With the new trading year officially underway, investors may be able to see even more gains with some stocks that are already poised for upside ahead, according to Goldman Sachs. “We believe upside asymmetry will be particularly attractive in 2025 given our economist’s above-consensus GDP view and our equity strategists’ equity upside view for the year,” the firm wrote in a Wednesday note. Goldman’s strategists expect the S & P 500 to hit 6,500 by the end of 2025 as a result of their belief that both the U.S. economy and earnings will continue to grow. While the broad market index had a rough start to this year, it’s still on track for monthly gains, rising more than 1% month to date. Having that in mind, the firm screened for buy-rated focus names that have liquid options and positive implied call returns of more than 50%, as it sees call buying as an “attractive” opportunity for investors to “improve the potential risk-adjusted returns of implementing these views.” Below are some of the names that appeared on the list. In the industrials space, United Rentals was a standout name, having the second-highest implied call return in the group at 89%, as of data from Tuesday. Along with that, Goldman sees more growth in store for the stock, with its $950 price target implying more than 28% upside from Wednesday’s close. Its bullish view on the equipment rental company is among the 10 out of 22 analysts covering it on Wall Street who have a strong buy or buy rating, per LSEG data. By comparison, it has an average target of roughly $837, which reflects almost 13% upside potential. On Tuesday, the stock jumped about 6% after the company announced it’s going to acquire H & E Equipment Services for $92 per share in cash, putting the value of the deal at around $4.8 billion. That brings the stock’s month-to-date gains at more than 5%. URI mountain 2025-01-02 URI, month-to-date Also in the group was Delta Air Lines , which has an implied call return of 51%. Goldman’s $83 target on the carrier reflects more than 26% upside from here. Most analysts on the Street see growth for the name over the coming months, with 22 out of the 23 people covering Delta have a strong buy or buy rating. The sole remaining analyst has a hold rating. Its average price target of around $80 implies nearly 23% upside potential. Delta’s chief executive, Ed Bastian, said last week that 2025 is going to be the “best financial year in our history” after the company’s latest quarterly results beat earnings and revenue expectations. Following those results, shares jumped 9%, which puts the stock’s advance month to date at more than 8%. DAL mountain 2025-01-02 DAL, month-to-date Amgen was the top health-care name on the list, posting an implied call return of 247%. With a $370 price target, Goldman anticipates more than 37% upside for the stock, which has risen more than 3% this month. Out of the 33 analysts covering the biotechnology company, 16 have a strong buy or buy rating, while 14 have stepped to the sidelines with a hold rating. It has a consensus target of around $318, which implies shares could rise more than 18%.
These are Goldman’s favorite stocks for the year. How to trade them for maximum profit