Goldman's 'Rule of 10' growth stocks could be the next market leaders

Goldman's 'Rule of 10' growth stocks could be the next market leaders

The five biggest stocks — Apple, Microsoft, Amazon, Alphabet, and Facebook — currently account for 23% of the S&P 500, marking the highest concentration in 40 years. But Goldman Sachs said their leadership won't last forever and other high-growth stocks have the potential to one day take some of those top spots. Goldman used the so-called "Rule of 10" criteria to identify stocks with strong secular growth prospects that could drive share price outperformance. These stocks, according to the firm's investing rule, have a track record of at least 10% sales growth during each of the past two years and they are expected to grow revenue at the same pace for each of the next two years. Stocks meeting these criteria have a strong track record of beating the market, the bank said.
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