As Wall Street rebounds to start a new quarter, Goldman Sachs analysts searched for stocks that have the most to gain from here. The Dow Jones Industrial Average kicked off October with its best day since June after jumping more than 700 points on Monday. The S & P 500 advanced about 2.6%, while the Nasdaq Composite climbed 2.3%. The major averages added to those gains Tuesday, with the Dow up another 700 points and the S & P 500 and Nasdaq rising 2.9% and 3.3%, respectively. Those advances come after the S & P 500 had fallen into bear market territory during the third quarter, as investors navigated expectations of higher interest rates for longer, and weighed the scale and timing of a recession. The broader market index was has lost down about 20% this year. “In a soft landing scenario we expect the index to end the year at 3600 before rising to 4000 by year-end 2023. If investors price a hard landing scenario, we expect the index to fall to 3400 by year-end and trough around 3150,” read the note. Given this volatile environment, Goldman Sachs analysts identified stocks that have the most to gain, including four that they expect will double from here. They also identified stocks that have the furthest to fall going forward. Moderna could soar 150% from its Friday close, according to Goldman. The stock has been under pressure this year, falling roughly 50%. Still, the stock was upgraded to buy last month by Deutsche Bank , which said it’s raising estimates after Moderna reported a solid beat in its second-quarter earnings. Goldman also sees Boeing rallying 132%. The stock has fallen sharply year to date, losing roughly a third of its value. But Morgan Stanley’s Kristine Liwag wrote last month that investor concerns around China and Max 10 approval are “potentially overdone,” reiterating an overweight rating on the stock. Generac Holdings , meanwhile, could surge 128% from here, according to Goldman. Cowen analysts last week initiated the stock with an outperform rating , saying a housing slowdown is already priced in. The stock has cratered 48% this year. Other names that made the list include include Adobe and Mosaic . Goldman Sachs also identified stocks with the most downside from here. Netflix , which reported its best quarter since 2018 last month, is expected by Goldman to fall another 21%. The stock is already down nearly 61% this year, as slowing subscriber numbers and growing streaming competition weighed on the company. Consumer staple stock General Mills has outperformed this year, up more than 16%, as investors piled into the defensive name. Still, Goldman Sachs analysts thinks the stock is overbought, and sees downside of 16.5% for the cereal maker. Other stocks included in this list are J.M. Smucker and T. Rowe Price .
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