In fact, the S & P 500 is currently at about the same valuation Goldman Sachs expected it to end 2024. Weak pricing power Another trade is owning businesses with weak pricing power. "During periods of improving profitability, investors often reduce the scarcity premium assigned to strong pricing power stocks, and firms with less pricing power and more variable profit margins typically outperform." Some companies with weak pricing power include Freshpet , according to a Goldman Sachs stock screen. Own consumer staples Meanwhile, consumer staples are at an attractive valuation compared to utilities.

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Persons: Goldman Sachs, David Kostin, Kostin, Russell, what's, TD Cowen, Roblox, D.R, Consumer Staples, Tyson Organizations: CNBC, Survey, WisdomTree, Hertz Global Holdings, Consumer, Utilities, Tyson Foods, Pilgrim's Locations: Horton , Texas