Goldman Sachs on Tuesday updated clients on the stocks its analysts believe have the most upside and downside potential in the next 12 months.
Atop the Goldman upside list is embattled California utility PG&E, which saw its stock plummet as much as 90 percent between November and January. The bankrupt company is under scrutiny from investors and lawmakers as officials work to determine whether its equipment was responsible for the deadliest wildfire in California’s history.
Despite the plunge over the past six months, the stock is actually in the middle of a comeback as some investors bet the 2018 selloff is overdone. The stock is up 183 percent since a low close at $6.36 on Jan. 17, but Goldman analysts think it could soar another 111 percent over the next year.
Below are the stocks that have the most to run to get to their 12-month price target from Goldman.
Goldman also highlighted women’s fashion and personal care product company L Brands as set for a big pop. The company — which operates Victoria’s Secret and Bath & Body Works — has proven a tough bet for investors over the past three years amid decline sales at the hands of larger peers and online-focused retailers.
The stock is down about 65 percent since the start of 2016, well below the S&P 500’s 48 percent gain. That stock decline appeared to be slowing by April 2019, with the equity up 6.7 percent year to date. Goldman Sachs sees the stock rising more than 60 percent by April 2020.
Goldman Sachs also included the stocks its analysts feel are set for the most downside over the next 12 months, ranging from consumer staples like Clorox and Hershey to technology companies Juniper Technologies and Maxim Integrated Products.
For confectioner Hershey, Goldman analysts predict nearly 20 percent downside for its stock over the next 12 months.
The company has been facing scaling shipping costs and mounting competition has threatened its market share in the U.S. Its fourth-quarter comparable sales were largely flat, though its North American revenues slipped 0.3 percent amid a decline in prices.
Analysts also see downside for ingredient and spice company McCormick, which said in January that it expects weaker sales growth and weaker earnings in 2019. Despite a 12 percent sales bump in 2018, the company said earlier in the year that it sees revenue growth between 1 and 3 percent this year.
Goldman sees the equity sliding nearly 15 percent from a recent price around $149.