Goldman Sachs has named its favorite "alpha opportunities" in Europe — stocks the investment bank believes will deliver outsized returns relative to the market benchmarks. Despite the specter of sticky inflation and interest rate volatility, the Wall Street titan said a supportive macro backdrop with "above trend" global growth and lower market volatility will provide opportunities to generate alpha, the bank's strategists, led by Lilia Peytavin, said in a research note on Jan. 13. "We recommend stock picking efforts to be directed in sectors such as retail, healthcare, personal & [household] goods, travel and leisure and utilities, as they offer the best alpha opportunity set," Peytavin said. As for the retail sector, the bank likes Germany's Zalando , Global Fashion and About You , as well as the U.K.'s boohoo and Asos . The bank also noted an improvement in alpha returns in the telecoms and utilities sector, where its preferred picks include Italy's Enel , Germany's RWE , France's Engie , as well as Portugal's Energias de Portugal . Health care is another of Goldman's favored sectors. The bank's top picks in the sector include France's biopharmaceutical firm DBV Technologies and biotechnology firm Valneva , Germany's Immatics and Bayer , as well as Spanish pharmaceutical firm Grifols . Within the travel and leisure sector, Goldman likes Irish bookmaker Flutter Entertainment , Swedish online casino games maker Evolution , sports betting company Entain and low-cost carrier easyJet . British e-commerce firm THG , German personal care products manufacturer Beiersdorf , consumer goods giant Unilever and British supermarket chain Tesco are the bank's top picks in the personal care, drugs and grocery stores space.