Summary List Placement
On Monday, UK Prime Minister Boris Johnson announced a new roadmap to take Britain out of lockdown, looking to follow Israel into a new, post-vaccine resumption of economic activity.
Britain has one of the most rapid COVID-19 vaccination programs in the world, after Israel and the United Arab Emirates, who are vying for poll position. Strict lockdown measures are still in force in the country, which has one of the highest death rates from the virus globally, but these restrictions will lift in the coming weeks, as greater numbers of the population are innoculated.
UK-listed airlines like budget carrier easyJet are already staging a comeback, gaining 171% in the last three trading days alone, as investors grow optimistic about the prospects for more normal consumption patterns, especially travel.
With mass-vaccination underway in Europe, the United States and elsewhere, investors are starting to turn towards some of those stocks that were worse-hit by the pandemic to capitalize on that economic recovery, Goldman Sachs said.
Sectors like retail, leisure and travel saw demand crippled, as coronavirus spread throughout the Western world, but Goldman said in a note on Monday it expects these stocks to “outperform on the back of a sustained broader macro recovery.”
However, reopening is not as easy as turning on a switch, and economic activity is still 65% lower than pre-covid levels, the note said, lower than the roughly 50% in mid-December. A number of major economies, including Britain, Germany, France and Spain, imposed new lockdowns and restrictions in early January.
The difference between domestic travel, such as restaurant visits, and road traffic, for example and international travel is currently relatively small, with activity levels in both bands taking big hits, to run at around 80% and 58% below normla levels, respectively.
This divergence was much larger in last summer’s shorter reopening phase, when domestic categories staged a stronger recovery to hold just 10% below pre-covid levels, while international travel remained around 60% lower.
“We expect to see a similar pattern as economies reopen during 2021,” the note added.
Now, with vaccination rolling out and as some of the world’s largest economies reopen, a lot of these market laggards have the opportunity to catch-up with some of the market-leading pandemic beneficiaries.
These are the 38 companies that Goldman Sachs lists as a “buy”, based on their potential in the post-lockdown economic recovery.
1. Airbus
Ticker: AIR: PA
Sector: Aerospace and Defence
% Upside: 47%
Market cap: €70.64 billion
Source: Goldman Sachs
2. Rolls-Royce
Ticker: RR.L
Sector: Aerospace and Defence
% Upside: 15%
Market cap: €5.57 billion
Source: Goldman Sachs
3. Amadeus IT Group
Ticker: AMA.MC
Sector: Business Services
% Upside: 22%
Market cap: €23.20 billion
Source: Goldman Sachs
Source: Goldman Sachs
4. Eurazeo
Ticker: EURA.PA
Sector: Business Services
% Upside: 13%
Market cap: €4.41 billion
Source: Goldman Sachs
5. Elis SA
Ticker: ELIS.PA
Sector: Business Services
% Upside: 19%
Market cap: €2.95 billion
Source: Goldman Sachs
6. ISS
Ticker: ISS.CO
Sector: Business Services
% Upside: 50%
Market cap: €2.65 billion
Source: Goldman Sachs
7. Prosegur Group
Ticker: PSG.MC
Sector: Business Services
% Upside: 52%
Market cap: €1.46 billion
Source: Goldman Sachs
8. Prosegur Cash
Ticker: CASHP.MC
Sector: Business Services
% Upside: 65%
Market cap: €1.14 billion
Source: Goldman Sachs
9. Diageo
Ticker: DGE.L
Sector: Consumer Products
% Upside: 12%
Market cap: €82.17 billion
Source: Goldman Sachs
