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Comments U.S. equity strategists at Goldman Sachs, led by David Kostin, said the recent rebound in the “quality” factor -- a basket of stocks characterized by high returns on equity, low leverage and stable earnings -- remains limited by still-elevated short interest and a benign macroeconomic outlook that offers little incentive Quick Insights Recent underperformance stems from a short squeeze favoring low-quality stocks, investor rotation towards riskier names, and a benign macro outlook discouraging defensive high-quality equity exposure. Goldman Sachs sees high-quality stocks as overvalued relative to their fundamentals, with limited near-term upside due to stretched valuations, elevated short interest, and a growth/monetary environment that favors cyclicals. Yes, Goldman highlights discounted quality stocks (including Adobe, Fiserv, PepsiCo, S&P Global) offering attractive valuations and projected growth despite broader factor pressure. Recommended For You More Trending News Related Stocks SymbolLast Price% Chg SP500 SP500 -- COMP:IND COMP:IND -- DJI DJI -- 1D 5D 1M 6M 1Y 5Y 10Y Trending Analysis Trending News
