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More market volatility may be ahead in October. ANGELA WEISS/Getty Images This story is available exclusively to Insider subscribers. Become an Insider and start reading now. Stocks have given up most of their gains from the beginning of the month. October is historically the most volatile month for stocks, so more market swings may be ahead. Goldman Sachs listed the 40 stocks with the highest upside, based on the firm’s price targets. So far, October is living up to its reputation as the year’s most volatile month for stocks.
The S&P 500’s 5.7% gain in the first two days of the month has all but evaporated as investors begrudgingly come to terms that the market bottom may not be in yet.
Ironically, the reason for the suddenly sour sentiment is that economic data still looks strong. Stocks started the week on a positive note after the latest Job Openings and Labor Turnover Survey (JOLTS) and Institute for Supply Management (ISM) manufacturing reports came in soft.
Fresh data shows that the labor market remains remarkably resilient, as the ADP private payroll report and Friday’s September jobs report both beat estimates. The latter showed the US unemployment rate actually fell from 3.7% to 3.5% after 263,000 jobs were added last month.
But as economic data improved, investors grew pessimistic out of fear that the Federal Reserve will keep raising interest rates to a level that suffocates the economy and crushes stocks. The S&P 500 has declined 6.45% in the last month, and is down over 23% as of Friday afternoon.
Even after three straight days of selling, Goldman Sachs strategists don’t believe the pain for stocks is over yet. The firm’s year-end S&P 500 price target of 3,400 suggests that US stocks have 7% downside, though the index could fall as low as 3,150 in a more bearish scenario.
40 high-upside stocks to buyFinding winning stocks is never easy, and this highly volatile market environment where sizable gains can evaporate seemingly overnight has made it all the more challenging.
In an early October note, Goldman Sachs listed the 40 stocks that were the furthest below their analysts’ price targets right now. Those targets imply that all of the stocks listed below have at least 50% upside as of September 30. Along with each stock is its ticker, market capitalization, and upside to Goldman’s price target.
