11 Compounder opportunities according to Goldman: AMD, BDX, INFA

Goldman Sachs analysts highlighted 11 buy-rated companies that offer a combination of quality characteristics.

These stocks have consistent topline growth of at least mid-single digit percentage in each of their 2024 through 2026 estimates; operating margin expansion in the form of EBIT growth outpacing sales growth; positive and expanding GAAP net income margins; and solid or improving cash return on capital invested, said Deep Mehta, vice president at Goldman Sachs, in a tactical research note.

The following are buy-rated “laggards” with at least 10% upside to their price targets, strong sales growth, EBIT/net income margin expansion, and solid cash return on capital invested (or CROCI).

• Advanced Micro Devices (AMD) – CROCI for 2025: 58%; EBIT growth for 2025: 73%; Upside to target: 23%
• Becton Dickinson & Co. (BDX) – CROCI for 2025: 9%; EBIT growth for 2025: 14%; Upside to target: 23%
• BioMarin Pharmaceuticals (BMRN) – CROCI for 2025: 15%; EBIT growth for 2025: 73%; Upside to target: 101%
• Globant SA (GLOB) – CROCI for 2025: 66%; EBIT growth for 2025: 20%; Upside to target: 13%
• Informatica (INFA) – CROCI for 2025: 15%; EBIT growth for 2025: 11%; Upside to target: 41%
• Intuit (INTU) – CROCI for 2025: 33%; EBIT growth for 2025: 14%; Upside to target: 26%
• Lam Research (LRCX) – CROCI for 2025: 46%; EBIT growth for 2025: 27%; Upside to target: 23%
• Merck & Co. (MRK) – CROCI for 2025: 19%; EBIT growth for 2025: 22%; Upside to target: 33%
• Monster Beverage (MNST) – CROCI for 2025: 30%; EBIT growth for 2025: 16%; Upside to target: 13%
• Teradyne (TER) – CROCI for 2025: 25%; EBIT growth for 2025: 48%; Upside to target: 31%
• Workday (WDAY) – CROCI for 2025: 29%; EBIT growth for 2025: 25%; Upside to target: 17%