November 27, 2020

Market and Financial News Aggregator

These stocks would benefit the most from a vaccine-driven economic recovery, Goldman says

1 min read

The Wall Street Bull (The Charging Bull) is seen during Covid-19 pandemic in New York, on May 26, 2020.

Tayfun Coskun | Anadolu Agency via Getty Images

(This story is for CNBC Pro subscribers only.)

Goldman Sachs believes the eventual arrival of a vaccine is expected to turbocharge the economic recovery and corporate earnings growth, and certain stocks stand to receive the biggest boost.

The bank screened the S&P 500 for stocks with the lowest consensus 2021 earnings estimates relative to their realized 2019 profits. These names are expected to have earnings next year that are still less than half the level in 2019. Now with the economic recovery accelerating, this list of companies could see a drastic rebound in profit estimates from here and have the potential to lead the market gains going forward, Goldman said.

“For investors searching for individual stocks that would benefit most from economic recovery, we screened for companies where the largest gap exists between the forecast level of consensus 2021 EPS and the level of pre-pandemic profits in 2019,” David Kostin, the bank’s chief U.S. equity strategy, said in a note on Wednesday.




2020-11-11 11:15:00


Read more from source here…

Leave a Reply