Goldman Sachs Singles Out Stocks for Earnings Season Upside

Goldman Sachs has identified five stocks it believes will outperform in the upcoming earnings season. The list includes Nu Holdings, parent company of Brazilian digital bank Nubank, and Disney, which have both seen losses this year.

Nu Holdings shares are down nearly 30% from their 52-week high, while Disney's stock has shed over 10%. UPS and Omnicom also made the cut, with Goldman analysts pointing to synergies and growth opportunities in these companies.

The only gainer on the list is Baker Hughes, which has seen a 23% increase in value this year. Analysts at Goldman Sachs believe that Nu's entry into US consumer credit will be successful, citing its ultra-low cost digital approach and strong consumer experience.

Goldman also expects consistent profit growth from UPS as it completes the winding down of its Amazon volumes and related cost cuts. Meanwhile, Wall Street may be underestimating Omnicom's organic growth, led by double-digit expansion in its media business.