Goldman Sachs: These 40 stocks have the biggest upside right now ahead of a Q4 market rally — including one that could rise over 175%

• US stocks have lost steam and are giving back much of their hard-earned gains.
• Goldman Sachs believes the S&P 500 will find a floor and reverse course in the next few months.
• Here are 40 high-upside stocks to buy as markets rally again.

At the start of 2023, investors would have been ecstatic to learn that US stocks were up more than 11% through the third quarter, given that the consensus forecast among Wall Street experts at the time was for a 5% gain for the year.

But, after the S&P 500 gained nearly 16% in the first half of the year, it feels like a letdown.

Stocks were hampered in the late summer and early fall by higher interest rates and bond yields, culminating in a 4.9% drop in September. Despite the drop, Goldman Sachs maintains its S&P 500 mid-year price target of 4,500, which is about 6% higher than current levels. Earnings growth will be gradual as multiples remain flat, according to David Kostin, the firm’s chief US equity strategist, in an October 2 note.

Other major investment firms agree with that bullish thesis. During the mid-September selloff, Bank of America raised its year-end S&P 500 target to 4,600, implying an 8.8% increase. Previously, the company raised its target from 4,000 to 4,300 before the end of the year.

Bank of America strategists wrote in an October 3 note that the fourth quarter is historically the strongest for US stocks, with the S&P 500 gaining an average of 4.8% in the final quarter of the year. According to the firm, stocks avoid the red 81% of the time in Q4, compared to 66% in the previous three quarters.

Another encouraging sign for investors is that BofA’s sell-side indicator currently indicates that stocks have a 95% chance of rising over the next year.

40 stocks with the most potential for growth right now

Goldman Sachs compiled a list of 40 stocks that its analysts believe have the most upside right now in order to prepare for an earnings-driven market rally in Q4. As of the end of September, every stock had at least 41.1% upside to the firm’s price targets.

These 40 stocks are listed below, along with their ticker, market capitalization, previous closing price, and price target upside.

