The clouds are gathering on the global economic horizon. In a clear sign that the good times of easy money are well and truly over, last week three major central banks – the US Federal Reserve, the Bank of England, and the Swiss National Bank – all enacted interest rate increases. For the Federal Reserve, it was a 0.75% hike, the largest bump since 1994, in reaction to news that the year-over-year inflation rate had reached a 40+ year high of 8.6%.
So, how can investors ride out this hostile environment?
One simple answer is, turn to the experts. The major investment banks employ cadres of experienced, professional stock analysts, who scour the markets looking for the larger patterns, and also looking for the individual stocks that will stand out.
Goldman Sachs, the Wall Street giant, has had its analyst corps doing just that. They’ve been pointing out stocks that stand to show considerable gains going forward, even as the general market forecasts decline. We’ve used TipRanks’ database to sort through some of the Goldman picks, and have found 3 that the firm believes will bring over 40% return over the coming year. Here are the details, along with the Goldman commentary.
Global-e Online (GLBE)
The first Goldman pick we’ll look at is Global-e Online, an international e-commerce tech firm. Global-e operates an online platform that facilitates direct-to-consumer online commerce in the cross-border markets. The platform allows merchants to smooth out tax and customs differences between sellers and buyers, and lets retailers streamline their international customers’ online shopping in over 200 local markets, adapting to differences in languages, currencies, shipping, and regulatory authorities. The company works with enterprise customers in the US, European, and Asian markets.
Global-e made good use of last year’s bull market. In May 2021, Global-e raised $431 million in its IPO. The stock closed its first day’s trading at $25.50 and has seen volatile trading since then, peaking at $81 in September and falling 70% this year alone.