GS likes APC in 2000:
Goldman Sachs U.S. Investment Research Picks Favorite Stocks for the Year 2000
NEW YORK--(BUSINESS WIRE)--Jan. 4, 2000--Goldman, Sachs & Co.
U.S. Investment Research today announced its list of favorite stocks
for the year 2000. The list includes the favorite stock picks of the
Goldman Sachs analysts from their respective industries.
Greg Ostroff, managing director and director of US investment
research at Goldman Sachs, said, "We are pleased to present our list
of favorite stocks for the year ahead. We hope our clients will find
the most attractive names we have to offer on the list to suit their
own investment perspectives and styles.
"Within the turbulent market environment in 1999, our list of our
favorite stocks for 1999 delivered strong absolute and relative
performance, appreciating 41 percent, or 22 percentage points ahead of
the S&P 500. Looking at the year ahead, the momentum of the U.S.
economy remains favorable. Furthermore, we expect stock prices to
reach new highs, although the gains should be more moderate than in
recent years, with the S&P 500 entering the new year at roughly fair
value. Stock selection based on strong company fundamentals will be a
critical factor determining portfolio performance," Mr. Ostroff
concluded.
The Goldman Sachs favorite stocks 2000 list, which is not
intended to be used in its entirety, is comprised of 89 names compared
with 79 in 1999, reflecting expanded industry coverage. The favorite
picks are classified according to style and size characteristics.
The expected 12-month price return of Goldman Sachs favorite
stocks 2000 list is 35 percent compared with an expected price gain of
four percent for the S&P 500. The style and size of the 2000 list is
skewed more toward growth stocks and, to a lesser extent, is more
biased toward large-capitalization names than was the case last year.
Four of every five names on the list for 2000 are growth stocks, and
roughly half are large-cap names. Other principal characteristics of
the favorite stock list for 2000 include:
- The expected earnings growth is 24% compared with 8% for the
S&P 500.
- The average expected longer-term earnings growth rate is 21%
versus 8% for the S&P 500.
- The average 2000 P/E is 25 times versus 27 for the S&P 500.
- The average P/E to long-term earnings growth ratio is 1.3
compared with 3.6 for the S&P 500.
- The dividend yield is 0.9% versus 1.2% for the S&P 500.
- Large-cap stocks (market cap of more than $8 billion) account for
54% of the names on Goldman Sachs' 2000 favorite stocks list,
mid-cap stocks (between $2 billion and $8 billion) 26%, and
small-cap stocks (below $2 billion) 20%.
- Eighty percent of the names for 2000 are defined as growth stocks
(expected earnings growth rate significantly greater than the
average company) and 20 percent as value stocks (trading at a
discount to the local market, i.e., on a P/E or P/B basis, and/or
having expected earnings growth that is equal to or less than the
average company).
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Favorite Stocks for 2000
Company Name Ticker
Adelphia Commun. ADLAC
AES Corp AES
Agilent Technologies A
Allied Riser ARCC
Amdocs DOX
Amer Int'l Group AIG
Anadarko Petroleum APC
AOL AOL
Aptar Group ATR
AXA Financial AXF
BEA Systems BEAS
Bestfood BFO
Caterpillar CAT
Cintas CTAS
CISCO CSCO
Clear Channel Comm CCU
CNF Transportation CNF
Cousins Properties CUZ
Crown Castle TWRS
CVS CVS
DoubleClick DCLK
Dow Jones DJ
Dupont DD
Ecolab ECL
Edison International EIX
Equitable Resources EQT
Exodus EXDS
Exxon Mobil XOM
Firstar FSR
Ford Motor Co F
GAP, Inc. GPS
Hanover Compressor HC
Harrah's Entertainment HET
IBM IBM
InsWeb INSW
Kimberly-Clark KMB
Kinder Morgan KMI
Kohl's Corp KSS
Lexmark LXK
Linear Technologies LLTC
Marriott Int'l MAR
MBNA KRB
MCI WorldCom WCOM
Medimmune MEDI
MedQuist MEDQ
Medtronic MDT
Merck MRK
Merrill Lynch MER
Metals USA MUI
Micromuse MUSE
Modis Professional Services MPS
Newfield Exploration NFX
Newmont Mining NEM
Nextel Commun NXTL
Nextlink NXLK
NTL Inc. NTLI
Owens-Corning OWC
Parametric Technology PMTC
Paychex PAYX
PepsiCo PEP
Phelps Dodge PD
Philip Morris MO
PMC-Sierra PMCS
Polo Ralph Lauren RL
Republic Services RSG
Royal Caribbean RCL
Safeway SWY
Sapient SAPE
Seagram VO
SFX Entertainment SFX
SkyWest SKYW
Solectron SLR
Spieker Properties SPK
StanCorp SFG
Staples, Inc. SPLS
Starbucks Corp SBUX
Tellabs TLAB
TenFold Corp TENF
Teradyne TER
TMP Worldwide TMPW
Tyco TYC
United Health Group UNH
United Rentals URI
United Technologies UTX
W.W. Grainger GWW
Webvan WBVN
Weyerhaeuser WY
Whirlpool WHR
ZDNet ZDZ
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