While 2023 has been far better than last year, many investors looking at monthly statements for the last couple of months may not be all that thrilled with their results so far. There is a simple reason why. If you do not own mega-cap technology, you are probably up for the year, but not big. In fact, while the S&P 500 is up about 8% year to date, just 10 stocks (again dominated by big tech) made up a stunning 95% of the return for 2023.
One of Wall Street’s most respected lists of stocks is the Goldman Sachs Conviction List. These are the firm’s top picks for high net worth and institutional investors 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 three that growth investors may want to add to portfolios.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Bunge
This top mid-cap stock has rallied nicely off the 2022 lows but still offers investors an outstanding entry point. Bunge Ltd. (NYSE: BG) operates as an agribusiness and food company worldwide. It operates in the following segments.
The Agribusiness segment purchases, stores, transports, processes and sells agricultural commodities and commodity products, including oilseeds (primarily soybeans, rapeseed, canola and sunflower seeds) and grains (primarily wheat and corn) and vegetable oils and protein meals. It provides its products for animal feed manufacturers, livestock producers, wheat and corn millers and other oilseed processors, as well as third-party edible oil processing companies, as well as for industrial and biodiesel production.
Its Edible Oil Products segment provides packaged and bulk oils and fats, including cooking oils, shortenings, margarines, mayonnaise and others for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies and other food manufacturers, as well as grocery chains, wholesalers, distributors and other retailers.
The Milling Products segment offers wheat flours and bakery mixes, corn milling products (including dry-milled cornmeals and flours, wet-milled masa and flours, and flaking and brewer’s grits, as well as soy-fortified cornmeal, corn-soy blends, and other products), whole grain and fiber ingredients and milled rice products.
The Sugar and Bioenergy segment produces sugar and ethanol, and it generates electricity from burning sugarcane bagasse. The Fertilizer segment offers nitrogen, phosphate and potassium fertilizers, as well as single super phosphate, ammonia, ammonium thiosulfate, monoammonium phosphate, diammonium phosphate, triple superphosphate, urea, urea-ammonium nitrate, ammonium sulfate and potassium chloride.
Investors receive a 2.80% dividend. Goldman Sachs has a $161 price target for Bunge stock, and the consensus target is just $125.10. As the shares were last seen on Wednesday trading at $89.59, hitting the Goldman Sachs target would be a 78% gain.
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