Earnings season is off and running and Goldman Sachs has named a host of stocks to buy ahead of the companies’ quarterly reports. The Wall Street investment bank urged investors to remain calm amid the latest uncertainty over the banking system and a possible recession, saying that there are plenty of quality buying opportunities. CNBC Pro combed through Goldman Sachs research to find stocks to own as first-quarter earnings kick off. They include Tesla, Boeing, CBRE , T-Mobile and Logitech. CBRE Group Goldman is standing by its buy rating on the real estate investment firm, even as lending standards tighten following the recent bank crisis. The firm did cut estimates on a variety of commercial real estate firms early last week, but says that CBRE is a standout that has the “quality, scale and capital allocation,” to succeed, analyst Chandni Luthra says. Although the stock is down almost 8% this year ahead of CBRE’s earnings report later this month, Luthra sees the “potential for opportunity.” Luthra called CBRE “resilient,” noting its robust balance sheet. “CBRE has the highest recurring revenue mix among [commercial real estate] brokers within our coverage, with 2022 recurring revenue mix tracking at 63%, vs 49% on average,” she wrote. The recurring business should in turn make earnings less volatile and is a key reason investors should own the stock right now, the analyst wrote. “We reiterate our Buy rating on CBRE for its high recurring business mix, strong balance sheet, and most importantly, share buybacks — a dynamic that sets it apart from peers,” Goldman added. T-Mobile The wireless provider is Goldman’s favorite growth stock, and favorite pick overall, the firm said in a recent earnings preview note to clients. “We expect 1Q23 subscriber trends across the major telecom and cable providers to remain largely consistent with 2H22,” analyst Brett Feldman wrote. Goldman says a key reason for its bullish thesis is that some telecom companies like T-Mobile are seeing momentum in the fixed wireless asset business in residential and business broadband service. “The primary reason that we expect sustained momentum is that both (TMUS & VZ) wireless carriers have expanded their fixed wireline asset (FWA) distribution,” he added. Feldman conceded that cellular postpaid subscriber additions would moderate throughout 2023, but said he still sees “accelerating share gains,” for T-Mobile. “However, we still expect TMUS to outperform the industry,” he went on. T-Mobile is expected to report quarterly earnings in early May. Shares of the wireless carrier are up almost 7% this year. Boeing The turnaround continues for the aerospace company, analyst Noah Poponak said ahead of Boeing’s earnings report on April 26. Poponak wrote before Boeing slid 5.6% Friday after pausing some 737 Max deliveries. Aircraft demand is heating up and supply chains appear “to be slowly improving, and we expect rate breaks to higher production within the next few months,” Poponak wrote. Another positive catalyst is the Paris Air Show which takes place Boeing’s quarterly results, Goldman said. Poponak says the stock usually outperforms in the leadup to the air show. “We expect a constructive tone from aircraft and engine OEMs during the earnings period on ability to increase output as they move through the year,” he said. Earlier this week, Boeing said it delivered 64 planes in March, topping Street estimates and the most since last December. Although the stock is up almost 6% in 2023, Goldman says investors should accumulate shares. “We see an in-line quarter, reiteration of full year guidance, and firm discussion of higher rates; all while market expectations remain relatively low,” he went on to say. Tesla “We remain positive on Tesla shares, although we modestly lower our 2023/2024 EPS estimates & our 12 month price-target reflecting the lower US vehicle pricing the company instituted on 4/6/23. … .We maintain our Buy rating on TSLA shares as we continue to believe that the company is well positioned for long term growth given its leadership position both in terms of cost structure and as a full solution provider in clean mobility (e.g. software, services, and charging).” T-Mobile “We expect 1Q23 subscriber trends across the major telecom and cable providers to remain largely consistent with 2H22. … .The primary reason that we expect sustained momentum is that both (TMUS & VZ) wireless carriers have expanded their fixed wireline asset (FWA) distribution. … .We expect 2023 to show continued momentum at wireless ‘challengers,’ with T-Mobile and cable MVNOs accelerating share gains. … .However, we still expect TMUS to outperform the industry.” Logitech “Following Logitech’s Analyst and Investor Day, we update our estimates to factor in the latest guidance and management commentary reflecting an uncertain macro. We remain positive on the long-term drivers of top-line expansion and see scope for y-o-y growth rates to improve into 2HFY24, against the backdrop of discounted stock valuation.” CBRE Group “We remain Buy on CBRE and CIGI for their quality, scale & capital allocation. … .We reiterate our Buy rating on CBRE for its high recurring business mix, strong balance sheet & most importantly, share buybacks — a dynamic that sets it apart from peers. … At these levels, we think there is potential for opportunity in CBRE and CIGI. … .Resilient business. … .CBRE has the highest recurring revenue mix among CRE brokers within our coverage, with 2022 recurring revenue mix tracking at 63%, vs 49% on average.” Boeing “Supply chain appears to be slowly improving, and we expect rate breaks to higher production within the next few months. We expect a constructive tone from aircraft and engine OEMs during the earnings period on ability to increase output as they move through the year. … .We see an in-line quarter, reiteration of full year guidance, and firm discussion of higher rates; all while market expectations remain relatively low.”
