Goldman Sachs has expressed optimism about several companies ahead of their third-quarter earnings, suggesting that stocks like Disney, Baker Hughes, Nu Holdings, UPS, and Omnicom present attractive buying opportunities. Analyst Michael Ng remains bullish on Disney, viewing it as a multi-year earnings compounder despite lowering the price target from $144 to $140 per share.
He anticipates a 13% compound annual growth rate in earnings per share. Baker Hughes has been reinstated with a buy rating, with analyst Neil Mehta noting the benefits of its recent acquisition of Chart Industries, which is expected to enhance margins and revenue growth.
Nu Holdings is also highlighted for its potential in U.S. consumer credit lending, with analyst Tito Labarta optimistic about its low-cost digital approach. UPS is expected to see profit growth as it adjusts to changes in Amazon's volume, while Omnicom is anticipated to report strong organic growth driven by media, with shares trading at a favorable valuation.
Overall, Goldman Sachs' insights suggest a positive outlook for these companies as they prepare to report earnings in the coming weeks