Investors are always on the lookout for untapped opportunities, especially in stocks that have been heavily discounted and now present promising opportunities for those prepared to wager on a recovery.
As the new year looms, a seasoned strategy, known as the Laggards trade, is witnessing a revival.
In its recent analysis, Goldman Sachs has shone a light on stocks that have trailed the broader market significantly on a year-to-date basis. Despite their underperformance, these Buy-rated securities hold considerable potential for robust gains in the upcoming year.
Laggards can often represent contrarian investment opportunities, as they may not have garnered bullish sentiment from investors yet, or the prevailing analyst consensus might be so low that even minor positive changes in fundamentals could result in significant performance gains.
The Laggard Phenomenon: The year 2023 has been a turbulent one for many stocks, with some sectors witnessing declines reminiscent of the tumultuous years of 2007 and 2020. However, history suggests a silver lining the laggards of one year often emerge as leaders in the first quarter of the next.
Goldman Sachs equity strategists, Deep Mehta and Tarun Lalwani, CFA, explained that despite a 37% YTD underperformance relative to the S&P 500 index, 2023s laggards could be next years leaders, as the market rally in November suggests signs of an early reversal.
Sector Shift: This years laggards differ from those of 2022, with Healthcare, Financials, and Industrials taking the lead. These stocks align with several key investment themes: low financial returns, lower quality scores, affordable valuations, and high growth prospects.Goldman Sachs Unveils 5 Clusters Of Stocks In The Laggards Trade
1) Laggards with Differentiated Bullish Views: These are Buy-rated stocks by Goldman Sachs analysts, who hold a contrarian opinion compared to less than half of Wall Street analysts. They have at least a 10% upside potential. Some of the stocks included in this group are as follows: Moderna Inc. MRNA : Upside to target 189%, YTD underperformance vs. S&P 500 -75% Pfizer Inc. PFE : Upside to target 66%, YTD underperformance vs. S&P 500 -63% Enphase Energy Inc. ENPH : Upside to target 48%, YTD underperformance vs. S&P 500 -79% Loading… Loading…
2) Laggards with Consensus-Defying Estimates: These stocks have Goldman Sachs estimates that significantly diverge from the consensus, suggesting a potential surprise factor. Highlighted below are some key stocks within this group: Darling Ingredients Inc. DAR : Upside to target 86%, YTD underperformance vs. S&P 500 -47% Shoals Technologies Group SHLS : Upside to target 89%, YTD underperformance vs. S&P 500 -60% ANGI Homeservices Inc. ANGI : Upside to target 84%, YTD underperformance vs. S&P 500 -16%
Read also: Will Novembers Turkey Rally Set Stage For Decembers Santa Claus Rally For Stocks?
3) Growth at Reasonable Valuations: These are Buy-rated laggards projected to have double-digit topline growth in 2024 and 2025, with a Price-Earnings-Growth ratio below 1.0. Included in this group are the following notable stocks: Array Technologies Inc. ARRY : Upside to target 89%, YTD underperformance vs. S&P 500 -60% First Solar Inc. FSLR : Upside to target 72%, YTD underperformance vs. S&P 500 -13%
4) Laggards with Rebounding Margins: These stocks are expected to show positive sales growth and improving operating margins in 2024 compared to 2023. The following represents a selection of stocks categorized in this group: Bath & Body Works Inc. BBWI : Upside to target 45%, YTD underperformance vs. S&P 500 -39% Sensata Technologies Holding ST : Upside to target 45%, YTD underperformance vs. S&P 500 -37%
5) Laggards with Superior CROCI: These are stocks with a consistent Cash Return on Capital Invested (CROCI) greater than the Weighted Average Cost of Capital (WACC), indicating efficient capital use and profitability. Key stocks within this group are listed below: Aptiv PLC APTV : Upside to target 52%, YTD underperformance vs. S&P 500 -29% Bristol-Myers Squibb Co. BMY : Upside to target 38%, YTD underperformance vs. S&P 500 -50%
Read now: Golds Record High: Why Havent Gold Miners Followed Suit?
Davina McCall’s partner has said she is out of surgery after undergoing an operation to remove a brain tumour.
The 57-year-old television presenter had revealed in a video posted on Instagram earlier today she had a benign brain tumour, a colloid cyst, which she described as “very rare”.
She said the chances of having it were “three in a million,” and she had discovered it a few months ago, after a company offered her a health scan in return for giving a menopause talk.
She also announced she would be having the surgery this evening.
Now her partner – hairdresser Michael Douglas – has posted on social media to say the operation went well.
He said: “Hey all. Davina is out of surgery and according to the surgeon it was textbook! She’s currently recovering in ICU as a precaution, as you can imagine she’s utterly exhausted.
“Thanks so much for all the love from everyone on here… it’s powerful stuff, we are super grateful.”
McCall earlier said the tumour’s discovery came as a shock.
She said: “I slightly put my head in the sand for a while, and then I saw quite a few neurosurgeons, I got lots of opinions. I realised that I have to get it taken out.”
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McCall described it as “big”, 14mm wide, adding: “It needs to come out, because if it grows it would be bad.”
She explained that she would have it removed via a craniotomy, describing the procedure: “They go through the top of my head here and through the two halves of my brain to the middle.
“They get the cyst, take it out, empty it, and Bob’s your uncle.”
She added before the surgery: “Say a prayer for me, I am in good spirits.”
She said she would be in hospital “for around nine days”, but during her recovery, she would be “off my phone for a while”.
Joking and smiling, she urged fans “not to worry about me”, admitting, “I’m doing that enough!”
