Goldman’s five stocks to buy before earnings
Goldman Sachs says there’s still plenty of quality buying opportunities ahead of earnings. The Wall Street investment bank said companies such as Spotify are compelling, with more upside. Other buy-rated names screened by CNBC Pro include Eli Lilly, Roblox, Carlyle Group and On Holding. Carlyle Group Buy this cheap stock ahead of earnings, according to analyst Alexander Blostein. The firm says it’s all about the asset management company’s inexpensive fees. “We think the firm’s historically lackluster management fee [compound annual growth rate] of just 4% from 2022-2025E is the primary structural driver behind the discount,” he wrote. Blostein also likes the company’s robust cash flow. “Further, CG’s accelerating cash flows from a robust monetization outlook could further supplement the firm’s growth via either more share repurchases or bolt-on M & A, in our view,” he added. Shares are up 4% over the last 12 months. The company is scheduled to report earnings on Feb. 6. Spotify Analyst Eric Sheridan says investors should buy the dip ahead of Spotify earnings on Feb. 10. The firm recently upgraded the stock to buy from neutral citing steady growth. “With SPOT shares having re-rated lower in recent months, we believe the long-term secular growth themes expressed above are now being underappreciated at current levels,” he wrote. Sheridan also says Spotify has pricing power and is bullish on the company’s new premium pricing tiers. “Looking over a long-term horizon, we see SPOT as well positioned against several long-term operating themes (which are reflected in our above-Street estimates) in the coming years,” he said. The stock is down almost 14% this year. On Holding A pullback in shares of this sneaker manufacturer could be an opportunity, according to Goldman. Analyst Richard Edwards upgraded the stock to buy from neutral recently and says it’s just too attractive to ignore at current levels. “High frequency data points to a strong 4Q25 for On, the running trend continues to accelerate which should be supportive for the group,” he wrote. The firm also sees a high “potential for gross margin upside” when it reports results, and added that its performance is generally representative of higher-end consumer’s spending patterns. On is scheduled to report earnings in March and the stock is down 3% this year. Spotify “Looking over a long-term horizon, we see SPOT as well positioned against several long-term operating themes (which are reflected in our above-Street estimates) in the coming years. … With SPOT shares having re-rated lower in recent months, we believe the long-term secular growth themes expressed above are now being underappreciated at current levels,.” Carlyle Group “We think the firm’s historically lackluster management fee CAGR of just 4% from 2022-2025E is the primary structural driver behind the discount. … Further, CG’s accelerating cash flows from a robust monetization outlook could further supplement the firm’s growth via either more share repurchases or bolt-on M & A, in our view. ” Eli Lilly “We expect that any pullbacks in LLY shares will remain short-lived given the solid growth algorithm afforded by the company’s pole position in the obesity market as well as potential tailwinds for orforglipron which continues to represent one of most significant new product cycles across our biopharma coverage.” Roblox “On the back of these key themes & into this earnings print – we reiterate our view that RBLX should be able to: 1) produce 20%+ compounded forward bookings growth; 2) see increased user monetization & payer conversion rates due to a number of initiatives – of which we see the company scaling optimized & dynamic pricing options across all experiences, advertising and social commerce as remaining areas that could drive additional growth contribution in the medium to long term.” On Holding “1) High frequency data points to a strong 4Q25 for On; 2) The running trend continues to accelerate which should be supportive for the group; 3) On over-indexes to the more resilient high-income consumer cohorts; 4) The market underestimates the potential for gross margin upside, especially in 1H26.”
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