There’s no doubt, Wall Street did not like Fed Chair Jerome Powell’s Jackson Hole speech. The markets tumbled after Powell stressed the central bank is committed to taming inflation and will implement another 75bp hike if that is what is needed to get the job done.
The markets might have thrown the toys out of the pram, but while cognizant of a bearish scenario, Goldman Sachs’ chief economist Jan Hatzius is not overly concerned, preferring to focus on Powell’s less hawkish commentary.
“We continue to expect the FOMC to slow the pace from here, delivering a 50bp hike in September and 25bp hikes in November and December, for a terminal rate of 3.25-3.5%. However, additional CPI and employment reports will be available by the September meeting, and Powell stressed that the decision will ‘depend on the totality of the incoming data and the evolving outlook,’” the economist explained. “We see the risks to both the near-term pace and our terminal rate forecast as tilted to the upside.”
Upside is certainly on the menu for a pair of stocks Goldman Sachs is bullish on right now – the firm’s analyst Kash Rangan has pinpointed two names which he thinks have at least 100% growth on the menu for the coming months. We’ve used the TipRanks platform to find out how other Wall Street experts think the next year will pan out for these stocks.
Splunk (SPLK)
The first Goldman pick we’ll look at is Splunk, a big data analytics company. Splunk provides businesses with the tools to get insights from huge troves of data. The data can be used to inform business decisions and help operations run smoothly. The company is a known leader in IT operations and security, has an installed base of more than 20,000 customers, and boasts differentiated tech and a strong track record of innovation.
All that may be true, but Splunk has not been immune to the economic downturn, as was evident when the company delivered FQ2 earnings (July quarter) recently.
That’s not to say the report itself was a dud. The company’s revenue increased by 32% year-over-year to reach $798.75…
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