These stocks reporting earnings in April are tactical trade candidates, Goldman says

Published Sun, Apr 18 20216:32 AM EDT

Jesse Pound @/in/jesse-pound @jesserpound

The first week of earnings season has already delivered some big beats, and there could be more to come in the final two weeks of April, according to Goldman Sachs. The investment bank's derivatives research team said in a note to clients that options markets are pointing to upside moves broadly for stocks during earnings season, and there are still opportunities out there. "Recent data from the options market and investment flows show that investors are positioned for upside asymmetry this quarter. While our analysts expect an unusually high number of stocks to beat consensus, we take a more selective approach than normal to buying calls ahead of earnings," Goldman said in the note. The firm put together a list of stocks where Goldman analysts expect significant earnings beats in the next two weeks, making those stocks potentially attractive options plays. These stocks could be played with call options, with investors buying the rights to purchase shares at a set price in a bet that the stock will rise above that level. All of the names on the list have buy ratings from Goldman analysts. Two consumer-facing names on the list are Chipotle Mexican Grill and e-commerce platform Shopify . Those companies, which report on April 21 and 28, respectively. Both stocks have struggled over the past two months, with Chipotle still trading below where it closed on Feb. 9 after a sell-off later that month. Shopify, meanwhile, has barely started to climb back to its brief peak from mid-February. Shopify has one of the highest potential earnings surprises, with Goldman Sachs analysts projecting a result more than 20% above the Wall Street consensus for earnings per share. Other names on the list with nearly 20% earnings upside are Blackstone and Boston Beer , both of which are slated to report earnings on April 22. For both of those stocks, Goldman stands out as a bull among a generally tepid reception among Wall Street analysts. Blackstone has buy or outperform ratings from 53% of its analysts, according to FactSet, with the rest coming as hold or neutral. Boston Beer has positive ratings from 50% of its analysts, with 14% recommending to sell the stock, according to FactSet.

A woman wearing a facemas exits a Chipotle Mexican Grill restaurant with her takeout order on January 14, 2021 in Monterey Park, California.

Frederic J. Brown | AFP | Getty Images

The first week of earnings season has already delivered some big beats, and there could be more to come in the final two weeks of April, according to Goldman Sachs.

The investment bank's derivatives research team said in a note to clients that options markets are pointing to upside moves broadly for stocks during earnings season, and there are still opportunities out there.