After a vicious drubbing in 2022 that led to growth and technology stocks sometimes bleeding as much as half of their value on the stock market, 2023 appears to be off to a good start. Companies such as Meta Platforms, Inc. (NASDAQ:META) are up by a whopping 94% year to date, giving some hope that perhaps, for the technology industry, the worst might be over.
This sentiment is also encouraged by statements from the Federal Reserve. The Fed's extremely hawkish actions last year aimed at bringing down inflation saw it increase U.S. benchmark interest rates by a massive 5 percentage points, bringing it up from the 0.25% rate that had been set during the onset of the coronavirus pandemic when the bank had cut rates by 2.5% in March 2020. At the same time, the Fed's latest meeting which saw it increase rates by 25 basis points (0.25%) came with optimistic commentary from both the monetary policy committee and chairman Jerome Powell.
Investment bank The Goldman Sachs Group, Inc. (NYSE:GS), on the other hand, is taking a look at the impact of the Fed rate hikes on the general economic health. The bank's outlook for 2023 is cautiously upbeat as well if we go by its Economic Outlook Report. Goldman believes that it is possible to reduce inflation without pushing the economy into a recession, and subsequently, it has diverged from the consensus view which is certain that a recession is on the horizon. Au contraire, the investment bank outlines that if the GDP growth is carefully managed - by keeping growth close to 1% for reducing labor demand to bringing down wages for diminishing purchasing power - then a recession, typically defined as consecutive quarters of reduced economic growth, can be avoided.
Naturally, this rather interesting balance of macroeconomic indicators also merits a look at what Goldman Sachs is recommending on the investment front, and which recommendations are performing well so far this year. Some of the companies that are covered in the article are Expedia Group, Inc. (NASDAQ:EXPE), Salesforce, Inc. (NYSE:CRM), and Warner Bros. Discovery, Inc. (NASDAQ:WBD).
Goldman Sachs' Top 15 Stock Picks for 2023
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Our Methodology
We used a list of Goldman Sachs' top stock picks for 2023 that were revealed earlier this year, and picked out those with the highest upside to price target.
First Solar, Inc. (NASDAQ:FSLR) is an American company that sells solar panels to different customers such as utilities and power producers. The firm is based in Tempe, Arizona.
First Solar, Inc. (NASDAQ:FSLR) is aggressively expanding its manufacturing capacity, as the firm announced in February 2023 that it will invest another $1.3 billion to make solar panels in Ohio. 45 of the 920 hedge funds polled by Insider Monkey during Q3 2022 had bought the company's shares.
First Solar, Inc. (NASDAQ:FSLR)'s largest investor is D.E. Shaw's D E Shaw which owns 899,979 shares that are worth $119 million.
Along with Warner Bros. Discovery, Inc. (NASDAQ:WBD), Expedia Group, Inc. (NASDAQ:EXPE), and Salesforce, Inc. (NYSE:CRM), First Solar, Inc. (NASDAQ:FSLR) is one of Goldman Sachs' stock picks for 2023.
Goldman Sachs' Share Price Upside For 20233: 55.9%
2023 Return through May 8th: 6%
PayPal Holdings, Inc. (NASDAQ:PYPL) is a payments platform provider that enables cross border transactions for businesses and consumers. It is headquartered in San Jose, California.
PayPal Holdings, Inc. (NASDAQ:PYPL) is another company facing the heat from inflation, as it revealed in February 2023 that consumer spending slowed down during last year's fourth quarter. By the end of last year's third quarter, 126 of the 920 hedge funds polled by Insider Monkey had invested in the firm.
PayPal Holdings, Inc. (NASDAQ:PYPL)'s largest investor in our database is Ken Fisher's Fisher Asset Management which owns 13.5 million shares that are worth $968 million.
CF Industries Holdings, Inc. (NYSE:CF) is a fertilizer company headquartered in Deerfield, Illinois. The firm sells hydrogen and nitrogen for fertilizers and other products.
CF Industries Holdings, Inc. (NYSE:CF) is another company targeting emissions reduction, as it signed an agreement with a Japanese company in January 2023 to supply 500,000 metric tons of clean ammonia produced with less carbon dioxide emissions. Insider Monkey took a look at 920 hedge fund portfolios for last year's September quarter to find out that 65 had bought the company's shares.
Live Nation Entertainment, Inc. (NYSE:LYV), as the name suggests, is an entertainment company. The firm holds concerts and conducts sponsorship drives.
