Goldman Sachs Executive Reveals Stock Picks, Outlines Tactical Trades Ahead of Q2 Earnings

A Goldman Sachs executive is outlining potentially tactical stock trades as second-quarter earnings reports begin to roll out in mid-July.

John Marshall, Goldman’s head of derivatives research, says in a new interview with CNBC that the brokerages Interactive Brokers (IBKR) and Charles Schwab (SCHW) are benefiting from a surge in retail trading activity, which could boost their stock prices.

“The retail activity – while they may not have been buying intensely over the last couple of months, they’ve been very active, and that should be a tailwind for both of them.” 

Marshall also says Goldman believes the equipment and machinery giant John Deere (DE) could benefit from the agricultural cycle, which the firm believes is at a cyclical bottom.

Goldman Sachs’ other tactical trades related to Q2 earnings reports include the cloud-based data storage firm Snowflake (SNOW), the aircraft leasing company Air Lease Corporation (AL), the restaurant franchise giant YUM! (YUM) and the global branded food company Hormel Foods (HRL).

In terms of stocks that could slide in price due to earnings reports, Marshall mentions the furniture giant Restoration Hardware (RH).

“While they don’t report until September, that’s a name which has tough compares.”

Other stocks that Goldman thinks could have potential downside include the airline giant Southwest (LUV) and the Boston Beer Company (SAM).

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