"Identifying Stocks with Weak Pricing Power for Outperformance"
Goldman Sachs' U.S. Weekly Kickstart report suggests that companies with weak pricing power may outperform as EBIT margins improve, with stocks trading at a 14% P/E discount to those with strong pricing power. The report highlights a portfolio of Russell 1000 stocks with low pricing power and emphasizes the potential benefits of improving profitability in a solid economic growth environment. The report also lists several companies with weak pricing power across various sectors, including communication services, consumer discretionary, consumer staples, energy, health care, industrials, information technology, and materials.
