Goldman says these names offer upside as stock picking gets tougher

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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