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Top Stock Picks for Week of October 25, 2021

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EV maker Tesla (TSLA - Free Report) has evolved into a dynamic technology innovator.Tesla is the market leader in battery-powered electric car sales in the United States, owning around 60% of market share. Shares of Tesla have outperformed the industry over the past year. The electric vehicle (EV) king hit a milestone in third-quarter 2021, with gross auto margins attaining a record high. Riding on robust Model 3/Y demand, Tesla achieved record Q3 production and deliveries despite chip crunch. The company has also started making progress at ramping up volumes of Models S and X. With China being the biggest EV market, Tesla’s Shanghai factory is buoying the company's revenue prospects. Also, production from Berlin and Texas gigafactories is expected to commence this year. In addition to increasing automotive revenues, Tesla’s energy generation and storage revenues are also boosting earnings prospects. Further, low debt to capitalization increases the firm’s financial flexibility. As such, Tesla is viewed as a solid bet now.

The Goldman Sachs Group, Inc. (GS - Free Report) is a leading global financial holding company providing investment banking, securities, investment management and consumer banking services to a diversified client base. Shares of Goldman have outperformed the industry in the past year. The company has an impressive earnings surprise history, having outpaced the Zacks Consensus Estimate in all the trailing four quarters. Third-quarter results reflect record financial advisory revenues and assets under supervision. Amid continued deal-making frenzy, Goldman’s solid position in announced and completed mergers & acquisitions (M&As) globally is likely to drive its investment banking (“IB”) revenues. Backed by a solid capital position, Goldman has consistently enhanced shareholders’ value with steady capital deployment activities. The company announced a dividend hike by double digits in July of this year and has maintained the same amount. Goldman’s trailing 12-month return on equity (ROE) supports its growth potential.  


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