The stock market’s recent meltdown has been based on a potent combination of omicron fears, rising inflation, and the prospect of the Fed hiking rates at a rapid pace in an effort to curb the surge. As such, the real prospect of a bear market has reared its ugly head.
However, Goldman Sachs’ chief global equity strategist Peter Oppenheimer does not think it is time to sound the alarm; Oppenheimer believes any rate hikes this year won’t be too steep. This should mark the current period as a correction which will allow the bull market to continue, rather than signifying the beginning of a new down cycle. In fact, the strategist has some simple advice for investors.
“Any further significant weakness at the index level should be seen as a buying opportunity, in our view, albeit with moderate upside through the year as a whole,” Oppenheimer wrote.
Against this backdrop, the analysts at Goldman Sachs have been scouring the heap of discounted stocks and have zeroed in on 3 names which they see as primed to push higher from here – by an order of 70% or more, as it happens.
We ran these tickers through the TipRanks database to see what the rest of the Street makes of their chances. Turns out the analyst consensus rates all 3 as Strong Buys with plenty of gains projected too. Let’s take a closer look.
Bath & Body Words (BBWI)
We’ll start with a well-known name in retail, Bath & Body Works. Last March, this retailer underwent an upper-level restructuring, when the parent company, L-Brands, spun off its other subsidiary, Victoria’s Secret, as an independent entity. After the split was complete, L-Brands changed its name to Bath & Body Works, to reflect that it now has just the one subsidiary, and changed the ticker to BBWI.
Looking ahead to the Q4 numbers, the company released optimistic forecast earlier this month. The company had previously published earnings guidance for the fourth quarter of $2.10 to $2.25 per share; in its revision, the company has said that it expects earnings to be at the high end of that range, well above the 4Q20 EPS of $1.96. The company will…