Here are 10 stocks Goldman Sachs expects to be winners after a wild first half for the market
Goldman Sachs just updated one of its stock baskets with its picks for the highest risk-adjusted returns.
The basket has outperformed the S&P 500 so far this year, gaining 3% year-to-date.
The S&P 500's overall risk-adjusted return has been lower than usual so far this year, strategists said.
It's been a volatile year for stock traders, but there are a handful of new winners in the S&P 500 that could be poised for big gains over the next 12 months, according to Goldman Sachs.
In a note to clients on Friday, the bank said it updated its Sharpe Ratio basket, a list of 50 stocks with the highest expected risk-adjusted returns. So far, the basket has gained 3% year-to-date, edging past the S&P 500's 1.7% gain.
The S&P 500's overall risk-adjusted return has been "lower than usual" so far in 2025, the strategists said, pointing to increased volatility and lower-than-average returns stemming from fears around tariffs.
The bank rebalanced its portfolio by choosing stocks with a high prospective Sharpe Ratio, a gauge for risk-adjusted returns calculated by dividing a percentage return to a stock's consensus 12-month price target by its six-month option-implied volatility.
"Currently, the median S&P 500 stock is expected to post an 11% return to its 12-month consensus price target with a 6-month implied volatility of 28, yielding a prospective risk-adjusted return of 0.4," the bank wrote.
Here are the top 10 newest additions to Goldman's Sharpe basket.
1. Moderna
Ticker: MRNA
Return to consensus price target: 88%
Expected return over implied volatility: 1.3
2. Viatris
ELSA BIYICK/Hans Lucas/AFP via Getty Images
Ticker: VTRS
Return to consensus price target: 61%
Expected return over implied volatility: 1.5
3. Enphase Energy
Ticker: ENPH
Return from consensus price target: 45%
4. PG&E Corp
Ticker: PCG
Return to consensus price target: 45%
Expected return over implied volatility: 1.1
5. Thermo Fisher Scientific
Return to consensus price target: 42%
Expected return over implied volatility: 1.2
6. Fiserv
Ticker: FI
Return to consensus price target: 37%
Expected return over implied volatility: 1.2
7. Cooper Companies
EyeEmTicker: COO
Return to consensus price target: 37%
Expected return over implied volatility: 1.2
8. Salesforce
Ticker: CRM
Return to consensus price target: 37%
Expected return over implied volatility: 1.1
9. Lennar Corp
Ticker: LEN
Return to consensus price target: 34%
Expected return over implied volatility: 0.9
10. EPAM Systems
Return to consensus price target: 33%
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