to sell in April. Now they've turned into a buy, so let's see, undervalued sixty percent according to this now.


Hawaiian Electric Industries

I'm going to run through the others. Do you want to get into it? That's up to you; look nine, it's fallen off a cliff, not one for me. The reason for that is what happened in Hawaii significantly undervalued. Of course, if you like your risk like that, go for it; get the Hawaiian one and then go to Vegas if you wish, but it's not for me.


Tenet Healthcare

This could work out nicely.


DaVita

This is going sideways and could be another one that could work out nicely.


Universal Healthcare

Universal healthcare, no momentum's too down even though that's up. So it's going to go down. It will go even lower; that's undervalued, and you should keep an eye on it.


R1 RCM, Encompass Health, Illumina, Clarivate

I am giving you names, ideas, and thoughts, okay? There you go, no, no, because of the momentum. Even though it's undervalued, no momentum is too low. I don't like it; I want to see that move up. So if you could watch it for later, but for the moment not one for me.


Robert Half and more

Robert Half and again just going sideways for too long, just too speculative, and I don't like speculative. It's not undervalued enough; there's no momentum in the wrong direction, not undervalued enough. I will give this a no as well, as it's overvalued. Alterix definitely does not, and although it's undervalued. Nutanix looks these in a month might look different, but I need more evidence than I'm seeing now, so it's still a no even though it's undervalued.

And yeah, there are a lot of great buys, but I need to see more evidence on it. Even though it's undervalued, they've got quite a few things going right for them. It's not enough things going right in my perspective, and it could all change in a month or two.

I suspect in October, when we revisit this, it'll look very different, but then I'll just wait till then, shouldn't I? Because, again, in a lot of these, the momentum is just beaten back too much, and I'd rather wait than get in too soon.

Accenture

Accenture is one that I like, and I hold there we go. There's the direction overvalued now, but there's more room for it, no. There we go, so you enjoyed all that. Check alpeshpatel.com/links. For more, follow me on my telegram, YouTube, TikTok channel, and LinkedIn.


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