Goldman Sachs Names ‘Tactical Trades’ for ‘Unusually Volatile’ Earnings Season
2022.07.12 16:36
Goldman Sachs Names ‘Tactical Trades’ for ‘Unusually Volatile’ Earnings Season
Goldman Sachs strategist John Marshall warned clients that the upcoming earnings session is likely to yield unusually high volatility for single stocks – Budrigannews.com
Whether the company delivers a beat or miss will be “increasingly relevant this quarter as growth slows,” Marshall told clients in a note.
On a positive note, “high fear priced for earnings sets stocks up for relief rallies on earnings-day,” Marshall added.
The strategist added that macro flows indicate there is an upside risk for equities.
“Our analysis of nine statistically significant flow variables suggests the S&P 500 should be 6% higher than current levels. Strong ETF flows have continued, but professional investors have reduced risk over the past week.”
A team of equity strategists at Goldman Sachs came up with the list of 25 “tactical trades” – companies where GS is most out-of-consensus for the coming quarter and expect shares to move.
Some of the names included in the ‘positive’ list are: Mattel (NASDAQ:MAT), Pioneer Natural (NYSE:PXD), CrowdStrike (NASDAQ:CRWD), Atlassian (NASDAQ:TEAM), and Datadog (NASDAQ:DDOG)
On the other hand, Goldman Sachs strategists see a downside to estimates for companies like Coinbase (NASDAQ:COIN), Ralph Lauren (NYSE:RL), and eBay (NASDAQ:EBAY).
