Interest
rates
appear
to
have
peaked,
and
growth
stocks
are
an
area
worth
looking
at
right
now,
according
to
Goldman
Sachs.
“As
interest
rates
appear
to
have
peaked,
Pure
Growth
…
offers
exposure
to
duration
while
Stable
Growers
…
is
more
defensive,”
the
investment
bank
wrote
in
a
December
note.
Last
week,
the
U.S.
Federal
Reserve
indicated
there
will
be
three
cuts
coming
in
2024
,
ending
a
cycle
of
11
hikes.
Rate
hikes
have
not
usually
been
good
for
growth
stocks.
Goldman
did
two
stock
screens
for
its
so-called
pure
growth
and
stable
grower
categories.
‘Pure
growth’
Goldman
screened
for
companies
in
the
Stoxx
600
ex-financials
index
using
several
criteria,
including
the
following:
Highest
2023-2025
sales
compound
annual
growth
rate.
Excluding
companies
with
sales
growth
below
the
Stoxx’s
bottom
quartile
in
the
last
three
years.
Tech
stocks
make
up
20%
of
the
stocks,
health
care
16%,
and
industrial
goods
and
services
14%.
These
stocks
turned
up
in
Goldman’s
basket.
Stable
growers
Goldman
screened
for
companies
in
the
Stoxx
600
ex-financials
index.
It
looked
for
companies
with
a
standard
deviation
of
sales
growth
that
is
below
the
50th
percentile
and
sales
growth
likely
to
be
more
than
the
30th
percentile
over
20
years
(from
2006
to
2025).
Industrial
goods
and
services
make
up
20%
of
the
stocks,
while
17%
of
them
come
from
health
care
and
11%
from
technology.
These
stocks
turned
up
in
Goldman’s
basket.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
