Goldman Sachs' Top 15 Stocks

Posted by Wealth Wire - Tuesday, October 18th, 2011

Goldman Sachs, the U.S.'s largest investment bank, has revealed their "High Quality Stock Basket" of the best stocks available, based on ROE, sales growth, earnings growth and dividend yields.

Though Goldman lost $428 million last quarter, they still hold a lot of water in this economy. So, with a grain of salt, here's a rundown of the top 15:

#15: Colgate Palmolive (NYSE: CL)

Sector: Household Products

Average ROE: 137%

2012E Sales Growth: 5%

2012E Earnings Growth: 9%

Percent US Sales: 23%

Dividend Yield: 2.6%

#14: Stryker Corp. (NYSE: SYK)

Sector: Health Care Equipment

Average ROE: 22%

2012E Sales Growth: 7%

2012E Earnings Growth: 11%

Percent US Sales: 65%

Dividend Yield: 1.4%

#13: National Oilwell Varco (NYSE: NOV)

Sector: Oil & Gas Equipment & Services

Average ROE: 12%

2012E Sales Growth: 19%

2012E Earnings Growth: 26%

Percent US Sales: 34%

Dividend Yield: 0.7%

#12: Yum! Brands, Inc. (NYSE: YUM)

Sector: Restaurants

Average ROE: 97%

2012E Sales Growth: 6%

2012E Earnings Growth: 12%

Percent US Sales: 36%

Dividend Yield: 2.2%

#11: General Dynamics (NYSE: GD)

Sector: Aerospace & Defense

Average ROE: 20%

2012E Sales Growth: 4%

2012E Earnings Growth: 7%

Percent US Sales: 82%

Dividend Yield: 3.1%

#10: Coach, Inc. (NYSE: COH)

Sector: Apparel Accessories & Luxury Goods

Average ROE: 43%

2012E Sales Growth: 12%

2012E Earnings Growth: 15%

Percent US Sales: 70%

Dividend Yield: 1.5%

#9: Simon Property Group, Inc (NYSE: SPG)

Sector: Retail REITS

Average ROE: 15%

2012E Sales Growth: 3%

2012E Earnings Growth: 6%

Percent US Sales: 100%

Dividend Yield: 2.8%

#8: Walgreen Co. (NYSE: WAG)

Sector: Drug Retail

Average ROE: 17%

2012E Sales Growth: 3%

2012E Earnings Growth: 11%

Percent US Sales: 100%

Dividend Yield: 2.7%

#7: C.H. Robinson Worldwide (NASDAQ: CHRW)

Sector: Freight and Logistics

Average ROE: 29%

2012E Sales Growth: 12%

2012E Earnings Growth: 16%

Percent US Sales: 89%

Dividend Yield: 1.6%

#6: Southern Co. (NYSE: SO)

Sector: Electric Utilities

Average ROE: 15%

2012E Sales Growth: 5%

2012E Earnings Growth: 6%

Percent US Sales: 100%

Dividend Yield: 4.4%

#5: TJX Companies Inc. TJX

Sector: Apparel Retail

Average ROE: 43%

2012E Sales Growth: 7%

2012E Earnings Growth: 12%

Percent US Sales: 77%

Dividend Yield: 1.3%

#4: PepsiCo Inc. (NYSE: PEP)

Sector: Soft Drinks

Average ROE: 35%

2012E Sales Growth: 3%

2012E Earnings Growth: 8%

Percent US Sales: 53%

Dividend Yield: 3.4%

#3: St. Jude Medical (NYSE: STJ)

Sector: Health Care Equipment

Average ROE: 23%

2012E Sales Growth: 7%

2012E Earnings Growth: 11%

Percent US Sales: 51%

Dividend Yield: 2.2%

#2: Cognizant Tech Solutions (NASDAQ: CTSH)

Sector: IT Consulting & Other Services

Average ROE: 25%

2012E Sales Growth: 22%

2012E Earnings Growth: 20%

Percent US Sales: 78%

Dividend Yield: 0.0%

#1: Ecolab Inc. (NYSE: ECL)

Sector: Specialty Chemical

Average ROE: 23%

2012E Sales Growth: 6%

2012E Earnings Growth: 13%

Percent US Sales: 52%

Dividend Yield: 1.3%

Sources: Goldman Sachs, Business Insider

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