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The trade if Goldman's oil plunge call is right

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Goldman Sachs sharply cut their 2016 price target forecasts for oil in a note to clients Friday morning. The firm said the oversupply dynamics could drive oil prices to as low as $20 a barrel compared to Friday's midmorning price of $44.

The price of crude oil is tumbling. It is down 10 percent for the month, 17 percent year to date and 52 percent in the last 12 months.

If Goldman is right and the price keeps sliding, there are stocks you want to buy and names you want to avoid in your portfolio.

We can start with equity strategy right from Goldman Sachs on how to play the firm's call. A report last month gave the companies that will have the biggest boost to their bottom lines from falling crude.

"Indeed the pullback in energy prices is likely to drive overall S&P 500 profit growth into negative territory for full-year 2015. With that said, the news isn't all that bad, particularly for those who take on oil and oil derivatives as input costs," wrote Goldman's Robert Boroujerdi.

"We think this tailwind still has some degree of discovery value with a number of companies citing the boost to margins from lower raw material. This tailwind is real and should provide a tail wind in future quarters," he added.

The analyst highlighted recent comments by the management of some of these companies on their quarterly conference calls that emphasized the benefits of lower commodity input costs.

Among the names recommended were American Airlines and Goodyear Tire.

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