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Goldman Sachs released a new report detailing some of what it views as important data points, market observations, and investor recommendations.

The report includes a list of secular growth stocks that trade at “reasonable valuations.”

The list was compiled using Goldman Sachs’s “rule of ten” criteria. In order to be included on the list, a stock must have each of the following:

  1. At least 10% long term EPS growth
  2. At least 10% 2015A and 2016E sales growth
  3. At least 10% 2017E and 2018E sales growth

Of the over 750 stocks analyzed, 60 met all three criteria. The top 13 include some of the largest companies by market cap in the world like Netflix, Amazon, and Tesla, along with some lesser known companies as well.

Here are the top 13 “rule of ten” secular growth stocks trading at reasonable valuations, arranged by Goldman Sachs’s growth forecast for 2107.

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Tesla, Inc.

Ticker: TSLA

Sector: Consumer Discretionary

Market Cap: $51 billion

Total Return YTD: 45%

Realized Sales Growth

2015: 27%

2016: 73%

Goldman Sachs Realized Growth Forecast

2017: 72%

2018: 34%

Long Term EPS Growth: 35%

EV/Sales: 6.3x

Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.

Pure Storage Inc.

Ticker: PSTG

Sector: Information Technology

Market Cap: $3 billion

Total Return YTD: 11%

Realized Sales Growth

2015: 152%

2016: 65%

Goldman Sachs Realized Growth Forecast

2017: 39%

2018: 29%

Long Term EPS Growth: 35%

EV/Sales: 2.7x

Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.

Zendesk, Inc.

Ticker: ZEN

Sector: Information Technology

Market Cap: $3 billion

Total Return YTD: 29%

Realized Sales Growth

2015: 64%

2016: 49%

Goldman Sachs Realized Growth Forecast

2017: 35%

2018: 30%

Long Term EPS Growth: 26%

EV/Sales: 5.1x

Source: Compustat, FactSet, and Goldman Sachs Global Investment Research. As of July 6, 2017.

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