Live Nation Entertainment, Inc. (NYSE:LYV) scored a win in February 2022 when a federal appeals court dismissed an antitrust lawsuit brought against the company. Insider Monkey's 920 hedge fund study for last year's third quarter revealed that 48 had held a stake in the company.
Robert Joseph Caruso's Select Equity Group is Live Nation Entertainment, Inc. (NYSE:LYV)'s largest hedge fund shareholder. It owns 10.9 million shares that are worth $779 million.
Hasbro, Inc. (NASDAQ:HAS) is an entertainment company that sells toys, physical games, and digital games. It is based in Pawtucket, Rhode Island.
Hasbro, Inc. (NASDAQ:HAS) is diversifying its product lineup in a rather interesting manner, as it announced in February 2023 that it will create new gaming experiences for older adults. As Q3 2022 ended, 33 of the 920 hedge funds polled by Insider Monkey had invested in the firm.
Hasbro, Inc. (NASDAQ:HAS)'s largest investor is Connor Haley's Alta Fox Capital Management which owns 3.1 million shares that are worth $213 million.
ServiceNow, Inc. (NYSE:NOW) is a software company that is headquartered in Santa Clara, California. The firm allows businesses to run analytics, automate their processes, conduct security operations, and manage daily operations such as procurement.
ServiceNow, Inc. (NYSE:NOW)'s CEO Mr. Bill McDermott's $25 million stock sale that was reported in February drew criticism as he was accused of cashing in on the company's recent share price gain. On the other hand, analysts countered by pointing out that he still has a large stake in the company courtesy of options and awards. As last year's third quarter ended, 103 of the 920 hedge funds polled by Insider Monkey had bought ServiceNow, Inc. (NYSE:NOW)'s shares.
ServiceNow, Inc. (NYSE:NOW)'s largest investor is Chase Coleman and Feroz Dewan's Tiger Global Management LLC which owns 1.6 million shares that are worth $639 million.
9. Trimble Inc. (NASDAQ:TRMB)
Goldman Sachs' Share Price Upside For 2023: 66.1%
2023 Return through May 8th: -6%
Trimble Inc. (NASDAQ:TRMB) is an instrument manufacturer headquartered in Westminster, Colorado. The firm makes and sells guidance, production, and steering systems alongside also providing software.
Trimble Inc. (NASDAQ:TRMB) gained a foothold in the highly lucrative self driving market in February 2023 when it announced a partnership with Nissan to develop self driving systems. Insider Monkey's third quarter of 2022 survey revealed that 31 out of 920 hedge funds had held a stake in the firm.
Trimble Inc. (NASDAQ:TRMB)'s largest hedge fund shareholder is Ian Simm's Impax Asset Management which owns 10.7 million shares that are worth $544 million.
Tesla, Inc. (NASDAQ:TSLA) is one of the world's largest electric vehicle manufacturers. The firm sells electric cars and power storage systems and is also working on its own truck called Cybertruck.
Tesla, Inc. (NASDAQ:TSLA)'s chief Mr. Elon Musk is aiming to unveil a new 'Master Plan' for his company at the firm's investor day slated to be held next month. This plan will outline how he aims to build a "fully sustainable energy future" for Earth. 88 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had held a stake in Tesla, Inc. (NASDAQ:TSLA).
Catherine D. Wood's ARK Investment Management is Tesla, Inc. (NASDAQ:TSLA)'s largest hedge fund shareholder. It owns 4.6 million shares that are worth $569 million.
Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company that develops vaccines for diseases such as cancer and immune system disorders.
Moderna, Inc. (NASDAQ:MRNA) has a powerhouse of a balance sheet, with $3 billion in cash and $5.3 billion in marketable securities, which leads it to have a small 7% of debt against stockholder equity. By the end of Q3 2022, 44 of the 920 hedge funds polled by Insider Monkey had held a stake in the firm.
Philipe Laffont's Coatue Management is Moderna, Inc. (NASDAQ:MRNA)'s largest investor with a $1.1 billion stake that comes via 6.3 million shares.
Match Group, Inc. (NASDAQ:MTCH) is a software company headquartered in Dallas, Texas. The firm provides dating applications such as Tinder and Match.
Match Group, Inc. (NASDAQ:MTCH) is another tech company that is reducing its workforce, as it announced an 8% reduction in February 2023. As far as hedge fund sentiment goes, 54 of the 920 in Insider Monkey's Q3 2022 database had held a stake in the firm.
Match Group, Inc. (NASDAQ:MTCH), Expedia Group, Inc. (NASDAQ:EXPE), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Salesforce, Inc. (NYSE:CRM), are some of Goldman Sachs' top performing stock picks for 2023.