1. Moderna
Markets Insider Ticker: MRNA
Market cap: $47.7B
Upside to price target: 150.3%
Source: Goldman Sachs
2. Boeing
Markets Insider Ticker: BA
Market cap: $76.7B
Upside to price target: 132.1%
Source: Goldman Sachs
3. Generac Holdings
Markets Insider Ticker: GNRC
Market cap: $10B
Upside to price target: 127.9%
Source: Goldman Sachs
4. Salesforce
Markets Insider Ticker: CRM
Market cap: $151.1B
Upside to price target: 122.5%
Source: Goldman Sachs
5. ServiceNow
Markets Insider Ticker: NOW
Market cap: $81.6B
Upside to price target: 99.1%
Source: Goldman Sachs
6. Adobe
Markets Insider Ticker: ADBE
Market cap: $135.9B
Upside to price target: 96.2%
Source: Goldman Sachs
7. Mosaic
Markets Insider Ticker: MOS
Market cap: $17.7B
Upside to price target: 92.4%
Source: Goldman Sachs
9. SolarEdge Technologies
Markets Insider Ticker: SEDG
Market cap: $11.8B
Upside to price target: 84.9%
Source: Goldman Sachs
10. Expedia
Markets Insider Ticker: EXPE
Market cap: $14.7B
Upside to price target: 84.7%
Source: Goldman Sachs
11. Warner Bros. Discovery
Markets Insider Ticker: WBD
Market cap: $29.2B
Upside to price target: 82.6%
Source: Goldman Sachs
12. Incyte
Markets Insider Ticker: INCY
Market cap: $15.4B
Upside to price target: 78.6%
Source: Goldman Sachs
13. Advanced Micro Devices
Markets Insider Ticker: AMD
Market cap: $97.9B
Upside to price target: 76.8%
Source: Goldman Sachs
14. International Flavors & Fragrances
Markets Insider Ticker: IFF
Market cap: $22.5B
Upside to price target: 75.1%
Source: Goldman Sachs
15. Charter Communications
Markets Insider Ticker: CHTR
Market cap: $50.8B
Upside to price target: 74.7%
Source: Goldman Sachs
16. Mohawk Industries
Markets Insider Ticker: MHK
Market cap: $6.1B
Upside to price target: 71.1%
Source: Goldman Sachs
17. Live Nation Entertainment
Markets Insider Ticker: LYV
Market cap: $18.1B
Upside to price target: 71%
Source: Goldman Sachs
18. Aptiv PLC
Markets Insider Ticker: APTV
Market cap: $23B
Upside to price target: 68.8%
Source: Goldman Sachs
19. Sealed Air Corp.
Markets Insider Ticker: SEE
Market cap: $6.4B
Upside to price target: 68.5%
Source: Goldman Sachs
20. Tyson Foods
Markets Insider Ticker: TSN
Market cap: $23.1B
Upside to price target: 68.4%
Source: Goldman Sachs
21. Match Group
Markets Insider Ticker: MTCH
Market cap: $13.7B
Upside to price target: 67.5%
Source: Goldman Sachs
22. Fortune Brands Home & Security
Markets Insider Ticker: FBHS
Market cap: $7.4B
Upside to price target: 65.8%
Source: Goldman Sachs
23. Freeport-McMoRan
Markets Insider Ticker: FCX
Market cap: $42B
Upside to price target: 64.7%
Source: Goldman Sachs
24. Trimble
Markets Insider Ticker: TRMB
Market cap: $13.7B
Upside to price target: 64%
Source: Goldman Sachs
25. Mastercard
Markets Insider Ticker: MA
Market cap: $286.9B
Upside to price target: 63.5%
Source: Goldman Sachs
26. Organon & Co.
Markets Insider Ticker: OGN
Market cap: $6.2B
Upside to price target: 62.4%
Source: Goldman Sachs
27. Pentair
Markets Insider Ticker: PNR
Market cap: $6.8B
Upside to price target: 60%
Source: Goldman Sachs
28. Visa
Markets Insider Ticker: V
Market cap: $381.4B
Upside to price target: 59.3%
Source: Goldman Sachs
29. Intuit
Markets Insider Ticker: INTU
Market cap: $111.8B
Upside to price target: 58.8%
Source: Goldman Sachs
30. Hasbro
Markets Insider Ticker: HAS
Market cap: $9.5B
Upside to price target: 57.2%
Source: Goldman Sachs
31. Alphabet
Markets Insider Ticker: GOOGL
Market cap: $1,300B
Upside to price target: 56.8%
Source: Goldman Sachs
32. Microsoft
Markets Insider Ticker: MSFT
Market cap: $1,760B
Upside to price target: 56.7%
Source: Goldman Sachs
33. Amazon
Markets Insider Ticker: AMZN
Market cap: $1,180B
Upside to price target: 54.9%
Source: Goldman Sachs
34. Iron Mountain
Markets Insider Ticker: IRM
Market cap: $13.6B
Upside to price target: 54.7%
Source: Goldman Sachs
35. Textron
Markets Insider Ticker: TXT
Market cap: $13B
Upside to price target: 54.5%
Source: Goldman Sachs
36. Caterpillar
Markets Insider Ticker: CAT
Market cap: $93.8B
Upside to price target: 53.6%
Source: Goldman Sachs
37. Leidos Holdings
Markets Insider Ticker: LDOS
Market cap: $12.5B
Upside to price target: 53.2%
Source: Goldman Sachs
38. United Rentals
Markets Insider Ticker: URI
Market cap: $20B
Upside to price target: 51.8%
Source: Goldman Sachs
39. Bath & Body Works
Markets Insider Ticker: BBWI
Market cap: $7.9B
Upside to price target: 50.3%
Source: Goldman Sachs
40. Halliburton
Markets Insider Ticker: HAL
Market cap: $28.1B
Upside to price target: 50.3
Source: Goldman Sachs
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