Growth-oriented stocks tumbled throughout the first half of the year, but now they appear to be reversing, and Goldman Sachs has it eye on several names that could be set up to thrive in the next bull run. A spike in Treasury yields to start the year sent growth stocks down at first. Rising rates make future profits, like those promised by growth companies, less attractive. Stocks seemed to find a bottom in June, however, and have been inching higher with investors embracing the idea that inflation has peaked and that the Federal Reserve may slow the pace of its interest rate hikes. Still, many investors continue to speculate on the likelihood that stocks will turn lower again before reversing meaningfully. The tech-heavy Nasdaq Composite rose 12.4% in July, but is still down 20% for the year and is 21% off its record. For others looking for opportunities on the way back up, Goldman Sachs has highlighted several. All of them are expected to post sales growth of more than 20% this and next year as well as positive earnings in the fourth quarter of 2022. They’re also cheap, based on their enterprise value-to-sales ratio. Here are 10 of the stocks: Information technology and health-care stocks dominate the list. Lyft is one of the largest stocks by market cap in the list. It’s down about 53% for the year but is expected to post sales growth of 32% this year. It has the lowest enterprise value-to-sales ratio of stocks on the list at 0.9. On the flip side, health company OptimizeRx has a high enterprise value-to-sales ratio at 3.9. It’s down 72.7% for the year. Auto comparison site CarGurus is forecast to grow sales 119% this year, and 37.7% in 2023. It’s down 29% for the year. Riot Blockchain , the bitcoin mining company, has an EV/sales ratio of 1.5. It’s expected to grow sales this year by 54.3%. Vital Farms , Cano Health , Zynex , Rover Group , PubMatic and NeoGames are also on the list.
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