Analysts at Goldman Sachs have picked a raft of global stocks to play the current market uncertainty. Goldman outlined a number of factors creating a volatile environment for European stocks in particular right now. Russia's invasion of Ukraine is dominating market sentiment, causing geopolitical uncertainty and sending oil and gas prices soaring . "Europe's reliance on Russian gas makes it vulnerable to lower supply and higher energy prices," the bank's analysts, led by Jessica Binder Graham, said in a note on March 3 called "Screens to Focus on amid the Volatility." She also noted that "uncertainty around the [monetary] policy outlook is elevated," as central banks weigh increasing inflation pressures with potential risks to the growth outlook. With this in mind, Graham published a number of stock screens to highlight "attractive opportunities" in European equities. 'Attractive opportunities' The bank looked for stocks that have strong growth and cash flow generation — those companies able to grow above inflation — as well as stocks that have sold off this year but have positive earnings momentum, according to the analysts. Goldman included the potential upside to its 12-month price target for all the stocks, and a number topped 50%. Goldman's top stock picks to buy include automaker Stellantis , with an estimated 75% potential upside to the bank's 12-month price target, and fashion brand Dr Martens , with a 91% potential upside. Both are on its list of "Strong Growth and High FCF Yield" stocks — a higher FCF, or free cashflow yield, is attractive to investors because it indicates that a company can pay its debt and dividends without difficulty. Other names on the list include machinery manufacturer Konecranes , with a potential 90% upside to its price target, and watchmaker Swatch Group , with 63%. Goldman's analysts also listed stocks where they see further upside to earnings. These include money transfer service Wise — with a 118% potential upside — as well as payment company Adyen , with 87% upside potential. Caller ID company TrueCaller is on the bank's list too, with a potential 67% upside to its 12-month price target. The bank also named buy-rated renewable energy stocks to buy as prices rise. Stock picks include Italian company Enel , with a 76% potential upside, as well as Energias de Portugal , with 57% and power cable company NKT with 54%. "From an equity market perspective, implications from here are likely to be seen through a rise in risk premium, rising energy costs impacting inflation concerns, and tighter financial conditions," the analysts added.
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Analysts at Goldman Sachs have picked a raft of global stocks to play the current market uncertainty.