<p><img src="https://static5.businessinsider.com/image/6090637af22c6b00185db5e6-1010/cow.jpg" border="0" alt="cow in grass, black and white cow" data-mce-source="Photo by Soeren Stache/picture alliance via Getty Images" data-mce-caption="A cow in a field."></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p><a href="https://www.businessinsider.com/category/growth-investing">Investing in growth stocks</a> can be a difficult game at the moment.</p><p>Many have unthinkably <a href="https://www.businessinsider.com/category/valuations">high valuations</a> thanks to things like low interest rates and heightened speculation, raising questions about how long their outperformance can last going forward. On the other hand, investing solely based on valuation isn't always necessarily the best approach either.</p><p>Another way to identify companies that could do well in the future is by looking at how much they're investing in themselves and planting the seeds of future growth. In a recent note, a team of analysts at <a href="https://www.businessinsider.com/category/goldman-sachs">Goldman Sachs</a> did just that, and came up with a list of firms outperforming the <a href="https://markets.businessinsider.com/index/s&p_500">S&P 500</a> average in terms of investment for the future. </p><p>To do so, they looked at how much a firm is investing in the future as a percentage of their operating cash flow while also factoring in asset depreciation.</p><p>"High capex spending by itself can be a flawed measure of investment for future growth since many firms operate in asset-heavy industries and may barely invest at a rate faster than assets are depreciating," Goldman's Chief US Equity Strategist <a href="https://www.businessinsider.com/category/david-kostin">David Kostin</a> said in the Monday note.</p><p>The list of firms spans several sectors and over the last three years has a growth investment rate of 78% on Goldman's scale compared to 11% for the rest of the S&P 500. The companies are also expected to generate higher cash returns on cash investment compared to the rest of the index this year, the bank said. </p><p>The average forward price-to-earnings ratio, a valuation measure, is 26x. This is higher than the S&P 500's average at 23x, but lower than many other growth names.</p><p>Below we've compiled the 24 stocks on the list that are above the median growth investment rate of 78%, ordered from the highest rate to lowest. Listed as well is the expected rate of cash return on cash investment (CROCI) for 2021, if applicable.</p><h3>1. Incyte</h3><img src="https://static3.businessinsider.com/image/60905971f22c6b00185db575-400-300/1-incyte.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/incy-stock">INCY</a></strong></p><p><strong>3-year growth investment ratio: </strong>515%</p><p><strong>2021 CROCI: </strong>30% </p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>2. Carnival</h3><img src="https://static4.businessinsider.com/image/609059c034af8d001859aa47-400-300/2-carnival.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/ccl-stock">CCL</a></strong></p><p><strong>3-year growth investment ratio: </strong>346%</p><p><strong>2021 CROCI: </strong>N/A</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>3. Advanced Micro Devices</h3><img src="https://static4.businessinsider.com/image/60905a1d34af8d001859aa4a-400-300/3-advanced-micro-devices.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/amd-stock">AMD</a></strong></p><p><strong>3-year growth investment ratio: </strong>299%</p><p><strong>2021 CROCI: </strong>47%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>4. Edison International</h3><img src="https://static2.businessinsider.com/image/60905a8b34af8d001859aa51-400-300/4-edison-international.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/eix-stock">EIX</a></strong></p><p><strong>3-year growth investment ratio: </strong>220%</p><p><strong>2021 CROCI: </strong>7%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>5. Alliant Energy</h3><img src="https://static4.businessinsider.com/image/60905b0834af8d001859aa57-400-300/5-alliant-energy.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/lnt-stock">LNT</a></strong></p><p><strong>3-year growth investment ratio: </strong>174%</p><p><strong>2021 CROCI: </strong>N/A</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>6. Norwegian Cruise Lines</h3><img src="https://static2.businessinsider.com/image/60905b66f22c6b00185db58a-400-300/6-norwegian-cruise-lines.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/nclh-stock">NCLH</a></strong></p><p><strong>3-year growth investment ratio: </strong>164%</p><p><strong>2021 CROCI: </strong>7%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>7. DexCom</h3><img src="https://static4.businessinsider.com/image/60905bb234af8d001859aa5c-400-300/7-dexcom.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/dxcm-stock">DXCM</a></strong></p><p><strong>3-year growth investment ratio: </strong>156%</p><p><strong>2021 CROCI: </strong>N/A</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>8. Synopsys</h3><img src="https://static5.businessinsider.com/image/60905bf4f22c6b00185db598-400-300/8-synopsys.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/snps-stock">SNPS</a></strong></p><p><strong>3-year growth investment ratio: </strong>134%</p><p><strong>2021 CROCI: </strong>N/A</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>9. Juniper Networks</h3><img src="https://static4.businessinsider.com/image/60905c4a34af8d001859aa73-400-300/9-juniper-networks.