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GOLDMAN SACHS: Buy these 10 stocks right now, as they're primed to rocket higher after their upcoming earnings reports

Feb 6, 2020, 18:41 IST
Reuters / Steve Nesius
  • Vishal Vivek, equity and derivatives strategist for Goldman Sachs, says stocks are having unusually bad reactions to earnings in recent weeks.
  • He's recommending investors focus on these 10 stocks because they have a better-than-average chance to climb after they report earnings later this month.
  • He argues that options market positioning data is especially valuable since the average stock is actually having a negative reaction to earnings this quarter.
  • Visit Business Insider's homepage for more stories.

It might be hard to tell with stocks near all-time highs, but in one critical respect, the current earnings season has been pretty disappointing.

Goldman Sachs equity and derivatives strategist Vishal Vivek says most S&P 500 stocks have actually fallen on the day they've reported their earnings, which is a break from what typically happens. Vivek says the average stock reaction at this point is one of the worst of the past 24 years.

That makes it that much more important to find stocks that have a better-than-average chance of making gains. Vivek says he's done that by combining options market data, short interest, and Goldman's own estimates.

Listed below are the 10 stocks that Vivek believes have the highest probability of a gain the day they report earnings. They're ranked from lowest to highest based on his calculation of how likely it is they are going to rise. All of these companies will make their quarterly reports over the next two weeks.

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Also provided are the stock moves being implied by options trading on the shares. While those fluctuations could be in either direction, Vivek's thinking is that buying the stocks with the highest likelihood of gains is a prudent way to realize positive returns.

Get the latest Goldman Sachs stock price here.
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