Riding the wave of positive economic developments in 2023, investors have significantly increased their exposure to the stock market this year.
The evidence is in the data, as pointed out by Goldman Sachs’ Chief US Equity Strategist, David Kostin. The investment firm’s US Equity Sentiment Indicator rebounded from -1.8 in December to +1.5 in July. However, during August, the bears have been trying to regain a foothold, and over the past week, that metric has fallen to +0.8.
Now, Kostin says that a common question asked by investors is whether the current “level of equity length will limit upside for stocks.”
And here, Kostin has a reassuring answer for those worried about what’s coming next. “We find that US investors have room to further increase their exposure to equities,” he said. “Should the US economy continue on its path to a soft landing, we believe the recent decrease in equity length will be short-lived.”
Running with this positive sentiment, the analysts at Goldman have pinpointed two names that they see as poised to deliver the goods as the stock market regains momentum. We ran this pair of Goldman-recommended names through the TipRanks database to find out what the rest of the Street has to say about them. It turns out that both are rated as Strong Buys by the analyst consensus. Let’s find out why.
Revance Therapeutics (RVNC)
The first Goldman Sachs-backed company we’ll look at is Revance Therapeutics, a biotech company that specializes in developing innovative treatments for various medical and aesthetic conditions.
Revance has been making strides in the aesthetic drug market, a segment that pharmaceutical colossus Abbvie has dominated for the last couple of decades with its anti-wrinkle treatment Botox. And it appears that Revance is ready for the challenge.
Achieving the ultimate goal every biotech company aims for, last September, the FDA gave the green light for its neuromuscular blocker Daxxify, approving the therapy for injection to temporarily improve moderate to severe frown lines. The approval was followed by the launch of…