Goldman Sachs: These 40 stocks have at least 34% upside right now while the rest of the market struggles for gains in 2023

goldman-sachs:-these-40-stocks-have-at-least-34%-upside-right-now-while-the-rest-of-the-market-struggles-for-gains-in-2023

Goldman Sachs sees limited upside for the S&P 500 in 2023 as earnings stay flat. But if corporate earnings decline in a recession, US stocks could plunge. Here are 40 stocks that Goldman Sachs analysts believe have the most upside right now. US stocks got off to a choppy start in the first week of 2023, and Goldman Sachs thinks the volatility is only just getting started.

Although Goldman’s year-end S&P 500 target of 4,000 implies a muted 5% gain, its strategists see the path forward as anything but uneventful. The firm predicts the index will slide 6% to 3,600 in the first three months of 2023 before rebounding by 8% to 3,900 at the year’s midpoint.

But even modest gains are no guarantee this year, given that Goldman Sachs is also calling for flat earnings growth. David Kostin, the chief US equity strategist at Goldman Sachs, wrote in a note about his 2023 outlook that investors should expect “less pain but also no gain.”

If corporate earnings remain flat, then US stocks could only rise if investors pay a premium for them in the face of historically high interest rates and stock valuations. And while some firms see profits improving from 2022, many on Wall Street are envisioning outright earnings declines.

Goldman Sachs isn’t calling for negative earnings since — unlike most of its investment banking peers — it doesn’t believe there will be a recession in the next year. If the consensus prevails and the economy does enter a downturn, Kostin wrote that earnings could fall 11% as the market’s price-to-earnings (P/E) ratio falls to 14x, which would put the S&P 500 at 3,150.

40 high-upside stocks to buyHowever, Goldman Sachs still sees attractive investing opportunities in this turbulent market.

Below are 40 stocks that the firm’s strategists identified in a January 4 note as having the most upside in 2023. Along with each name is its ticker, market capitalization, and upside to the firm’s price target as of December 30.

