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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?

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World

President Raisi’s death a perilous moment for Iran regime – but don’t expect a change to foreign policy

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President Raisi's death a perilous moment for Iran regime - but don't expect a change to foreign policy

This is a delicate time for Iran. President Raisi was the second most important man in Iran, after Supreme Leader Ayatollah Ali Khamenei.

His death, now confirmed, will have far-reaching consequences.

Although Khamenei has tried to reassure the country in recent hours, the regime will know this is a perilous moment that must be handled carefully.

Live updates – Iranian president killed in crash

There are mechanisms to protect the regime in events like this and the Revolutionary Guard, which was founded in 1979 precisely for that purpose, will be a major player in what comes next.

In the immediate term, vice-president Mohammed Mokhber will assume control and elections will be held within 50 days.

Mokhber isn’t as close to the supreme leader as Raisi was, and won’t enjoy his standing, but he has run much of Khamenei’s finances for years and is credited with helping Iran evade some of the many sanctions levied on it.

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Drone footage of helicopter crash site

Raisi’s successor will most likely be the chosen candidate of the supreme leader and certainly another ultra-conservative hardliner – a shift back to the moderates is highly unlikely.

Likewise, we shouldn’t expect any significant change in Iran’s foreign activities or involvement with the war in Gaza. It will be business as usual, as much as possible.

However, after years of anti-government demonstrations following the death of Mahsa Amini in 2022, this might be a moment for the protest movement to rise up and take to the streets again.

Read more:
Who was hardliner Iranian president Ebrahim Raisi?
‘Butcher of Tehran’ had fearsome reputation – many will fear instability
Hardline cleric Ebrahim Raisi wins landslide victory

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Islamic State may seek to take advantage

There are also many dissident groups inside Iran, including an off-shoot of Islamic State – they might seek to take advantage of this situation.

Raisi became president in 2021 at the second time of asking and only with a turnout of 41%, the lowest since the 1979 revolution.

The president is seen as a frontrunner to replace Iran's Supreme Leader Ayatollah Ali Khamenei (pictured) when he dies. Pic: Reuters
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The president was considered one of the two frontrunners to succeed Ayatollah Ali Khamanei (pictured). Pic: Reuters

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Search crews have reached the site of Iranian President Ebrahim Raisi’s fatal helicopter crash.

He was not a universally popular figure and many inside Iran will celebrate his death.

Consequences for supreme leader

Longer term, Raisi’s death will have consequences for the supreme leader.

He was considered one of the two frontrunners to succeed Ayatollah Ali Khamanei on his death – the other being Khamanei’s son Mojtaba.

For religious and conservative Iranians, Raisi’s death will be mourned; for many though, it will be the passing of a man who had blood on his hands.

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US

Scarlett Johansson ‘shocked and angered’ after OpenAI allegedly recreated her voice without consent

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Scarlett Johansson 'shocked and angered' after OpenAI allegedly recreated her voice without consent

Scarlett Johansson has said she was “shocked” and “angered” after OpenAI allegedly recreated her voice without her consent for a new ChatGPT system.

The actress released a statement where she personally criticised the company’s CEO Sam Altman for insinuating she was the voice named ‘Sky’ by posting the word ‘her’ on X, a reference to a film where she voiced an AI which a human fell in love with.

“Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system,” the 39-year-old Oscar nominee said.

“He told me that he felt that by my voicing the system, I could bridge the gap between tech companies and creatives and help consumers to feel comfortable with the seismic shift concerning humans and AI. He said he felt that my voice would be comforting to people.”

She went on to say that eventually for personal reasons she declined his offer then, nine months later, her attention was drawn to how much the “Sky” voice sounded like her.

“When I heard the released demo, I was shocked, angered and in disbelief that Mr Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference,” Johansson said.

“Mr Altman even insinuated that the similarity was intentional, tweeting a single word “her” – a reference to the film in which I voiced a chat system, Samantha, who forms an intimate relationship with a human.

“Two days before the ChatGPT 4.0 demo was released, Mr Altman contacted my agent, asking me to reconsider. Before we could connect, the system was out there.

More on Artificial Intelligence

“As a result of their actions, I was forced to hire legal counsel, who wrote two letters to Mr Altman and OpenAI, setting out what they had done and asking them to detail the exact process by which they created the ‘Sky’ voice. Consequently, OpenAI reluctantly agreed to take down the ‘Sky’ voice.”

