Goldman Sachs Names 5 Stocks to Buy Before Earnings Season

Goldman Sachs has buy recommendations on five stocks as the next earnings season approaches. Four of those have declined in 2026, while Baker Hughes is the sole stock to have advanced.

The selections cover theme parks, parcel delivery, advertising, Latin American banking, and oilfield services. Each of the firms will release earnings between late October and mid-November.

Goldman Sachs Bets on Stocks That Have Dropped Sharply

Nu Holdings, which owns Brazilian digital bank Nubank, has suffered the biggest decline among the five. Its stock settled at $13.43 on October 2, a 19.77% drop from the start of the year. That level also puts Nu about 29% beneath its 52-week peak of $18.98.

Disney and Omnicom are in the middle of the group. Disney has lost 10.18% year to date, closing at $102.19, and Omnicom has fallen 8.17% to $74.15.

UPS has performed slightly better, dropping 6.22% to $93.02. Baker Hughes, on the other hand, has gone the other way, rising 22.97% in 2026 to finish at $56.

Consequently, roughly 43 percentage points divide the top and bottom performers among Goldman's five selections.

What Goldman Sees That the Market Has Overlooked

Regarding Nu, analyst Tito Labarta is concentrating on the bank's move into US consumer credit. He maintained a $23 price target, roughly 71% higher than Friday's closing price.

“We think NU’s ultra-low cost digital approach with a strong consumer experience could allow it to successfully enter the market,” Labarta stated.

For Disney, analyst Michael Ng lowered his target to $140 from $144, still about 37% above Friday's close.

Ng views Disney as being in the early phase of an investment cycle covering products and its Experiences segment. He projects that earnings per share (EPS) will grow at a compound rate of about 13% annually.

UPS has completed the reduction of its Amazon volumes, as stated in its second-quarter earnings release. Goldman anticipates steadier profit growth now that the drawdown and associated cost reductions are finished. The bank also envisions a more efficient, automated domestic network taking shape once the Amazon headwind diminishes.

Goldman also thinks that Wall Street is undervaluing Omnicom's organic growth, driven by double-digit increases in its media division. The firm highlighted Omnicom's October 20 report as a possible catalyst.

“With shares trading at 6x 2027e EPS, we think Q3 results could be a positive catalyst.”

Finally, Goldman resumed coverage of Baker Hughes last month with a buy rating and a $71 target. That level is about 27% above Friday's close.

Analyst Neil Mehta cited synergies from the Chart Industries acquisition, which has now closed. Goldman was one of Baker Hughes's advisors on that transaction and also assisted with its debt financing.

The recommendations run counter to a more guarded outlook for the season. Jim Cramer has cautioned that this quarter's earnings may not meet the high bar investors have grown used to.

Omnicom's October 20 release will provide the first test of Goldman's selections. UPS and Baker Hughes will report on October 27. Disney and Nu Holdings are scheduled to report last, around November 12.