She went on to counter that, explaining: “I’m not worrying too much, and I am in a good space, and I have all the faith in the world in my surgeon and his team, and I’m handing the reins over to him. He knows what he’s doing, and I’m going to do the getting better bit after.”
She signed off saying, “see you on the other side”.
What is a benign brain tumour?
According to the NHS website, a benign (non-cancerous) brain tumour is a mass of cells that grows relatively slowly in the brain.
They are unlikely to spread, but are still serious and can be life-threatening.
When successfully removed, a tumour will not usually return at all, but if it cannot be completely removed it may grow back, and so will be monitored using scans or treated with radiotherapy.
Many people return to normal activities following successful surgery, but some are left with persistent problems, such as seizures and difficulties with speech and walking.
Non-cancerous brain tumours are more common in people over the age of 50, and symptoms include headaches, blackouts, behavioural changes and loss of consciousness.
Davina McCall says her tumour is a colloid cyst – which is made up of a gelatinous material. Symptoms can include headache, vertigo, memory deficits, diplopia, behavioural disturbances, and in extreme cases, sudden death.
Celebrity friends were quick to send their support, with stars including Rylan, Alan Carr and Holly Willoughby sending love.
According to the NHS, non-cancerous brain tumours are slow-growing and unlikely to spread, but are still serious and can be life-threatening.
McCall rose to fame presenting on MTV in the mid-1990s, and later on Channel 4’s Streetmate, before becoming a household name as the host of Big Brother from 2000 to 2010.
She’s gone on to present programmes across the networks, and currently presents ITV dating show My Mum, Your Dad.
Last year, McCall was appointed Member of the Order of the British Empire (MBE) in the 2023 Birthday Honours for services to broadcasting.
In recent years, McCall has spoken regularly on women’s health and the effects of menopause in a bid to break taboos around the subject. Her 2022 book, Menopausing, won book of the year at the British Book Awards.
The same year, McCall fronted the Channel 4 documentary Davina McCall: Sex, Mind And The Menopause, and told the BBC that the perimenopausal symptoms caused her difficulties multi-tasking and she considered that she had a brain tumour or Alzheimer’s disease at the time.
The presenter has previously raised money for Cancer Research UK by running for Race For Life in honour of her late sister, Caroline Baday, who died from lung cancer in 2012 at the age of 50.
Married twice, McCall has three children, two daughters and a son, with her second husband, presenter Matthew Robertson.
She has lived with Douglas since 2022, and they present a weekly lifestyle podcast together, Making The Cut.
McCall explained it “needed to come out, because if it grows it would be bad,” and described a procedure called a craniotomy which would remove the cyst through the top of her head.
The former Big Brother host said she was “in good spirits,” and would be in hospital “for around nine days” following the procedure.
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Davina McCall diagnosed with rare brain tumour.
It’s not clear on which day McCall’s surgery is scheduled, or if she has had the procedure yet.
Quick to share his love with the 57-year-old star, presenter Rylan wrote: “We’re all thinking of you beautiful,” while comedian Alan Carr wrote: “Big love my darling!!”
Ex-This Morning presenter Holly Willoughby wrote: “I’m sending you all the love and then a whole lot more,” and singer Ashley Roberts added: “All the love gorgeous one!! Sending all the healing vibes. Love you!!”
Former Popstars judge and presenter Nicki Chapman wrote: “You and I have chatted about this day… you are in amazing hands with your surgeon and the team. Everyone loves you.
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“Thank you for not only being a brave girl but for sharing your condition. You will help sooooo many other people. big hugs. 30-second rule. See you soon N xx.”
Actress and chef Lisa Faulkner wrote: “Sending all my love to you. Best wishes and all positive prayers for a speedy recovery”.
McCall’s current partner, hairdresser Michael Douglas, has said he will be sharing updates from her account while she is “off-grid” and recovering, assuring fans the presenter is “in great shape and in very good hands”.
Other celebrities to share positive thoughts included Stacey Dooley, Donna Air, Helen Skelton, Denise Van Outen and Kimberly Wyatt.
McCall rose to fame presenting on MTV in the mid-1990s, and later on Channel 4’s Streetmate, before becoming a household name as the host of Big Brother from 2000 to 2010.
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She’s gone on to present programmes across the networks, and last year was appointed Member of the Order of the British Empire (MBE) in the 2023 Birthday Honours for services to broadcasting.
She has three children with her second husband, presenter Matthew Robertson.
Conan O’Brien has been announced as the host of next year’s Oscars.
It’s the Emmy Award-winning comedian’s first time heading up the ceremony, which is Hollywood‘s most high-profile showbiz event.
“America demanded it and now it’s happening: Taco Bell’s new Cheesy Chalupa Supreme. In other news, I’m hosting the Oscars,” O’Brien said in a statement.
He also shared a spoof short video on social media, showing him clasping an Oscar statuette and thanking the Academy for his Oscar, before clarifying he was hosting the show rather than receiving an award.
The 61-year-old TV presenter, writer, producer and comedian is best known for hosting the late-night talk shows Late Night with Conan O’Brien, The Tonight Show with Conan O’Brien and Conan.
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Before fronting his own self-named shows, he wrote for the enormously popular US late-night sketch show Saturday Night Live and the long-running satirical cartoon The Simpsons.
Between 2019 and 2021 the Oscars went without a main presenter.
Oscars executive producers Raj Kapoor and Katy Mullan said in a statement: “Conan has all the qualities of a great Oscars host, he is incredibly witty, charismatic and funny and has proven himself to be a master of live event television.
“We are so looking forward to working with him to deliver a fresh, exciting and celebratory show for Hollywood’s biggest night.”
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