almost 4 years ago • 2 mins
Goldman Sachs may be done with its earnings, but the investment bank also focuses on others’ performance – and a report this week revealed which stocks it expects to gain the most on release of their own results ⏰
Goldman’s “Top 25 Tactical Trades” include a few esoteric investment ideas for financial whizzkids (or at least those who’ve read our Futures & Options Pack). But they boil down to a few basic nuggets of wisdom.
One is that coronavirus uncertainty and historically low market liquidity – i.e. few buyers and sellers – mean that stocks look set for big moves on earnings day. The highest options prices on record suggest investors expect the average S&P 500 company’s share price to move 13% up or down.
Against that backdrop, Goldman’s selected 25 stocks where its own analysts’ predictions for earnings depart from the investor consensus – and where the bank is particularly confident they’ll be proved right… 😳
While the likes of donut baron Dunkin’ Brands and Juul junkie Altria should, in Goldman’s opinion, see their share prices drop on disappointing results, the investment bank also singled out a few potential big winners.
Among the biggest is aircraft builder Boeing, where Goldman thinks investors are being overly negative given US financial support for airlines and the likelihood of a post-virus rebound in overseas travel. Walmart, meanwhile, is expected to sell plenty of essentials even if discretionary spending dips. And Goldman also predicts great things for data analytics firm Alteryx, given its strong track record in upselling small services to big business customers 🤔
If this earnings season vindicates Goldman’s analysts' limb-leaning, the bank could make a mint. And so could Finimizers who put aside part of their long-term portfolio for individual investments (after doing plenty of their own research, mind). Then again, the Goldman team also sees the entire S&P 500 – a much safer proposition – rising by at least 6% over the next year...
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