1. Moderna

Ticker: MRNA

Market cap: $39.2B

Previous close: $103.10

Upside to price target: 175.9%

Source: Goldman Sachs

2. SolarEdge Technologies

Ticker: SEDG

Market cap: $6.8B

Previous close: $120.31

Upside to price target: 140.1%

Source: Goldman Sachs

3. FMC

Ticker: FMC

Market cap: $8.1B

Previous close: $65.16

Upside to price target: 101.6%

Source: Goldman Sachs

4. Incyte

Ticker: INCY

Market cap: $13.1B

Previous close: $58.56

Upside to price target: 97.3%

Source: Goldman Sachs

5. Organon & Co.

Ticker: OGN

Market cap: $4.2B

Previous close: $16.30

Upside to price target: 90.1%

Source: Goldman Sachs

6. Warner Bros. Discovery

Ticker: WBD

Market cap: $25.2B

Previous close: $10.35

Upside to price target: 84.2%

Source: Goldman Sachs

7. First Solar

Ticker: FSLR

Market cap: $16.2B

Previous close: $151.25

Upside to price target: 83.2%

Source: Goldman Sachs

8. Sealed Air

Ticker: SEE

Market cap: $4.5B

Previous close: $31.46

Upside to price target: 73.5%

Source: Goldman Sachs

9. Etsy

Ticker: ETSY

Market cap: $7.7B

Previous close: $62.29

Upside to price target: 70.3%

Source: Goldman Sachs

10. Biogen

Ticker: BIIB

Market cap: $36.4B

Previous close: $251.31

Upside to price target: 69.6%

Source: Goldman Sachs

11. Salesforce

Ticker: CRM

Market cap: $194.5B

Previous close: $199.83

Upside to price target: 67.7%

Source: Goldman Sachs

12. Enphase Energy

Ticker: ENPH

Market cap: $15.6B

Previous close: $114.22

Upside to price target: 65.6%

Source: Goldman Sachs

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13. Pfizer

Ticker: PFE

Market cap: $191.5B

Previous close: $33.91

Upside to price target: 62.8%

Source: Goldman Sachs

14. Boeing

Ticker: BA

Market cap: $114B

Previous close: $188.92

Upside to price target: 61.7%

Source: Goldman Sachs

15. Tapestry

Ticker: TPR

Market cap: $6.4B

Previous close: $27.95

Upside to price target: 60%

Source: Goldman Sachs

16. Walt Disney

Ticker: DIS

Market cap: $145.5B

Previous close: $79.54

Upside to price target: 57.9%

Source: Goldman Sachs

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17. SBA Communications

Ticker: SBAC

Market cap: $20.6B

Previous close: $189.98

Upside to price target: 54.9%

Source: Goldman Sachs

18. Bath & Body Works

Ticker: BBWI

Market cap: $7.4B

Previous close: $32.45

Upside to price target: 53.8%

Source: Goldman Sachs

19. Match Group

Ticker: MTCH

Market cap: $10.6B

Previous close: $38.15

Upside to price target: 53.2%

Source: Goldman Sachs

20. Bunge

Ticker: BG

Market cap: $15.9B

Previous close: $105.74

Upside to price target: 52.4%

Source: Goldman Sachs

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21. PayPal

Ticker: PYPL

Market cap: $62.9B

Previous close: $57.30

Upside to price target: 52.2%

Source: Goldman Sachs

22. Target

Ticker: TGT

Market cap: $49.5B

Previous close: $107.20

Upside to price target: 51.9

Source: Goldman Sachs

23. Mosaic

Ticker: MOS

Market cap: $11.3B

Previous close: $34.01

Upside to price target: 51.7%

Source: Goldman Sachs

24. Nike

Ticker: NKE

Market cap: $145.5B

Previous close: $95.09

Upside to price target: 51.6%

Source: Goldman Sachs

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25. Dollar General

Ticker: DG

Market cap: $23.2B

Previous close: $105.60

Upside to price target: 51.2%

Source: Goldman Sachs

26. Expedia Group

Ticker: EXPE

Market cap: $14.2B

Previous close: $98.77

Upside to price target: 50.4%

Source: Goldman Sachs

27. Johnson Controls

Ticker: JCI

Market cap: $35.4B

Previous close: $51.97

Upside to price target: 50.3%

Source: Goldman Sachs

28. Estee Lauder

Ticker: EL

Market cap: $50.4B

Previous close: $141.06

Upside to price target: 49.4%

Source: Goldman Sachs

29. Charles Schwab

Ticker: SCHW

Market cap: $93.4B

Previous close: $51.30

Upside to price target: 49.4%

Source: Goldman Sachs

30. Mohawk Industries

Ticker: MHK

Market cap: $5.2B

Previous close: $81.55

Upside to price target: 49.2%

Source: Goldman Sachs

31. General Motors

Ticker: GM

Market cap: $43.2B

Previous close: $31.38

Upside to price target: 48.6%

Source: Goldman Sachs

32. Xylem

Ticker: XYL

Market cap: $21.7B

Previous close: $90.16

Upside to price target: 48.3%

Source: Goldman Sachs

33. Alaska Air Group

Ticker: ALK

Market cap: $4.6B

Previous close: $35.80

Upside to price target: 45.6%

Source: Goldman Sachs

34. Aptiv

Ticker: APTV

Market cap: $26.8B

Previous close: $94.63

Upside to price target: 45%

Source: Goldman Sachs

35. NextEra Energy

Ticker: NEE

Market cap: $106.8B

Previous close: $52.78

Upside to price target: 44.9%

Source: Goldman Sachs

36. Kenvue

Ticker: KVUE

Market cap: $68.9B

Previous close: $19.99

Upside to price target: 44.4%

Source: Goldman Sachs

37. Prologis

Ticker: PLD

Market cap: $99.3B

Previous close: $107.50

Upside to price target: 44.4%

Source: Goldman Sachs

38. Simon Property Group

Ticker: SPG

Market cap: $33.8B

Previous close: $103.37

Upside to price target: 41.6%

Source: Goldman Sachs

39. Amazon

Ticker: AMZN

Market cap: $1,290B

Previous close: $124.72

Upside to price target: 41.6%

Source: Goldman Sachs

40. American Tower

Ticker: AMT

Market cap: $73.7B

Previous close: $158.10

Upside to price target: 41.1%

Source: Goldman Sachs