Goldman: Best earnings trades

Published Thu, Oct 8 201511:14 AM EDTUpdated Thu, Oct 8 201512:13 PM EDT

With increasingly more volatile markets, Goldman Sachs told clients this is a great environment to make money trading earnings reports. Companies in the S & P 500 moved 3.8 percent on average on their earnings day last quarter, the highest level in three years. "S & P 500 stock dispersion rose to near a 10-year high during the last earnings season; we expect dispersion to rise yet again this earnings season, creating many single stock opportunities," Goldman's John Marshall wrote in a note to clients Thursday. Here are the stocks Goldman recommends after asking its research analysts for their best earnings trade ideas... Amazon , Chipotle , Ford and SunTrust are the companies Marshall highlights that have the most potential for upward earnings revisions. Amazon will leverage the $12 billion of capital expenditures over the last three years in infrastructure, Web services and logistics, which will lead to market share increases, more cash flow and higher profit margins, according to Goldman's technology analyst Heath Terry. He has a "buy" rating on Amazon and sees 14 percent upside in the next 12 months. Read More Who's next after Yum, NuSkin China shockers? Chipotle will benefit from lower food inflation and better-than-expected sales growth according to Goldman's restaurants analyst Karen Holthouse, who has a "buy" rating on the shares. She is optimistic the company's increased investment in technology such as mobile ordering and targeted marketing will pay dividends. Holthouse expects Chipotle to beat earnings this quarter and see 10 percent upside in the shares over the next 12 months. Ford will report a strong quarter due to the performance of the F-150, according to Goldman's autos analyst Pat Archambault. He sees earnings upside to be sustained over the next four quarters and expects a 29 percent rise in the shares in that time frame. Archambault has a "buy" rating on Ford. Read More Model X fails to steer Tesla out of the ditch SunTrust is the best-positioned financial company, according to Goldman's financials analyst Ryan Nash. He sees upside to earnings due to better expense control, lower incentive compensation and decreasing mortgage delinquencies. He has a "buy" rating on the shares with 21 percent upside over the next 12 months.

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With increasingly more volatile markets, Goldman Sachs told clients this is a great environment to make money trading earnings reports.

Companies in the S&P 500 moved 3.8 percent on average on their earnings day last quarter, the highest level in three years.

"S&P 500 stock dispersion rose to near a 10-year high during the last earnings season; we expect dispersion to rise yet again this earnings season, creating many single stock opportunities," Goldman's John Marshall wrote in a note to clients Thursday.

Here are the stocks Goldman recommends after asking its research analysts for their best earnings trade ideas...