With 2020 now rolling, and the first quarter in full swing, many investors are resetting for what could be a more volatile rest of the year as the ongoing trade issues and geopolitical instability in the Middle East could continue to stir the pot. While the rally of the past three months has been very positive, it still makes sense for investors to find the best possible stock ideas from the top analysts and firms.

One of Wall Street’s most respected list of stocks is the Goldman Sachs Conviction List. These are the firm’s top picks for high net worth and institutional accounts, and they are spread across 10 sectors. We screened the list looking for the companies that had the largest upside to the Goldman Sachs assigned target prices. We found five that more aggressive growth accounts may want to add to portfolios.

[in-text-ad]

BioMarin Pharmaceuticals

This stock is a Wall Street favorite, and the company posted solid earnings last year. BioMarin Pharmaceuticals Inc. (NASDAQ: BMRN) develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. Its product portfolio comprises five approved products and multiple clinical and preclinical product candidates.

Over the past decade, BioMarin has become one of the top orphan drug companies, and it looks poised to stay there.  Roche recently has been mentioned as a company that could be looking at BioMarin. Roche is heavily focused on oncology drugs and invests heavily in early-stage molecules.

The Goldman Sachs price objective for the shares is $159. The Wall Street consensus target price is $115.23. The stocks closed trading on Thursday at $89.58. The upside to the Goldman Sachs target is right at a stunning 77%.

Cheniere Energy

This top liquid natural gas play has made a nice move off the December lows. Cheniere Energy Inc. (NYSE: LNG) is an energy company primarily engaged in liquefied natural gas (LNG) related businesses. The company conducts its business through its subsidiaries, including the development, construction and operation of its LNG terminal business and the development and operation of its LNG and natural gas marketing business.

The LNG terminal segment consists of the Sabine Pass and Corpus Christi LNG terminals. Its LNG and natural gas marketing segment consists of LNG and natural gas marketing activities by Cheniere Marketing, which is developing a portfolio of long-and medium-term sale and purchase agreements with professional staff based in the United States, the United Kingdom, Singapore and Chile.

Goldman Sachs has a price target of $88. That compares with the posted consensus target of $81.43, as well as Thursday’s closing price of $63.25. Hitting the Goldman Sachs target would represent almost a 40% gain.

First Solar

This is a top clean energy pick at Goldman Sachs for 2020. First Solar Inc. (NASDAQ: FSLR) is the largest vertically integrated solar manufacturer in the United States. The company uses a specialized cadmium telluride (thin film) based panel, which is different from most other panels, which are silicon based. First Solar engages in manufacturing and has planned 6GW of capacity by 2020, with revenues increasingly coming from module sales.

First Solar also develops and sells downstream solar projects and has created some of the largest solar installations in the country. While there have been some trade-related concerns, solid earnings should keep a nice tailwind behind the shares. With systems business and module guidance very achievable, this is perhaps the strongest player in the industry.

The strong $81 Goldman Sachs price objective is well above the $69.25 consensus analyst target. The stock closed most recently at $56.70 a share. Hitting the Goldman Sachs target would represent a 42% gain.
[in-text-ad]

LyondellBasell

This top chemical company with a sterling balance sheet is another solid play for conservative investors. LyondellBasell Industries N.V. (NYSE: LYB) manufactures chemicals and polymers, refines crude oil, produces gasoline blending components and develops and licenses technologies for production of polymers. After getting crushed in the late summer, the stock has rallied back nicely.

Over half of earnings are generated in the company’s Olefins and Polyolefins Americas segment, where costs are linked to the price of cheap natural gas in the United States, while selling prices are correlated with the price of oil. The company has pursued a strategy of low-cost, high return on invested capital debottlenecks coupled with cash returns to shareholders.

Note that debottlenecking is the process of identifying specific areas or equipment in oil and gas facilities that limit the flow of product (known as bottlenecks) and optimizing them so that overall capacity in the plant can be increased.

LyondellBasell investors receive an outstanding 4.64% dividend. Goldman Sachs has set its price target at $121, while the posted consensus target was last seen at $102.36. The shares closed at $90.57 on Thursday. Hitting the target price would be a huge 33% gain.

Wingstop

This company has huge upside potential, and with the NFL playoffs in full swing, you can bet the orders will skyrocket. Wingstop Inc. (NASDAQ: WING) operates and franchises more than 1,300 locations worldwide. The company is dedicated to serving the world flavor through an unparalleled guest experience and offering of classic wings, boneless wings and tenders, always cooked to order and hand-sauced-and-tossed in fans’ choice of 11 bold, distinctive flavors. Wingstop’s menu also features signature sides including fresh-cut, seasoned fries and freshly made ranch and bleu cheese dips.

In 2018, Wingstop’s system-wide sales increased 16% year-over-year to $1.3 billion, marking the 15th consecutive year of same-store sales growth, as well as 290% shareholder return, since its 2015 initial public offering. With a vision of becoming a Top 10 Global Restaurant Brand, the company’s system is comprised of independent brand partners who account for more than 98% of Wingstop’s total restaurant count.

The company has been ranked on Franchise Business Review’s “Top 30 Food and Beverage Franchises” (2019), Fast Casual’s “Movers & Shakers” (2019), QSR Magazine’s “The Industry’s 9 Best Franchise Deals” (2019) and “The QSR Top 50” (2019) for limited-service restaurants in the United States.

Investors in Wingstop receive just a 0.48% dividend. The Goldman Sachs price objective is a stunning $140. The consensus target is down at $102.26, and the last trade on Thursday was served up at $91.30. Hitting the price target would be a gigantic 53% gain.

Get Our Free Investment Newsletter

I have read, and agree to the Terms of Use

These five top stocks spread across different sectors offer tremendous upside to the Goldman Sachs price objectives. While there is no guarantee they get there, even moving halfway to the targets would provide very solid gains for investors.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.