Goldman Sachs has identified Madison Square Garden Entertainment as an attractive stock option ahead of its earnings report. Analyst Stephen Laszczyk upgraded the stock to buy from neutral, highlighting positive catalysts on the horizon. The firm believes there is significant upside potential for Madison Square Garden Entertainment due to its unparalleled assets in the entertainment market. The combination of strong concert tours, fan demand for live entertainment, and robust corporate demand in New York is expected to drive growth for the company. With no signs of a slowdown in sight, the market characteristics should lead to increased venue utilization, pricing power, and continued demand for sponsorship and premium hospitality.

Despite a nearly 48% decline in stock value this year, Goldman Sachs views Affirm as a long-term secular winner. The negative sentiment surrounding the stock is deemed to be overdone, with analyst Will Nance expressing bullish sentiment ahead of earnings in late August. The partnership with Apple Pay, announced in June, is a significant growth driver for Affirm. The firm anticipates better-than-expected volumes, focusing on the earnings impact of the Apple Pay integration in 2025. The stock is considered compelling at current levels, with the Apple partnership providing a solid opportunity for the company to expand its distribution capabilities in e-commerce.

Waystar, a health-care payments service provider, is another stock endorsed by Goldman Sachs ahead of its earnings report. Analyst Adam Hotchkiss initiated coverage of the company with a buy rating, citing its unique position within the market and undervalued platform. Waystar’s total addressable market, combined with its current market share and end-market stability, presents a promising outlook for compounding growth. The stock has demonstrated a positive performance, with a 5.4% increase in the past month.

Described as a leading pure new energy vehicle player in China, Li Auto has garnered positive attention from Goldman Sachs. With a 5% market share in the new energy vehicle sector as of the first quarter of 2024, the company is projected to have the strongest model pipeline and sales network expansion in the upcoming year. The firm believes Li Auto will deliver rapid earnings growth and top-tier free cash flow generation among Chinese auto original equipment manufacturers.

Goldman Sachs also highlights CAE as a market leader in commercial aviation simulation and training with a highly regulated, recurring, and high-margin business. The firm’s sum-of-the-parts analysis suggests that CAE’s stock is significantly undervalued at present. The company’s size is identified as a competitive advantage, enabling better data quality for customers and the ability to offer competitive pricing.

When considering Goldman Sachs’ recommendations for these stocks ahead of their earnings reports, it is essential to acknowledge the potential biases or conflicts of interest that may exist. As an investment bank, Goldman Sachs may have vested interests in promoting certain stocks to benefit its clients or proprietary trading activities. Investors should conduct thorough research and exercise caution when making financial decisions based on analyst recommendations.

While the insights provided by Goldman Sachs offer valuable perspectives on potential stock opportunities, investors should critically evaluate the information presented and consider diverse sources of information before making investment decisions. Market conditions can be unpredictable, and individual stock performance may vary based on a range of factors beyond earnings reports. It is crucial for investors to conduct due diligence and seek professional advice to navigate the complexities of stock investing successfully.

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