10. Pernod Ricard
Ticker: PERP.PA
Sector: Consumer Products
% Upside: 6%
Market cap: €43.5 billion
Source: Goldman Sachs
11. Carlsberg
Ticker: CARLb.CO
Sector: Consumer Products
% Upside: 7%
Market cap: €20.36 billion
Source: Goldman Sachs
12. Coca-Cola HBC AG
Ticker: CCH.L
Sector: Aerospace and Defence
% Upside: 16%
Market cap: €9.83 billion
Source: Goldman Sachs
13. adidas
Ticker: ADSGn.DE
Sector: General Retail
% Upside: 13%
Market cap: €59.54 billion
Source: Goldman Sachs
14. Hennes & Mauritz
Ticker: HMb.ST
Sector: General Retail
% Upside: 14%
Market cap: €31.01 billion
Source: Goldman Sachs
15. LVMH Moet-Hennessy Louis Vuitton
Ticker: LVMH.PA
Sector: Luxury Retail
% Upside: 5%
Market cap: €268.97 billion
Source: Goldman Sachs
16. Richemont
Ticker: CFR.S
Sector: Luxury Retail
% Upside: 3%
Market cap: €45.44 billion
Source: Goldman Sachs
17. Swatch Group
Ticker: UHR.S
Sector: Luxury Retail
% Upside: 22%
Market cap: €12.38 billion
Source: Goldman Sachs
18. RELX Plc
Ticker: REL.L
Sector: Media & Internet
% Upside: 33%
Market cap: €42.05 billion
Source: Goldman Sachs
19. WPP Plc
Ticker: WPP.L
Sector: Media & Internet
% Upside: 11%
Market cap: €12.20 billion
Source: Goldman Sachs
20. Publicis
Ticker: PUBP.PA
Sector: Media & Internet
% Upside: 10%
Market cap: €10.77 billion
Source: Goldman Sachs
21. ITV Plc
Ticker: ITV.L
Sector: Media & Internet
% Upside: 9%
Market cap: €5.01 billion
Source: Goldman Sachs
22. EssilorLuxottica
Ticker: ESLX.PA
Sector: MedTech
% Upside: 16%
Market cap: €60.13 billion
Source: Goldman Sachs
23. Total SE
Ticker: TOTF.PA
Sector: Oil
% Upside: 26%
Market cap: €95.97 billion
Source: Goldman Sachs
24. BP Plc
Ticker: BP.L
Sector: Oil
% Upside: 60%
Market cap: €61.47 billion
Source: Goldman Sachs
25. ENI
Ticker: ENI.MI
Sector: Oil
% Upside: 15%
Market cap: €32.76 billion
Source: Goldman Sachs
26. Repsol
Ticker: REP.MC
Sector: Oil
% Upside: 26%
Market cap: €14.13 billion
Source: Goldman Sachs
27. Unibail-Rodamco-Westfield
Ticker: URW.AS
Sector: Real Estate
% Upside: 22%
Market cap: €9.99 billion
Source: Goldman Sachs
28. British Land
Ticker: BLND.L
Sector: Real Estate
% Upside: 29%
Market cap: €4.91 billion
Source: Goldman Sachs
29. Derwent London
Ticker: DLN.L
Sector: Real Estate
% Upside: 29%
Market cap: €4.02 billion
Source: Goldman Sachs
30. Colonial Inmobiliaria
Ticker: COL.MC
Sector: Real Estate
% Upside: 26%
Market cap: €3.96 billion
Source: Goldman Sachs
31. Vinci
Ticker: SGEF.PA
Sector: Transport and Infrastructure
% Upside: 18%
Market cap: €47.15 billion
Source: Goldman Sachs
32. IAG
Ticker: ICAG.L
Sector: Transport and Infrastructure
% Upside: 20%
Market cap: €9.03 billion
Source: Goldman Sachs
33. ACS
Ticker: ACS.MC
Sector: Transport and Infrastructure
% Upside: 32%
Market cap: €7.68 billion
Source: Goldman Sachs
34. Flughafen Zurich
Ticker: FHZN.S
Sector: Transport and Infrastructure
% Upside: 45%
Market cap: €4.19 billion
Source: Goldman Sachs
35. Whitbread
Ticker: WTB.L
Sector: Travel and Leisure
% Upside: 4%
Market cap: €7.82 billion
Source: Goldman Sachs
36. WH Smith
Ticker: SMWH.L
Sector: Travel and Leisure
% Upside: 21%
Market cap: €2.48 billion
Source: Goldman Sachs
37. Autogrill SpA
Ticker: AGL.MI
Sector: Travel and Leisure
% Upside: 35%
Market cap: €1.22 billion
Source: Goldman Sachs
38. Elior Group SA
Ticker: ELIOR.PA
Sector: Travel and Leisure
% Upside: 21%
Market cap: €1.08 billion
Source: Goldman Sachs
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Originally published at https://www.businessinsider.com/stocks-to-buy-cheap-picks-reopening-trade-upside-goldman-sachs-2021-2 on .
