Goldman Sachs Lists Two Stocks As ‘Strong Buy’
The S&P 500’s recent surge past 5,300, exceeding many experts’ year-end forecasts, has sparked valid concerns among investors about potential market overheating. Goldman Sachs’ chief U.S. equity strategist, David Kristin warns that the combination of elevated stock valuations and tepid GDP and earnings growth projections for 2024 might limit further market advancements. Despite these conservative views, Goldman Sachs analysts have spotlighted two U.S. stocks with substantial upside potential, labelling them as strong buys.
Fulcrum Therapeutics [FULC]
Fulcrum Therapeutics is at the forefront of developing treatments for genetically defined diseases. This includes ones with severe symptoms and high unmet medical needs. The firm’s proprietary FulcrumSeek platform identifies drug targets to modulate gene expression, aiming to alleviate symptoms and modify disease progression.
Leading Drug Candidate
Fulcrum’s primary candidate, losmapimod, is undergoing a Phase 3 trial for facioscapulohumeral muscular dystrophy [FSHD], with 260 patients enrolled across North America and Europe. Early Phase 2 results showed promising improvements in functional, structural, and patient-reported outcomes. Additionally, the toppling data is expected by year end.
Strategic Partnership with Sanofi
Fulcrum’s recent collaboration with Sanofi is significant. Sanofi paid $80 million upfront for exclusive commercialization rights outside the U.S. This comes with potential milestone payments and royalties of up to $975 million. This partnership enhances Fulcrum’s financial and developmental capacity, positioning it for future success.
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Marex Group [MRX]
Marex Group, on the other hand, is a global broker-dealer offering market access, liquidity, and infrastructure services to over 4,000 clients. This includes commodity producers, asset managers as well as large banks. The firm’s major revenue segments are Agency and Execution and Clearing, accounting for 46% and 28% of annual revenue, respectively.
Successful IPO and Financial Growth of this U.S. Stock
In April, Marx raised around $292 million through its IPO, listing at $19 per share. The company further reported $1.245 billion in revenues for 2023, a 75% increase from the previous year, with a before-tax profit of $197 million. Furthermore, Goldman Sach’s 5-star analyst Alexander Blostein predicts a strong future for Marex, with an average EPS growth of 20% through 2026. He expects annual revenue growth of 13%, driven by market share gains and expansion into new geographic areas. This includes Prime Brokerage Services and APAC markets.
While broader market growth might be constrained, Fulcrum Therapeutics and Marex Group offer compelling investment opportunities with substantial upside potential.
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