What's Happening?
Goldman Sachs has released a list of stocks that it believes have the potential for upward revisions during the upcoming earnings season. The third-quarter earnings season is set to begin next week, with major banks such as JPMorgan, Goldman Sachs, Morgan Stanley, Citibank, and Wells Fargo scheduled to report. Goldman Sachs has highlighted Hershey and Wynn Resorts as stocks with significant potential for post-earnings upside. Hershey, a chocolate and confectionery manufacturer, is expected to report earnings on October 30, and Goldman Sachs has set a price target of $222, which is 14% above its current share price. Wynn Resorts, a casino and resort operator, is also on Goldman's list, with a new price target of $150 per share, up from $124. The company is set to release earnings on November 6. Walt Disney is another stock on Goldman's list, with earnings expected on November 13. UBS has echoed bullish sentiments on Disney, citing parks and direct-to-consumer strategies as value drivers.
Why It's Important?
The identification of these stocks by Goldman Sachs is significant as it provides investors with insights into potential market movements during the earnings season. Hershey's potential for price increases and innovation under a new CEO could lead to a recovery in its stock price, benefiting investors who have seen a decline due to higher cocoa prices and waning demand. Wynn Resorts' favorable demographic exposure and market share gains in Macau present opportunities for growth, especially with upcoming events like the UAE Investor Event. Disney's focus on parks and direct-to-consumer strategies could drive value, offering investors potential gains as new attractions and cruise capacities come online. These insights are crucial for investors looking to capitalize on stock movements during the earnings season.
What's Next?
As the earnings season progresses, investors will closely monitor the performance of these highlighted stocks. Hershey's new CEO is expected to drive innovation, potentially leading to price increases and improved stock performance. Wynn Resorts' upcoming UAE Investor Event in December could unlock further value, with the company's market share gains in Macau being a key focus. Disney's earnings report on November 13 will be watched for updates on its parks and direct-to-consumer strategies, which could impact its stock price. Investors will also pay attention to the broader market trends and economic indicators that could influence these stocks' performance.
Beyond the Headlines
The broader implications of these stock movements could affect various sectors, including consumer goods, entertainment, and gaming. Hershey's ability to innovate and raise prices could set a precedent for other companies in the confectionery industry facing similar challenges. Wynn Resorts' demographic exposure and market share gains in Macau highlight the importance of strategic positioning in the gaming industry. Disney's focus on parks and direct-to-consumer strategies underscores the evolving landscape of entertainment and media, with potential impacts on cable, satellite, and telecom services.
