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Goldman Sachs Identifies High-Potential Stocks Amid Market Volatility

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Goldman Sachs Identifies Top Stocks for Market Upside Amid Volatility

AppLovin: Capitalizing on Industry Trends

Goldman Sachs remains bullish on AppLovin, a mobile marketing software platform company. The firm sees significant upside potential in the face of improving industry trends, backed by AppLovin's strong second-quarter earnings report. The company's focus on managing balanced growth and margin in its gaming portfolio, along with investments in artificial intelligence, positions it for above-average industry growth and a strong margin profile. Goldman Sachs raised its price target on the stock to $50 per share, reflecting its confidence in AppLovin's future performance.

Cedar Fair: Promising Attendance Trends

Goldman analyst Lizzie Dove expresses increased conviction in Cedar Fair, an Ohio-based amusement park company. The firm expects better underlying attendance trends to alleviate investor concerns about decreased consumer appetite for amusement parks. Despite pricing pressures, spending within the parks has exceeded expectations, particularly in food and beverage. This strength in spending is expected to partially offset muted ticket price growth. Goldman Sachs maintains its Buy rating on the stock and has raised its price target to $47 per share, emphasizing the potential for stronger EBITDA margins over time.

Gartner: Firing on All Cylinders

Goldman analyst George Tong highlights Gartner, an IT business services company, as firing on all cylinders. The firm sees valuation upside following Gartner's strong second-quarter earnings report, driven by robust global business and tech sales divisions. Gartner continues to experience double-digit subscription revenue growth and solid consulting and conference revenue. With attractive valuation upside and a compelling business model, Goldman Sachs views Gartner as an appealing investment opportunity.

In conclusion, Goldman Sachs has identified these stocks as having significant upside potential despite market volatility. AppLovin's evolution, Cedar Fair's attendance trends, and Gartner's strong performance showcase their resilience and growth prospects. Investors can consider these stocks as potential opportunities for capitalizing on market upside.

Implications for New Businesses Amid Market Volatility

Embracing Industry Trends and Innovations

Goldman Sachs' bullish stance on AppLovin underscores the importance of capitalizing on industry trends and innovations for new businesses. AppLovin's focus on balanced growth, margin management, and AI investments highlight the potential for businesses to achieve above-average growth by aligning their strategies with evolving industry trends.

Understanding Consumer Behavior and Spending Patterns

The case of Cedar Fair illustrates the importance of understanding and responding to consumer behavior and spending patterns. Despite pricing pressures, the amusement park company has managed to exceed spending expectations within its parks. New businesses can learn from Cedar Fair's strategy, focusing on enhancing customer experience and optimizing revenue streams.

Delivering Consistent Performance and Value

Gartner's strong performance, as highlighted by Goldman Sachs, emphasizes the importance of delivering consistent value and performance. By focusing on robust business and tech sales divisions, Gartner has managed to achieve double-digit subscription revenue growth. This serves as a valuable lesson for new businesses, underscoring the need for a compelling business model and consistent value delivery.

In conclusion, the stocks identified by Goldman Sachs offer valuable insights for new businesses. By embracing industry trends, understanding consumer behavior, and delivering consistent performance, new businesses can navigate market volatility and position themselves for success.

Story First Published at: https://www.cnbc.com/2023/08/19/goldman-picks-stocks-with-the-most-upside-amid-market-jitters.html
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