Goldman Debt Issuers Stock Basket (S&P Complete Indices:SP500)

Goldman Sachs listed its basket of debt issuers.

Analysts expect total cash spending by S&P 500 (SP500) companies to grow 9% to $3.7 trillion this year. This move is led by cash M&A and buybacks, according to a US Weekly Kickstart report.

“Interest rates are now expected to remain higher for longer than previously anticipated and will likely discourage the issuance of large debt to finance spending plans,” analyst David J. Kostin wrote in the report. “However, companies have begun to rebuild their cash balances.”

Cash balances of the typical S&P 500 stock (SP500) have increased 7% year over year over the last 12 months. Analysts forecast the S&P 500 (SP500) EPS to grow 8% in 2024 and 6% the following year. This would provide businesses with more cash to spend.

Additionally, “the growing confidence of CEOs should also make companies more willing to deploy capital,” Kostin said. “We predict that companies will allocate 43% of spending to returning cash to shareholders and 57% to investing for growth, compared to five-year averages of 47% and 53%.”

Goldman analysts rebalanced their basket of debt issuers, with data as of April 18:

Communication Services (XLC)

• Take-Two Interactive Software (TTWO) – Net debt EBITDA: 4.5x; Net issuance/amortization: $1.9 billion, 6% of EV.
• News Corp. (NWSA) – Net Debt EBITDA: 1.8x; Net issue/amortization: $0.8 billion, 5% of EV.
• Chater Communications (CHTR) – Net Debt EBITDA: 4.7x; Net issuance/amortization: $6.4 billion, 4% of EV.
• Fox Corp. (FOXA) – Net Debt EBITDA: 1.5x; Net issue/amortization: $500 million, 2% of EV.
• Meta Platforms Inc. (META) – Net Debt EBITDA: -0.3x; Net issuance/amortization: $16.5 billion, 2% of EV.
• Live Nation Entertainment (LYV) – Net Debt EBITDA: 1x; Net issue/amortization: $0.4 billion, 2% of EV.

Consumer Discretionary (XLY)

• Tapestry Inc. (TPR) – Net Debt EBITDA: 1.7x; Net issuance/amortization: $6 billion, 58% of EV.
• General Motors (GM) – Net debt EBITDA: 3.4x; Net issuance/amortization: $12.7 billion, 9% of EV.
• Ford Motor Co. (F) – Net debt EBITDA: 5.3x; Net issuance/amortization: $13.4 billion, 8% of EV.
• LKQ Corp. (LKQ) – Net Debt EBITDA: 2.5x; Net issuance/amortization: $1.4 billion, 8% of EV.
• Aptiv Plc (APTV) – Net debt EBITDA: 2.1 times; Net issuance/amortization: $2.1 billion, 7% of EV.
• Norwegian Cruise Line Holdings (NCLH) – Net debt EBITDA: 7.4 times; Net issuance/amortization: $1.5 billion, 7% of EV.

Consumer Staples Products (XLP)

• Kenvue Inc. (KVUE) – Net debt EBITDA: 1.9 times; Net issuance/amortization: $8.3 billion, 17% of EV.
• JM Smucker (SJM) – Net debt EBITDA: 2.8 times; Net issuance/amortization: $3.2 billion, 15% of EV.
• Philip Morris International (PM) – Net debt EBITDA: 3.1x; Net issuance/amortization: $17.9 billion, 9% of EV.
• General Dollar (DG) – Net debt EBITDA: 5.4x; Net issuance/amortization: $2.8 billion, 6% of EV.

Energy (XLE)

• Targa Resources (TRGP) – Net debt EBITDA: 3.1x; Net issuance/amortization: $6 billion, 18% of EV.
• Marathon Oil Corp. (MRO) – Net Debt EBITDA: 1.4x; Net issue/amortization: $1.4 billion, 7% of EV.
• ONEOK Inc. (OKE) – Net debt EBITDA: 3.8 times; Net issuance/amortization: $3.9 billion, 6% of EV.

