The Federal Reserve is currently fighting inflation by hiking interest rates at the quickest tempo in decades to lower economic demand. The Central banking of the US is attempting to devise a “soft landing” strategy to potentially prevent a recession and lower inflation without harming the economy.
Goldman Sachs’s list of stocks that may benefit from a soft landing
Interestingly, the American investment bank Goldman Sachs suggests that the soft landing may aid 46 major firms, including Tesla. Its list of 46 stocks includes Russell 3000 firms in a cyclical business group with over $5 billion market cap.
The Altman Z-scores of the selected firms are apparently profitable and below the 10-year median. For those unaware, the Altman Z-score index calculates a firm’s potential for bankruptcy.
Meanwhile, several energy-specific firms are excluded, as are others that have exceeded their broader sector groups since 2021. However, Tesla is regarded as sufficiently diversified to be listed.
EVANNEX noted that the list featured numerous capital goods and diversified financial stocks with a $10 billion median market cap. AMD was one of the diversified tech stocks on the list, along with other notable stocks, including Capital One Financial, 3M, Parker Hannifin, and several others.
Below are the ten stocks included in the list, organized by industry. (via The Street)
| Company | Industry |
| Tesla (TSLA) | Electric auto-titan |
| Capital One Financial (COF) | Bank |
| Truist Financial (TFC) | Bank |
| CME (CME) | Financial exchange company |
| Carlyle Group (CG) | Private equity firm |
| 3M (MMM) | Tech and manufacturing conglomerate |
| Masco (MAS) | Home-improvement-product maker |
| Otis Worldwide (OTIS) | Elevator and escalator maker |
| Parker Hannifin (PH) | Provider of motion and control tech |
| Advanced Micro Devices (AMD) | Semiconductor stalwart |
Tesla’s narrow moat
Morningstar analyst Seth Goldstein gives Tesla a “narrow moat” or a durable competitive advantage. He values the stock at $220, which is 80% more than its most recent trading price of $122.
“However, fourth-quarter deliveries still grew 31 percent year over year, which we view as a sign that demand is still present, and the company can still grow.
Accordingly, we forecast over 1.6 million vehicles delivered in 2023, a 24% growth rate. [Further,] our long-term assumptions remain intact. We forecast over 5 million vehicles [in annual deliveries] by 2031, as Tesla launches the Cybertruck and new affordable vehicle platform.”
Seth Goldstein
Automotive News reported a Tesla spokesperson’s statement that a partial normalization of cost inflation caused the price reductions. Interestingly, it reflects previous remarks from a Chinese executive.
“At the end of a turbulent year with interruptions to the supply chain, we have achieved a partial normalization of cost inflation, which gives us the confidence to pass this relief onto our customers.”
Tesla Spokesperson
