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Goldman says hide out in these stocks with big margins as earnings take hit from coronavirus

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Traders work on the floor at the New York Stock Exchange, January 14, 2020.
Brendan McDermid | Reuters

A rebound in earnings growth that investors anticipated might get derailed by the coronavirus, Goldman Sachs warned, advising clients to hide out in its portfolio of companies with high and stable gross margins.

"Earnings risks are tilted to the downside," David Kostin, Goldman's head of U.S. equity strategy, said in a note on Friday. "Some stocks likely to be affected by the coronavirus outbreak, such as airlines, cruises, and stocks with high China sales, have also experienced more negative EPS revisions than sector peers."

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