28 stocks to buy for up to 162% earnings growth as markets surge another 10%: Goldman Sachs --[Reported by Umva mag]

Goldman Sachs just raised its S&P 500 target for the fourth time in 12 months. Here are 25 companies set for outstanding earnings growth in 2025.

Oct 7, 2024 - 18:46

28 stocks to buy for up to 162% earnings growth as markets surge another 10%: Goldman Sachs --[Reported by Umva mag]

silhouette form of bull on financial stock market graph represent stock market rising or uptrend investment 3d illustration — This market rally is on solid ground, according to Goldman Sachs.
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US stocks are clicking on all cylinders, which led Goldman Sachs to lift its S&P 500 target again.
The top investment bank now expects the index to reach the 6,000 mark by year end.
Here are 25 companies set for outstanding earnings growth in 2025.

A leading Wall Street firm by any measure can't seem to keep up with the S&P 500's surges.

Goldman Sachs just raised its target for the index for the fourth time in less than 12 months. The financial titan originally set its 2024 S&P 500 target at 4,700, then lifted it a month later to 5,100. By February, the firm had revised it higher to 5,200, before boosting it to 5,600 over the summer.

But the S&P 500 has kept hurdling over milestones, so Goldman Sachs is once again raising the bar. The firm now expects it to reach 6,000 by year-end and 6,300 in the next 12 months. Those targets represent 4.6% upside through year-end and nearly 10% in the coming year.

GS earnings growth projection — Goldman Sachs

Stellar earnings growth inspired the change. David Kostin, Goldman's chief US equity strategist, wrote in his weekly note that he and his colleagues are calling for 8% profit growth this year. That would translate to $241 worth of S&P 500 earnings, before an 11% jump in 2025 to $268 and an additional 7% leap in 2026 to $288. The index's earnings multiple should stay near 22x.

Impressive performances from usual suspects also underpinned the S&P 500's move higher. Kostin noted in a separate early-October note that mega-cap growth stocks like Alphabet, Amazon, Apple, Meta, Microsoft, and Nvidia accounted for 44% of the market's gain through the third quarter, where it was up 20.8% and 22%, including dividends.

All 11 S&P 500 sectors are in positive territory this year, though some have fared much better than others. Communication services and information technology were the best year-to-date performers through the first week of October, though utilities weren't far behind since they also have exposure to artificial intelligence. However, this trade may be losing some steam.

"Performance of the AI infrastructure trade slowed in 3Q, with a basket of AI infrastructure stocks only rising by 4% vs. 15% during 1H," Kostin wrote in early October.

28 stocks to buy for strong profit growth

In recent weeks, Goldman Sachs has shared lists of stocks that are becoming more efficient, will benefit from dissipating wage growth, and are mid-sized standouts. This month, the firm shared a coveted list of companies with the strongest expected earnings growth in 2025.

Below are the 28 stocks among the 100 biggest names in the S&P 500 that analysts think will have higher profit growth than the index's 15% rate next year, along with their ticker, market capitalization, and expected earnings growth in 2024 and 2025. "NM" means "not meaningful."

