Goldman Sachs: These 40 stocks have the most upside right now as the early October market rally unwinds

goldman-sachs:-these-40-stocks-have-the-most-upside-right-now-as-the-early-october-market-rally-unwinds

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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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