01 Mar Goldman loves these stocks and thinks the rest of Wall Street is underestimating their earnings
Goldman Sachs has its eyes on equities that have stronger earnings potential this year than the rest of Wall Street believes. Goldman highlighted to clients stocks where Wall Street analysts are raising their estimates, but not by enough. The firm’s earnings estimate for 2024 is at least 2% above the consensus estimate for these stocks. Goldman believes the rest of Wall Street will need to revise their earnings estimates upward by even more, driving gains for the shares. The stocks on this list also have at least 5% upside to Goldman’s price target and are buy rated by the firm. “We leverage GS analysts’ estimates to identity names where they see most upside to consensus top-and-bottom-line expectations,” the firm stated in the note. Stocks ended February higher, with some of the month’s strength coming from a fourth-quarter earnings season that largely surpassed Wall Street’s estimates, buoyed by solid results from heavyweights like Nvidia and Amazon. These stocks could help drive gains the rest of the year if they meet Goldman’s expectations. Here’s a look at some of the stocks on the Goldman list. Amazon , which recently joined the Dow Jones Industrial Average, made the cut. Shares of the e-commerce company have climbed more than 15% from the start of the year. AMZN YTD mountain Amazon stock. In February, the company easily surpassed Wall Street estimates on the top and bottom line, and predicted its first-quarter sales would jump between 8% and 13% from the prior year. Analysts have increased their 2024 earnings estimates by 16% year to date, according to Goldman. The firm said its own earnings estimates are now 5% above consensus estimate for the year. Goldman isn’t the only firm that is optimistic about Amazon’s performance. In a Feb. 21 note, JPMorgan Chase analyst Doug Anmuth reiterated that Amazon is one of the firm’s best ideas, as the analyst expects the company will continue to accelerate its market share gains as more purchases shift online. General Motors stock has climbed nearly 14% from the start of 2024. According to FactSet, average analyst price targets call for more than 22% upside ahead for shares of the Detroit-based automaker. GM YTD mountain General Motors stock. Analysts have increased their outlook for full-year earnings by 17% so far this year, Goldman said. Demand for electric vehicles was weak than expected in 2023, and there are fears that has softness continued into 2024. General Motors beat Wall Street fourth-quarter estimates and forecast stronger-than-expected 2024 earnings in the range of $8.50 to $9.50 per share. Analysts polled by FactSet had expected a 2024 profit $7.75 per share at that time. Goldman Sachs now predicts the company will earn $9.10 per share, which is roughly 2% higher than Wall Street estimates, it said in a research note. In January, UBS analyst Joseph Spak said he expects GM earnings could benefit from a number of factors, including costs from the United Auto Workers strike abating and lower investment in the Cruise self-driving initiative. Other stocks that made Goldman’s list include Expedia , Pinterest and State Street .