Goldman Sachs’ Top 25 Trading Ideas for Earnings Season By

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In a note to investors on Wednesday, Goldman Sachs analysts said the company recommends buying call options on certain stocks for which they anticipate upward revisions to consensus estimates.

“Earnings revisions outperformed last quarter despite a volatile macro environment; we expect fundamentals to boost equities again this quarter. Individual stock positioning is the weakest in years, as This is evidenced by the decline in individual stock option volumes, the increase in put and call option skew and net retail investor sales. created a headwind for broader equity performance over the next two weeks,” the analysts wrote. “We rely on new estimates and qualitative commentary from our equity analysts to identify the 25 most off-consensus opportunities in our coverage of the Americas.”

Goldman Sachs sees upside earnings revision potential for 17 stocks, including KBR (NYSE:), Meta Platforms (NASDAQ:), Maravai LifeSciences (NASDAQ:), Payoneer Global (NASDAQ:), Post Holdings (NYSE:), Raymond James Financial (NYSE:), and Snowflake (NYSE:), as it expects downward earnings revisions to drag down eight companies, including Franklin Resources (NYSE: ), Cinemark Holdings (NYSE:), and Intel Corporation (NASDAQ:).

“Retail investors continue to dominate the markets, but they have shifted from buying call options on individual stocks to buying call options on indices. The rise in indices is crowded, we prefer buy less crowded individual security call options to position ourselves for selective relief rallies,” the analysts added.

However, he acknowledged that 29% of the have made advance announcements in the past two quarters, “highlighting how difficult it has been for companies to forecast earnings in a rapidly changing macroeconomic environment.”

By Sam Boughedda

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