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Goldman says these names offer upside as stock picking gets tougher

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Executives of Etsy applaud as they open the Nasdaq MarketSite ahead of Etsy's initial public offering in New York, April 16, 2015.
Michael Nagle | Bloomberg | Getty Images

As stock picking gets harder, Goldman Sachs says some names that move on micro events and company news offer the best opportunity for investors willing to take risk.

A stock market at all-time highs paired with falling volatility creates "a more challenging stock-picking environment," Goldman chief U.S. equity strategist David Kostin told clients.

With key macro events such as the 2020 election and the $1.9 trillion fiscal stimulus package in the past, micro events like tax reform, infrastructure spending and pricing power should influence stock movement. The firm said names that also move on company-specific news could provide the best opportunity for stock pickers who can afford the risk.

Goldman made a list of stocks that react to micro and company-specific news and assigned them a so-called dispersion score.

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