Goldman analysts led by David Kostin have some suggestions for investors looking for ideas in a volatile market environment. By looking at companies with the greatest difference between analysts’ price targets and the current stock price, they recommend 40 buys and 40 sells.
Here are the 40 names that Goldman figures have the most upside, along with Goldman’s own rating (Buy-Neutral-Sell).
And here are the 40 names that Goldman figures have the most downside, using the same criteria.
The last time Goldman made a big call on the market, on Aug. 17, they said the S&P 500 was likely to end the year at 2,100. That was just before the market dropped like a stone. Its analysts have since changed their minds and are now saying the S&P 500 will end 2015 in the red at 2,000.
So the point is to take these two lists with a generous helping of salt. The best way to use these lists is to consider them a starting point for further investigation. If you happen to own one of the “sell” names, it might be a good time to review your investment thesis. For “buy” names, do some due diligence and run them through your regular screens and filters to see whether or not you would buy them based on your own criteria.