Goldman Sachs Says Stock Picking Becoming Harder But Tesla, Twitter And Etsy Have Potential. Here’s Why.

Goldman Sachs Says Stock Picking Becoming Harder But Tesla, Twitter And Etsy Have Potential. Here’s Why.

Topline

With the stock market consistently hitting historic highs and volatility falling steadily—a combination that makes stock picking is more difficult than ever—analysts at Goldman Sachs this week identified a basket of stocks they say have the potential to offer significant upside for investors based on the new dynamics of the market.

A Tesla showroom and service in Amsterdam on October 23, 2019.



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Key Facts





Goldman's analysts identified stocks they say are more likely to move based on  “micro” factors (tax reform, infrastructure spending and company-specific news) rather than “macro” ones (the 2020 election or major stimulus legislation like the CARES Act or the American Rescue Plan).





The analysts identified their picks using a dispersion score, which is a measure of the range of potential returns on an asset based on that asset's previous returns and volatility. 





The higher the dispersion score, the more sensitive a stock is to company-specific news (like a new CEO or an important development within a particular industry) and the greater the chance it will move