Don't give up on these stocks punished by earnings - Goldman
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During earnings season, Wall Street analysts continue to downgrade margin expectations. But there are some stocks that show resilience in that area, Goldman Sachs says.
Equity strategist David Kostin and team screened for S&P 500 (SP500) (NYSEARCA:SPY) (IVV) (VOO) stocks that "were punished by investors following 4Q EPS reports but beat margin expectations and where consensus expects margins will expand in 2023."
"These 20 firms achieved better margins in 4Q 2022 than consensus expected but underperformed their respective sectors on the day after reporting results," Kostin wrote in a note. "We include only stocks that consensus expects to expand net margins in 2023."
"The median stock in the screen is forecast to expand net margins by 85 bp in 2023 vs. 2022 (vs. -9 bp for the median S&P 500 (SPXU) (UPRO) (SPXL) (SSO) stock)." 
The stocks are:

T-Mobile (TMUS), return on day after report vs. sector -23 bps, consensus 2023 net margin expansion 709 bps
Incyte (INCY), -467, 454
United Airlines (UAL), -273, 321
SLB (SLB), -136, 218
Halliburton (HAL), -158, 212
Delta (DAL), -341, 172
Synopsys (SNPS), -346, 119
Alaska Air (ALK), -3, 113
Juniper Networks (JNPR), -635, 104
Becton Dickinson (BDX), -156, 97
Automatic Data Processing (ADP), -439, 72
Johnson Controls (JCI), -533, 69
F5 (FFIV), -41, 67
DXC Technology (DXC), -18, 55
Kimberly-Clark (KMB), -219, 42
Fortive (FTV), -389, 35
Trimble (TRMB), -444, 31
Corteva (CTVA), -356, 16
Gen Digital (GEN), -883, 12
United Health (UNH), -160, 6


List median -307, 85
S&P 500 median 51, -9

See Morgan Stanley's list of unfairly punished stocks.