“In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity. I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.”

Sam Altman hero teaser
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Sam Altman

On Monday OpenAI released a statement saying it would “pause” the use of a ChatGPT voice after users noticed it sounded like the actress.

OpenAI said: “We’ve heard questions about how we chose the voices in ChatGPT, especially Sky.

“We are working to pause the use of Sky while we address them.”

Read more:
How the chaos at OpenAI has unfolded
Snapchat flagged in nearly half of child abuse imagery crimes in past year

The artificial intelligence (AI) company offers five voices that can speak generated answers through its ChatGPT service.

Scarlett Johansson’s statement in full

Last September, I received an offer from Sam Altman, who wanted to hire me to voice the current ChatGPT 4.0 system.

He told me that he felt that by my voicing the system, I could bridge the gap between tech companies and creatives and help consumers to feel comfortable with the seismic shift concerning humans and AI.

He said he felt that my voice would be comforting to people.

After much consideration and for personal reasons, I declined the offer.

Nine months later, my friends, family and the general public all noted how much the newest system named “Sky” sounded like me.

When I heard the released demo, I was shocked, angered and in disbelief that Mr Altman would pursue a voice that sounded so eerily similar to mine that my closest friends and news outlets could not tell the difference.

Mr Altman even insinuated that the similarity was intentional, tweeting a single word “her” – a reference to the film in which I voiced a chat system, Samantha, who forms an intimate relationship with a human.

Two days before the ChatGPT 4.0 demo was released, Mr Altman contacted my agent, asking me to reconsider. Before we could connect, the system was out there.

As a result of their actions, I was forced to hire legal counsel, who wrote two letters to Mr Altman and OpenAI, setting out what they had done and asking them to detail the exact process by which they created the “Sky” voice. Consequently, OpenAI reluctantly agreed to take down the “Sky” voice.

In a time when we are all grappling with deepfakes and the protection of our own likeness, our own work, our own identities, I believe these are questions that deserve absolute clarity.

I look forward to resolution in the form of transparency and the passage of appropriate legislation to help ensure that individual rights are protected.

OpenAI earlier denied it intentionally copied Johansson and said it believed “AI voices should not deliberately mimic a celebrity’s distinctive voice”.

The New York Times sued OpenAI at the end of last year over allegations it, and its biggest investor Microsoft, unlawfully used the newspaper’s articles to train and create ChatGPT.

The suit alleges that the AI text model now competes with the newspaper as a source of reliable information and threatens the ability of the organisation to provide such a service.

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UK

Woman killed in dog attack in east London – as police seize two XL bullys

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Woman killed in dog attack in east London - as police seize two XL bullys

A woman has died after a dog attack in a house in east London – with police seizing two XL bullys from the property.

The Metropolitan Police said the victim was a woman in her 50s and the attack happened in Hornchurch on Monday afternoon.

“Police were called to Cornwall Close at around 1.12pm… to reports of a woman attacked by a dog,” a force spokesperson said.

“The woman was treated by medics from London Ambulance Service, but sadly she was pronounced dead at the scene.

“Due to the threat posed, armed officers attended. After assessing the situation, officers were able to safely seize two dogs.

“These were registered XL bully dogs and prior to officers’ arrival had been contained inside a room in the house. They did not leave the house at any time during the incident.

“The family of the woman, who was the owner of the dogs, are being supported by officers.”

The woman died after a dog attack in Cornwall Close, Hornchurch. Pic: Google Street View
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The woman died after a dog attack in Cornwall Close, Hornchurch. Pic: Google Street View

London Ambulance Service sent crews, an incident response officer and a helicopter to the house.

From 1 February, it became a criminal offence to own the XL bully breed in England and Wales without an exemption certificate.

Read more from Sky News:
Parents will ‘never forgive’ nursery worker who killed baby girl
Taxi drivers contacted over missing 23-year-old man

Stock photo of an american bully xl dog Pic: iStock
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File pic: iStock

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Anyone who owns one of the dogs must have had the animal neutered, have it microchipped and keep it muzzled and on a lead in public, among other restrictions.

The government move to ban XL bullys followed a series of attacks on people.

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