1. Salesforce

Markets Insider Ticker: CRM

Market cap: $136.3B

Upside to price target: 126.3%

Source: Goldman Sachs

2. Mosaic

Markets Insider Ticker: MOS

Market cap: $15.2B

Upside to price target: 109.7%

Source: Goldman Sachs

3. Warner Bros. Discovery

Markets Insider Ticker: WBD

Market cap: $26.4B

Upside to price target: 100.4%

Source: Goldman Sachs

4. Expedia

Markets Insider Ticker: EXPE

Market cap: $14.6B

Upside to price target: 97.5%

Source: Goldman Sachs

5. Amazon

Markets Insider Ticker: AMZN

Market cap: $851.9B

Upside to price target: 96.4%

Source: Goldman Sachs

6. Match Group

Markets Insider Ticker: MTCH

Market cap: $11.8B

Upside to price target: 68.7%

Source: Goldman Sachs

7. Moderna

Markets Insider Ticker: MRNA

Market cap: $66.9B

Upside to price target: 68.7%

Source: Goldman Sachs

8. Tesla

Markets Insider Ticker: TSLA

Market cap: $346.6B

Upside to price target: 66.4%

Source: Goldman Sachs

9. Trimble

Markets Insider Ticker: TRMB

Market cap: $12.4B

Upside to price target: 66.1%

Source: Goldman Sachs

10. ServiceNow

Markets Insider Ticker: NOW

Market cap: $74.2B

Upside to price target: 64.8%

Source: Goldman Sachs

11. Hasbro

Markets Insider Ticker: HAS

Market cap: $8.8B

Upside to price target: 60.6%

Source: Goldman Sachs

12. Live Nation Entertainment

Markets Insider Ticker: LYV

Market cap: $16.6B

Upside to price target: 60.6%

Source: Goldman Sachs

13. CF Industries

Markets Insider Ticker: CF

Market cap: $16.4B

Upside to price target: 57.3%

Source: Goldman Sachs

14. PayPal

Markets Insider Ticker: PYPL

Market cap: $86.9B

Upside to price target: 55.9%

Source: Goldman Sachs

15. First Solar

Markets Insider Ticker: FSLR

Market cap: $15.5B

Upside to price target: 54.2%

Source: Goldman Sachs

16. Incyte

Markets Insider Ticker: INCY

Market cap: $17.9B

Upside to price target: 53.1%

Source: Goldman Sachs

17. Alphabet

Markets Insider Ticker: GOOGL

Market cap: $1,120B

Upside to price target: 53%

Source: Goldman Sachs

18. Generac Holdings

Markets Insider Ticker: GNRC

Market cap: $6.2B

Upside to price target: 53%

Source: Goldman Sachs

19. Tyson Foods

Markets Insider Ticker: TSN

Market cap: $23.1B

Upside to price target: 52.6%

Source: Goldman Sachs

20. Vertex Pharmaceuticals

Markets Insider Ticker: VRTX

Market cap: $74.3B

Upside to price target: 52.4%

Source: Goldman Sachs

21. Lincoln National

Markets Insider Ticker: LNC

Market cap: $5.3B

Upside to price target: 49.7%

Source: Goldman Sachs

22. Intuit

Markets Insider Ticker: INTU

Market cap: $105.5B

Upside to price target: 47.7%

Source: Goldman Sachs

23. SolarEdge Technologies

Markets Insider Ticker: SEDG

Market cap: $15.5B

Upside to price target: 46.9%

Source: Goldman Sachs

24. EQT Corp.

Markets Insider Ticker: EQT

Market cap: $11.8B

Upside to price target: 44.8%

Source: Goldman Sachs

25. Take-Two Interactive Software

Markets Insider Ticker: TTWO

Market cap: $17.8B

Upside to price target: 44.1%

Source: Goldman Sachs

26. Enphase Energy

Markets Insider Ticker: ENPH

Market cap: $32.7B

Upside to price target: 43%

Source: Goldman Sachs

27. Regeneron Pharmaceuticals

Markets Insider Ticker: REGN

Market cap: $78.8B

Upside to price target: 42.3%

Source: Goldman Sachs

28. Global Payments

Markets Insider Ticker: GPN

Market cap: $27.6B

Upside to price target: 42%

Source: Goldman Sachs

29. Adobe

Markets Insider Ticker: ADBE

Market cap: $152.7B

Upside to price target: 41.1%

Source: Goldman Sachs

30. Sealed Air

Markets Insider Ticker: SEE

Market cap: $7.2B

Upside to price target: 40.3%

Source: Goldman Sachs

31. Alaska Air Group

Markets Insider Ticker: ALK

Market cap: $5.6B

Upside to price target: 39.7%

Source: Goldman Sachs

32. TE Connectivity

Markets Insider Ticker: TEL

Market cap: $36.8B

Upside to price target: 39.4%

Source: Goldman Sachs

33. Raymond James Financial

Markets Insider Ticker: RJF

Market cap: $23B

Upside to price target: 38.5%

Source: Goldman Sachs

35. Iron Mountain

Markets Insider Ticker: IRM

Market cap: $14.2B

Upside to price target: 36.4%

Source: Goldman Sachs

36. Walt Disney

Markets Insider Ticker: DIS

Market cap: $167.5B

Upside to price target: 35.8%

Source: Goldman Sachs

37. United Airlines Holdings

Markets Insider Ticker: UAL

Market cap: $13.5B

Upside to price target: 35.3%

Source: Goldman Sachs

38. Discover Financial Services

Markets Insider Ticker: DFS

Market cap: $27.2B

Upside to price target: 34.9%

Source: Goldman Sachs

39. American International Group

Markets Insider Ticker: AIG

Market cap: $47.2B

Upside to price target: 34.4%

Source: Goldman Sachs

40. Republic Services

Markets Insider Ticker: RSG

Market cap: $39.6B

Upside to price target: 34.1%

Source: Goldman Sachs


Leave a comment

Your email address will not be published. Required fields are marked *