Goldman Sachs Picks Stocks to Watch Ahead of Earnings Season
Goldman Sachs analysts have identified several companies poised for success as earnings season kicks off. These buy-rated stocks, according to the firm, are expected to deliver positive results and demonstrate strong growth potential.
Spotify Technology: Riding the Wave of Audio Dominance
Spotify Technology (SPOT) is highlighted as the clear global leader in the audio streaming market. Analyst Eric Sheridan points to several catalysts driving the company’s success, including continued user growth, increased engagement across various formats, and pricing power. Sheridan also notes the improvement in margins as Spotify achieves its long-awaited goals. The appointment of Christian Luiga as Chief Financial Officer in April adds another layer of confidence, with investors eagerly awaiting details on a more consistent shareholder return policy. Spotify’s stock has surged nearly 99% in 2024, reflecting the market’s optimism.
TKO Group: A Winning Streak in Sports Media
TKO Group, the owner of the UFC, is also receiving a bullish outlook from Goldman Sachs. Analyst Stephen Laszczyk cites a marked improvement in investor sentiment and highlights the enduring demand for mixed martial arts events. Laszczyk believes TKO is well-positioned to capitalize on robust sports rights competition, further strengthening its negotiating power. Despite the possibility of quarterly results falling short of consensus estimates, Goldman Sachs remains confident in TKO’s long-term prospects. TKO Group shares have climbed 56% in 2024.
LivaNova: Medical Device Company on the Rise
LivaNova, a medical device company, has recently been initiated with a buy rating by Goldman Sachs analyst David Roman. Roman encourages investors to take advantage of any dips in the stock price, believing that LivaNova is entering a period of clear and visible growth drivers. The analyst points to new product cycles and pipeline opportunities as potential catalysts for revenue and earnings per share (EPS) upside. Roman anticipates that LivaNova’s consistent results and improved margin profile will lead to a re-rating of the stock’s price-earnings (P/E) ratio over the next 12 months.