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/jnpr-stock">JNPR</a></strong></p><p><strong>3-year growth investment ratio: </strong>132%</p><p><strong>2021 CROCI: </strong>10%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>10. Cadence Design Systems</h3><img src="https://static3.businessinsider.com/image/60905c94f22c6b00185db59d-400-300/10-cadence-design-systems.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/cdns-stock">CDNS</a></strong></p><p><strong>3-year growth investment ratio: </strong>120%</p><p><strong>2021 CROCI: </strong>N/A</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>11. Regeneron Pharmaceuticals</h3><img src="https://static2.businessinsider.com/image/60905cde34af8d001859aa7a-400-300/11-regeneron-pharmaceuticals.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/regn-stock">REGN</a></strong></p><p><strong>3-year growth investment ratio: </strong>113%</p><p><strong>2021 CROCI: </strong>79%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>12. Eli Lilly</h3><img src="https://static2.businessinsider.com/image/60905d2234af8d001859aa7d-400-300/12-eli-lilly.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/lly-stock">LLY</a></strong></p><p><strong>3-year growth investment ratio: </strong>113%</p><p><strong>2021 CROCI: </strong>21%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>13. ONEOK</h3><img src="https://static4.businessinsider.com/image/60905d7934af8d001859aa81-400-300/13-oneok.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/oke-stock">OKE</a></strong></p><p><strong>3-year growth investment ratio: </strong>111%</p><p><strong>2021 CROCI: </strong>9% </p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>14. General Motors</h3><img src="https://static4.businessinsider.com/image/60905eee34af8d001859aa91-400-300/14-general-motors.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/gm-stock">GM</a></strong></p><p><strong>3-year growth investment ratio: </strong>108%</p><p><strong>2021 CROCI: </strong>9%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>15. Wynn Resorts</h3><img src="https://static2.businessinsider.com/image/60905f3834af8d001859aa95-400-300/15-wynn-resorts.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/wynn-stock">WYNN</a></strong></p><p><strong>3-year growth investment ratio: </strong>106%</p><p><strong>2021 CROCI: </strong>5%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>16. Albemarle</h3><img src="https://static2.businessinsider.com/image/60905f79f22c6b00185db5b8-400-300/16-albemarle.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/alb-stock">ALB</a></strong></p><p><strong>3-year growth investment ratio: </strong>94%</p><p><strong>2021 CROCI: </strong>5%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>17. Merck</h3><img src="https://static4.businessinsider.com/image/60905fbd34af8d001859aa99-400-300/17-merck.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/mrk-stock">MRK</a></strong></p><p><strong>3-year growth investment ratio: </strong>93%</p><p><strong>2021 CROCI: </strong>16%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>18. Diamondback Energy</h3><img src="https://static3.businessinsider.com/image/6090600cf22c6b00185db5bb-400-300/18-diamondback-energy.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/fang-stock">FANG</a></strong></p><p><strong>3-year growth investment ratio: </strong>91%</p><p><strong>2021 CROCI: </strong>9%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>19. Gilead Science</h3><img src="https://static2.businessinsider.com/image/6090604b34af8d001859aa9f-400-300/19-gilead-science.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/gild-stock">GILD</a></strong></p><p><strong>3-year growth investment ratio: </strong>90%</p><p><strong>2021 CROCI: </strong>22%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>20. Edwards Lifesciences</h3><img src="https://static6.businessinsider.com/image/609060aa34af8d001859aaa3-400-300/20-edwards-lifesciences.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/ew-stock">EW</a></strong></p><p><strong>3-year growth investment ratio: </strong>88%</p><p><strong>2021 CROCI: </strong>31%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>21. Amazon</h3><img src="https://static2.businessinsider.com/image/6090610d34af8d001859aaa7-400-300/21-amazon.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/amzn-stock">AMZN</a></strong></p><p><strong>3-year growth investment ratio: </strong>85%</p><p><strong>2021 CROCI: </strong>NM</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>22. Electronic Arts</h3><img src="https://static3.businessinsider.com/image/609057ef34af8d001859aa3d-400-300/22-electronic-arts.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/ea-stock">EA</a></strong></p><p><strong>3-year growth investment ratio: </strong>82%</p><p><strong>2021 CROCI: </strong>32%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>23. Western Digital</h3><img src="https://static5.businessinsider.com/image/6090619c34af8d001859aaba-400-300/23-western-digital.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/wdc-stock">WDC</a></strong></p><p><strong>3-year growth investment ratio: </strong>82%</p><p><strong>2021 CROCI: </strong>9%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/><h3>24. Qualcomm</h3><img src="https://static2.businessinsider.com/image/609061dcf22c6b00185db5d9-400-300/24-qualcomm.jpg" alt="" /><p><p><strong>Ticker: <a href="https://markets.businessinsider.com/stocks/qcom-stock">QCOM</a></strong></p><p><strong>3-year growth investment ratio: </strong>81%</p><p><strong>2021 CROCI: </strong>41%</p><p><em>Source: Goldman Sachs</em></p><p><br /><br /></p></p><br/><br/>
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