1. Micron Technology

Ticker: MU

Market cap: $114.9B

Expected earnings growth in 2024: NM

Expected earnings growth in 2025: 162%

Source: Goldman Sachs

2. Uber Technologies

Ticker: UBER

Market cap: $156.9B

Expected earnings growth in 2024: 26%

Expected earnings growth in 2025: 113%

Source: Goldman Sachs

3. Gilead Sciences

Ticker: GILD

Market cap: $106.2B

Expected earnings growth in 2024: -43%

Expected earnings growth in 2025: 88%

Source: Goldman Sachs

4. Advanced Micro Devices

Ticker: AMD

Market cap: $277.7B

Expected earnings growth in 2024: 29%

Expected earnings growth in 2025: 60%

Source: Goldman Sachs

5. Nvidia

Ticker: NVDA

Market cap: $3,175B

Expected earnings growth in 2024: 118%

Expected earnings growth in 2025: 42%

Source: Goldman Sachs

6. Eli Lilly

Ticker: LLY

Market cap: $855.3B

Expected earnings growth in 2024: 160%

Expected earnings growth in 2025: 40%

Source: Goldman Sachs

7. Tesla

Ticker: TSLA

Market cap: $768.5B

Expected earnings growth in 2024: -27%

Expected earnings growth in 2025: 36%

Source: Goldman Sachs

8. KKR & Co.

Ticker: KKR

Market cap: $116.9B

Expected earnings growth in 2024: 36%

Expected earnings growth in 2025: 31%

Source: Goldman Sachs

9. Analog Devices

Ticker: ADI

Market cap: $112.3B

Expected earnings growth in 2024: -32%

Expected earnings growth in 2025: 31%

Source: Goldman Sachs

10. Blackstone

Ticker: BX

Market cap: $182.6B

Expected earnings growth in 2024: 16%

Expected earnings growth in 2025: 30%

Source: Goldman Sachs

11. Charles Schwab

Ticker: SCHW

Market cap: $118.9B

Expected earnings growth in 2024: -3%

Expected earnings growth in 2025: 29%

Source: Goldman Sachs

12. Prologis

Ticker: PLD

Market cap: $111.2B

Expected earnings growth in 2024: -19%

Expected earnings growth in 2025: 28%

Source: Goldman Sachs

13. Citigroup

Ticker: C

Market cap: $119.8B

Expected earnings growth in 2024: -6%

Expected earnings growth in 2025: 26%

Source: Goldman Sachs

14. Lam Research

Ticker: LRCX

Market cap: $105B

Expected earnings growth in 2024: 17%

Expected earnings growth in 2025: 26%

Source: Goldman Sachs

15. Broadcom

Ticker: AVGO

Market cap: $827.7B

Expected earnings growth in 2024: 20%

Expected earnings growth in 2025: 25%

Source: Goldman Sachs

16. GE Aerospace

Ticker: GE

Market cap: $202.4B

Expected earnings growth in 2024: 51%

Expected earnings growth in 2025: 23%

Source: Goldman Sachs

17. Amazon

Ticker: AMZN

Market cap: $1,906B

Expected earnings growth in 2024: 66%

Expected earnings growth in 2025: 23%

Source: Goldman Sachs

18. Texas Instruments

Ticker: TXN

Market cap: $184.1B

Expected earnings growth in 2024: -26%

Expected earnings growth in 2025: 22%

Source: Goldman Sachs

19. KLA

Ticker: KLAC

Market cap: $105.2B

Expected earnings growth in 2024: 14%

Expected earnings growth in 2025: 21%

Source: Goldman Sachs

20. Merck

Ticker: MRK

Market cap: $275.9B

Expected earnings growth in 2024: 438%

Expected earnings growth in 2025: 21%

Source: Goldman Sachs

21. Netflix

Ticker: NFLX

Market cap: $305B

Expected earnings growth in 2024: 56%

Expected earnings growth in 2025: 20%

Source: Goldman Sachs

22. ServiceNow

Ticker: NOW

Market cap: $188.7B

Expected earnings growth in 2024: 29%

Expected earnings growth in 2025: 20%

Source: Goldman Sachs

23. T-Mobile

Ticker: TMUS

Market cap: $244.6B

Expected earnings growth in 2024: 35%

Expected earnings growth in 2025: 18%

Source: Goldman Sachs

24. Applied Materials

Ticker: AMAT

Market cap: $165.9B

Expected earnings growth in 2024: 5%

Expected earnings growth in 2025: 17%

Source: Goldman Sachs

25. Mastercard

Ticker: MA

Market cap: $456.6B

Expected earnings growth in 2024: 15%

Expected earnings growth in 2025: 16%

Source: Goldman Sachs

26. Intuit

Ticker: INTU

Market cap: $169.8B

Expected earnings growth in 2024: 11%

Expected earnings growth in 2025: 16%

Source: Goldman Sachs

27. Fiserv

Ticker: FI

Market cap: $107.2B

Expected earnings growth in 2024: 11%

Expected earnings growth in 2025: 16%

Source: Goldman Sachs

28. Intuitive Surgical

Ticker: ISRG

Market cap: $168.6B

Expected earnings growth in 2024: 17%

Expected earnings growth in 2025: 16%

Source: Goldman Sachs

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