Goldman Sachs’ 13 Most Bullish Investments

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  • Goldman Sachs says US stocks are up 10% overall for the rest of 2022.
  • Like many companies, Goldman sees a market of stock pickers ahead of it.
  • Chief US equity strategist David Kostin said eight stocks could double in value over the next year.

Like many of its Wall Street brethren, Goldman Sachs has steadily lowered its expectations for the stock market in the first half of 2022.

In May, the company estimates that the S&P 500 will end the year at 4,300, about 10% above its current level. That target would have been a serious disappointment for most traders on Jan. 1, but after the index’s worst first half in over 50 years, a rally like that would at least alleviate some of the pain.

Still, chief US equity strategist David Kostin says earnings forecasts for S&P 500 companies are too high for this year and next. If he’s right and investors conclude earnings won’t live up to their expectations, it could lead to even more stock market action.


volatility

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While Kostin expects the United States not to fall into a


recession

next year, he says the S&P 500 could drop to 3,150 in a recession. That would wipe out a year of gains.

And it doesn’t look like economic stimulus packages, accommodative monetary policy or rock-bottom interest rates will continue to drive stocks higher in relative unison. So Goldman Sachs, like many other companies, thinks this will be a stock picker’s market.

To that end, Kostin has just released a list of S&P 500 stocks with the most upside against his company’s price targets. Unsurprisingly, stocks that have come under fire during the pandemic due to their sensitivity to COVID-19 are well represented. These include casinos, cruise lines, and travel-related businesses.

The 13 stocks are ranked below from lowest to highest based on the upside potential Goldman Sachs thinks they offer against these price targets. Percentages were calculated based on Thursday’s closing prices.

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