Healthcare (XLV)

• GE HealthCare Technologies (GEHC) – Net Debt EBITDA: 2.2x; Net issuance/amortization: $93 billion, 22% of EV.
• Amgen Inc. (AMGN) – Net Debt EBITDA: 2.3x; Net issuance/amortization: $32.3 billion, 15% of EV.
• Pfizer Inc. (PFE) – Net Debt EBITDA: 1.5x; Net issuance/amortization: $32.4 billion, 14% of EV.
• Bio-Rad Laboratories (BIO) – Net debt EBITDA: 0.5 times; Net issue/amortization: $1.2 billion, 13% of EV.
• Henry Schein Inc. (HSIC) – Net debt EBITDA: 2x; Net issuance/amortization: $1.3 billion, 9% of EV.
• Universal Health Services (UHS) – Net debt EBITDA: 3x; Net issue/amortization: $0.7 billion, 5% of EV.
• Catalent Inc. (CTLT) – Net Debt EBITDA: 18.8x; Net issue/amortization: $500 million, 4% of EV.

Industrial (XLI)

• Veralto Corp. (VLTO) – Net debt EBITDA: 1.8x; Net issue/amortization: $2.6 billion, 12% of EV.
• L3Harris (LHX) – Net debt EBITDA: 3.1 times; Net issuance/amortization: $6 billion, 11% of EV.
• Deere & Co. (DE) – Net debt EBITDA: 3.1x; Net issuance/amortization: $17 billion, 10% of EV.
• Carrier Global (CARR) – Net Debt EBITDA: 1.5x; Net issuance/amortization: $4.5 billion, 8% of EV.
• RTX Corp. (RTX) – Net Debt EBITDA: 2.7x; Net issuance/amortization: $12.4 billion, 8% of EV.

Information technology (XLK)

• Gen Digital Inc. (GEN) – Net debt EBITDA: 4.3x; Net issuance/amortization: $5.2 billion, 22% of EV.
• Trimble Inc. (TRMB) – Net Debt EBITDA: 3x; Net issuance/amortization: $1.8 billion, 11% of EV.
• Zebra (ZBRA) – Net Debt EBITDA: 3.1x; Net issuance/amortization: $1.2 billion, 8% of EV.
• Micron technology (MU) – Net debt EBITDA: 1.7x; Net issuance/amortization: $5.8 billion, 6% of EV.
• HP Inc. (HPQ) – Net debt EBITDA: 1.7x; Net issue/amortization: $2.2 billion, 6% of EV.
• Broadcom Inc. (AVGO) – Net Debt EBITDA: 1.7x; Net issuance/amortization: $28.5 billion, 5% of EV.
• Intel Corp. (INTC) – Net debt EBITDA: 1.9 times; Net issuance/amortization: $12.1 billion, 5% of EV.
• First Solar Inc. (FSLR) – Net Debt EBITDA: -1.2x; Net issue/amortization: $0.7 billion, 4% of EV.
• Westen Digital (WDC) – Net debt EBITDA: -6.6 times; Net issuance/amortization: $1 billion, 4% of EV.
• PTC Inc. (PTC) – Net Debt EBITDA: 2.8x; Net issue/amortization: $0.8 billion, 4% of EV.
• KLA Corp. (KLAC) – Net Debt EBITDA: 0.7x; Net issuance/amortization: $2.4 billion, 3% of EV.
• International bus. Machines (IBM) – Net debt EBITDA: 3x; Net issuance/amortization: $5.7 billion, 3% of EV.
• Corning Inc. (GLW) – Net Debt EBITDA: 2.3x; Net issue/amortization: $0.8 billion, 2% of EV.
• Oracle Corp. (ORCL) – Net Debt EBITDA: 3.7x; Net issuance/amortization: $8.7 billion, 2% of EV.
• Texas Instruments (TXN) – Net Debt EBITDA: 0.2x; Net issuance/amortization: $3.5 billion, 2% of EV.
• Fair Isaac Corp. (FICO) – Net debt EBITDA: 2.7 times; Net issue/amortization: $0.3 billion, 1% of EV.
• NXP Semiconductors (NXPI) – Net Debt EBITDA: 1.4x; Net issue/amortization: $0.5 billion, 1% of EV.

Public Services (XLU)

• AES Corp. (AES) – Net debt EBITDA: 9.6x; Net issuance/amortization: $8 billion, 18% of EV.

Materials (XLB)

• Celanese Corp. (CE) – Net debt EBITDA: 5.5x; Net issuance/amortization: $9.7 billion, 33% of EV.