Flash: Is European growth valued? – Goldman Sachs

FXstreet.com (New York) - Investors in the last few years have shown a marked preference for companies with strong and stable top-line growth.

However, now these stocks are on a significant premium to the market. According to the Economics Research Team at Goldman Sachs, “We recently downgraded consumer staples based on a view that these names are both expensive and less geared into an economic recovery than other sectors. In contrast, we find that companies with potential for high earnings growth – typically driven by catch-up or margin recovery – are trading on lower P/Es than they ordinarily would and it’s here we search for value.