Goldman Sachs Highlights Key Stock Picks Ahead of Q2 Earnings
As second-quarter earnings season kicks off, Goldman Sachs is flagging several stocks that could see notable moves—both up and down.
John Marshall, head of derivatives research at the firm, told CNBC that retail brokerages like Interactive Brokers (IBKR) and Charles Schwab (SCHW) may benefit from a rise in trading activity, even if retail buying has been more selective in recent months. “Activity remains high, and that momentum could support both stocks,” Marshall said.
Goldman is also turning bullish on John Deere (DE), viewing the agricultural equipment maker as poised to rebound with the farming sector nearing a cyclical low. The firm believes this timing could offer investors a favorable entry point as agricultural demand begins to pick up again.
Other tactical names on Goldman’s radar include Snowflake (SNOW), Air Lease (AL), YUM! Brands (YUM), and Hormel Foods (HRL)—each positioned to potentially outperform this earnings season based on sector trends and earnings potential.
Meanwhile, the firm is approaching some stocks with caution. Restoration Hardware (RH), while not reporting until September, faces tough year-over-year comparisons. Additional downside risks, according to Goldman, include Southwest Airlines (LUV), which continues to face margin pressures, and Boston Beer Company (SAM), which is struggling to regain momentum in a shifting beverage market.
Goldman’s strategy reflects a broader theme heading into earnings season: investors should look for tactical opportunities but remain selective, especially in sectors facing headwinds.
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