Goldman Sachs is looking forward to stock pickers coming in another year and can watch some stocks. According to David Kostin, chief U.S. equity strategist, the highest annual divergence level in the S&P 500 in 2024 does not include recession. This suggests that there is less correlation between individual stocks, providing investors with more opportunities to choose their attractions and potentially beat the wider market. “For active stock picking, this reflects the favorable environment for Alpha Generation,” Costin said. “From a basic perspective, the sign of a dispersed environment for healthy returns in 2024 is macroeconomic uncertainty,” Costin added. The importance of decline and debates surrounding AI and the U.S. elections is becoming increasingly important. “Costin said the market has been smaller than usual since early 2023. This is not expected to change anytime soon, and high returns diversification is expected to continue this year. Strategists say the outlook for 2025 is based in part on expectations for healthy economic growth, and ongoing distinction between stocks based on their AI. Given this background, Costin’s team is looking for stocks that can generate the highest returns based on a company-specific driver. He calculated this using the scatter fraction. In other words, the higher the score, the stronger the potential risk-adjusted return. Here are 10 names: Supermicro leads at nearly 32 points. This is very strong during the stock period. In 2025 alone, the stock has soared by more than 75%, making it the seventh consecutive year of competition. A major characteristic driver of the stock is the potential to mitigate regulatory scrutiny. Earlier this month, the company said it was confident it would meet the key SEC deadline. Wall Street analysts saw a pullback after this big run. Most of the people who voted for LSEG have a hold rating, and their price target reflects a disadvantage of over 16%. Enphase scored the second highest with a 20.5 standard and the P 500 stock. Unlike Super Micro, energy inventory presence fell 5% in 2025 and is extending for the third consecutive year. According to LSEG, most analysts also have a holding rating on the stock. However, typical price targets mean that stocks can rebound more than 21% next year. Stocks on this list may also increase volatility, just like some stocks in the past. For example, Super Micro gathered over 300% at some point last year and then dropped over 85% from that peak.
Watch these stocks and see strong returns for every Goldman Sachs | Real Time Headlines
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