18 Stocks To Buy, 7 To Sell This Earnings Season: Goldman Sachs Calls It 'The Year Of The Stock Picker'

As the third-quarter earnings season approaches, Goldman Sachs has issued a note identifying key stock opportunities for investors looking to profit from financial results.

Analyst John Marshall and his team shared their insights on Thursday, highlighting 18 stocks that could benefit from upward earnings revisions and seven stocks likely to face downward revisions.

The ‘Stock Picker’s Year’: 10% Upside In S&P 500

Goldman Sachs analysts call 2024 "the year of the stock picker," emphasizing the importance of selective investing in a volatile earnings environment.

According to the investment bank’s latest projections, the average S&P 500 stock could see a 10% upside over the next 12 months.

"We see relief rally potential," Marshall stated in his note. "Directional positioning in the options market is balanced, a much better set-up than this time last quarter."

The analysts also observed that activity in options markets, both from hedge funds and retail traders, has decreased recently, signaling a "wait-and-see" approach as investors prepare for third-quarter earnings reports and the upcoming U.S. elections.

Earnings Season Volatility Remains Elevated

Goldman Sachs highlighted that single-stock volatility surrounding earnings events remains at a 14-year high.

This trend, driven by critical market debates on topics like artificial intelligence, interest rates, and the upcoming election, is expected to continue through the remainder of the year.

“We expect earnings day moves to remain elevated as most of the key debates for the market have winners and losers in the equity space,” the note added.

With this heightened volatility, the firm continues to recommend options-based strategies, advising investors to consider buying options ahead of earnings events and selling options between earnings periods to capitalize on price movements.

18 Stocks Goldman Sachs Is Bullish On For Third-Quarter Earnings

Goldman Sachs’ analysts have identified 18 stocks they believe are primed for upside as earnings revisions could be favorable. These stocks span a variety of sectors, from energy and financials to healthcare and technology.

Company	Sector	Earnings Date (e)
Gap Inc. GAP	Discretionary	Nov. 15
Permian Resources PR	Energy	Nov. 7
Citigroup Inc. C	Financials	Oct. 15
Synchrony Financial SYF	Financials	Oct. 16
Amgen Inc. AMGN	Healthcare	Oct. 30
Boston Scientific BSX	Healthcare	Oct. 23
Merck & Co. MRK	Healthcare	Oct. 31
Qiagen NV QGEN	Healthcare	Oct. 30
AZEK Company AZEK	Industrials	Nov. 29
ADT Inc. ADT	TMT	Nov. 1
Broadcom Inc. AVGO	TMT	Dec. 6
Dell Technologies DELL	TMT	Nov. 25
Klaviyo KVYO	TMT	Nov. 7
Monday.com Ltd. MNDY	TMT	Nov. 13
Nvidia Corp. NVDA	TMT	Nov. 21
Snowflake Inc. SNOW	TMT	Nov. 29
Toast Inc. TOST	TMT	Nov. 7
Sempra SRE	Utilities	Nov. 4

7 Stocks Goldman Sachs Is Bearish On For Third-Quarter Earnings

In contrast, the investment bank has identified seven stocks that they expect to face downward earnings revisions in the third quarter, advising investors to exercise caution.

Company	Sector	Earnings Date (e)
Choice Hotels CHH	Discretionary	Nov. 7
Cheniere Energy CQP	Energy	Nov. 1
Janus Henderson JHG	Financials	Oct. 31
LyondellBasell LYB	Materials	Nov. 1
Clorox Co. CLX	Staples	Nov. 1
Kraft Heinz Co. KHC	Staples	Oct. 30
Upstart Holdings UPST	TMT	Nov. 7

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Image created using artificial intelligence via Midjourney.