Read previewMidsize stocks are an investment straight out of the "Goldilocks and the Three Bears story," and Goldman Sachs believes they're destined for a fairy-tale ending.
Goldman Sachs suspects that a reversal is coming as mid-cap earnings top those of large caps.
And while small caps should post even higher earnings growth next year, that cohort is filled with unprofitable companies, Ma noted.
"Low-quality segments of the market, such as small caps, will likely remain pressured at these levels due to weak balance sheets and low profitability."
Below are 25 mid-cap stocks in the S&P 400 that Goldman Sachs spotlighted due to their solid balance sheets, double-digit expected earnings growth for 2025, above-average sales growth, and cheap valuations based on their forward earnings multiple versus their five-year median.
Persons:
—, Goldman Sachs, Jenny Ma, Ma, they've, Goldman
Organizations:
Service, Business, Federal Reserve