Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says

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Without a doubt, 2020 will go down in history as one of the most perplexing intervals for investors.

Despite a global pandemic that’s still unfolding, 8.4% unemployment, a 33% (annualized) drop in GDP, and an economy that’s running at a fraction of its normal capacity, stocks have soared. In fact, since bottoming out in late March, the S&P 500 has climbed over 50%. 

That’s creating some disconnects. 

In a recent note, Bank of America displayed various measures of valuation juxtaposed against historical norms. Clearly, the vast majority of market gauges are trading on the loftier side of history.

Nevertheless, Jonathan Golub, the chief equity strategist at Credit Suisse, thinks opportunities are afoot. In a recent note, he highlighted stocks that offer a compelling blend of reasonable valuations and attractive growth prospects.

“While the growth rates and margins of these 30 stocks tend to be a bit lower than the highfliers, their multiples are substantially more attractive,” he said.

He added: “We highlight those companies that deliver the most attractive trade-off between fundamentals and valuations.”

Golub’s picks have a median sales growth of 16.7% and median earnings-per-share growth of 27.0%. To put those figures in perspective, the median sales growth and earnings-per-share growth of a stock within the S&P 500 is 2.8% and 6.3%, respectively.

Here are the 30 stocks the Golub handpicked that look the most attractive. The picks are listed in alphabetical order.

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1. Aspen Technology

Ticker: AZPN

Sales growth: 19.8%

Earnings-per-share growth: 27.4%

Source: Credit Suisse Securities

2. Bristol-Myers Squibb

Ticker: BMY

Sales growth: 20.7%

Earnings-per-share growth: 22.3%

Source: Credit Suisse Securities

3. Coherent

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Ticker: COHR

Sales growth: 16.0%

Earnings-per-share growth: 130.9%

Source: Credit Suisse Securities

4. CommVault Systems

Ticker: CVLT

Sales growth: 2.9%

Earnings-per-share growth: 12.7%

Source: Credit Suisse Securities

5. Dropbox

Ticker: DBX

Sales growth: 11.9%

Earnings-per-share growth: 26.6%

Source: Credit Suisse Securities

6. Etsy

Ticker: ETSY

Sales growth: 28.9%

Earnings-per-share growth: 32.8%

Source: Credit Suisse Securities

7. Freeport-McMoRan

Ticker: FCX

Sales growth: 16.4%

Earnings-per-share growth: 494.9%

Source: Credit Suisse Securities

8. Fortinet

Ticker: FTNT

Sales growth: 15.9%

Earnings-per-share growth: 15.7%

Source: Credit Suisse Securities

9. Hologic

Ticker: HOLX

Sales growth: 21.0%

Earnings-per-share growth: 38.4%

Source: Credit Suisse Securities

10. Inphi

Ticker: IPHI

Sales growth: 32.1%

Earnings-per-share growth: 30.5%

Source: Credit Suisse Securities

11. Keysight Technologies

Ticker: KEYS

Sales growth: 8.1%

Earnings-per-share growth: 13.0%

Source: Credit Suisse Securities

12. Ligand Pharmaceuticals

Ticker: LGND

Sales growth: 17.0%

Earnings-per-share growth: 22.7%

Source: Credit Suisse Securities

13. Lumentum Holdings

Ticker: LITE

Sales growth: 8.0%

Earnings-per-share growth: 8.0%

Source: Credit Suisse Securities

14. Lam Research

Ticker: LRCX

Sales growth: 20.9%

Earnings-per-share growth: 28.5%

Source: Credit Suisse Securities

15. Merck

Ticker: MRK

Sales growth: 6.0%

Earnings-per-share growth: 10.9%

Source: Credit Suisse Securities

16. Micron Technology

Ticker: MU

Sales growth: 10.9%

Earnings-per-share growth: 50.4%

Source: Credit Suisse Securities

17. National Instruments

Ticker: NATI

Sales growth: 2.1%

Earnings-per-share growth: -15.3%

Source: Credit Suisse Securities

18. Neurocrine Biosciences

Ticker: NBIX

Sales growth: 30.7%

Earnings-per-share growth: 147.1%

Source: Credit Suisse Securities

19. Newmont

Ticker: NEM

Sales growth: 18.5%

Earnings-per-share growth: 69.6%

Source: Credit Suisse Securities

20. National Fuel Gas

Ticker: NFG

Sales growth: 27.2%

Earnings-per-share growth: 21.0%

Source: Credit Suisse Securities

21. Universal Display

Ticker: OLED

Sales growth: 24.7%

Earnings-per-share growth: 43.3%

Source: Credit Suisse Securities

22. Palo Alto Networks

Ticker: PANW

Sales growth: 18.0%

Earnings-per-share growth: 15.7%

Source: Credit Suisse …read more

Source:: Business Insider

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