Here are Goldman's top trades for earnings season

Goldman Sachs has identified Hershey (HSY) and Wynn Resorts (WYNN) as key stocks with potential for significant post-earnings upside ahead of the upcoming third-quarter reporting season, projecting 14% and 23% gains, respectively. The firm anticipates Hershey's growth from a new CEO and pricing power, while Wynn is expected to benefit from strong assets, Macau market share gains, and upcoming catalysts. Additionally, Walt Disney (DIS) was also on Goldman's list, with UBS echoing bullish sentiment and forecasting a 23% upside driven by park performance and direct-to-consumer initiatives.

Analysis

Goldman Sachs has identified Hershey (HSY) and Wynn Resorts (WYNN) as key stocks with significant potential for post-earnings upside, projecting 14% and 23% gains respectively, as the third-quarter earnings season commences next week. This period will see approximately 7% of the S&P 500, or 34 companies, report their latest quarterly results.

Hershey, set to report on October 30, was added to Goldman's top conviction ideas list with a $222 price target. The firm anticipates a new CEO driving innovation and room for price increases to align with white label competitors, despite recent underperformance attributed to higher cocoa prices and obesity drug proliferation concerns.

Wynn Resorts, reporting on November 6, also received a bullish outlook from Goldman, with a $150 price target implying a 23% upside. This conviction is based on the company's best-in-class assets, observed market share gains in Macau, and a visible catalyst path including a December UAE Investor Event and the 1Q27 opening date.

Walt Disney (DIS) was additionally highlighted by Goldman, with UBS echoing a bullish sentiment and a $138 price target, suggesting a 23% upside. UBS expects parks to drive value through new attractions and cruise capacity, alongside direct-to-consumer (DTC) initiatives such as price increases and Hulu synergies.

Key Decisions for Investors

• Consider the strong analyst conviction from Goldman Sachs and UBS on Hershey, Wynn Resorts, and Walt Disney, particularly ahead of their Q3 earnings reports.
• Monitor specific company catalysts such as Hershey's new CEO-led innovation and pricing power, Wynn's Macau market share gains and UAE development, and Disney's park attractions and DTC synergies.
• Evaluate potential risks, including cocoa price volatility and obesity drug impact for Hershey, and broader economic conditions affecting travel and entertainment for Wynn and Disney.