These are the stocks you want to own when the economy starts to reopen, Goldman says

Published Tue, Apr 28 202010:33 AM EDT

(This story is for CNBC Pro subscribers only.) The stock market is rebounding as many states in the U.S. sketch out their reopening plans. For investors looking for opportunities amid the coronavirus recovery, Goldman Sachs said to buy goods-producing cyclical companies that are poised to experience a swift rebound. Here's what they mean and the stocks they are recommending. Companies that sell to other businesses, mostly suppliers in manufacturing and construction sectors, will benefit more immediately from the ramp-up in production upon the reopening, the bank said. Meanwhile, cyclical stocks are expected to outperform as economic growth accelerates, Goldman added. Goldman also advised its clients to avoid companies that sell directly to consumers and rely on face-to-face interactions with consumers as social distancing measures will still remain in place. "We expect goods-producing cyclical stocks will be the primary beneficiaries of the initial restart," Arjun Menon, U.S. portfolio strategist at Goldman, said in a note. "The reopening experience in China shows that manufacturing and construction activity will likely recover faster than consumer services." Businesses are starting to open their doors again as Alaska, Georgia, South Carolina, Tennessee, Texas and others take tentative steps to reopen their economies following the pandemic-triggered lockdowns. New York, specifically, will implement a phased-in reopening that begins with construction and manufacturing. Goldman found 38 stocks that have both goods-producing and cyclical characteristics. The bank excluded industry groups that likely have high direct-to-consumer revenue exposure, such as automobiles and apparel. In addition, energy stocks were excluded given the volatility in oil prices. The list include semiconductors Nvidia , Intel and Xilinx , which have all outperformed the broad market this year. While not immune from the coronavirus headwinds, chip makers are less impacted compared to many other industries. Nvidia is among the top 10 performers in the S & P 500 this year, rising 25%. It recently got a boost from its long-awaited merger of chip producer Mellanox Technologies . Goldman also highlighted electronics equipment manufacturer Keysight Technologies , and chemicals companies Ecolab and Air Products & Chemicals . Machinery companies IDEX , Illinois Tool Work s and Xylem are also expected to rebound more quickly than others. — CNBC's Michael Bloom contributed reporting.

In less than a week, GM converted 31,000 square feet of the 2.7 million-square-foot plant, which was decommissioned last year, from producing transmissions to face masks for first responders and health care workers on the frontlines of combating the coronavirus pandemic.

Michael Wayland / CNBC

(This story is for CNBC Pro subscribers only.)

The stock market is rebounding as many states in the U.S. sketch out their reopening plans. For investors looking for opportunities amid the coronavirus recovery, Goldman Sachs said to buy goods-producing cyclical companies that are poised to experience a swift rebound.

Here's what they mean and the stocks they are recommending.