Goldman Sachs has identified a potential boom in global stocks related to electrification, with an estimated $857.5 billion investment in Europe’s power transmission and distribution network. This surge in demand for power and data centers is expected to drive a 50% increase in electricity consumption in Europe over the next 10 years, reversing a slump that began in 2008.
According to CNBC Pro, Goldman Sachs analysts have named stocks with over 30% upside potential in response to this electrification boom. European companies are poised to benefit from this trend, with a significant increase in cash reserves compared to pre-pandemic levels. The dividend yield differential between Europe and the U.S. is at its narrowest, making European stocks more appealing to investors.
In other news, the stock market surged on Thursday ahead of the April jobs report, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posting gains. Additionally, the iShares MSCI India ETF hit an all-time high, signaling a continued rally for stocks tied to the country. Morgan Stanley strategist Ridham Desai predicts that India’s bull market could extend for several more years.
As the first-quarter earnings season nears its end, data shows that 77% of S&P 500 companies have exceeded earnings expectations, while 61% have surpassed revenue estimates. Communications technology is expected to see the most significant quarterly earnings growth, while the health-care and energy sectors are projected to experience declines. Overall, companies are on track to report 6.9% earnings growth year over year and 3.6% revenue growth.
With these developments in the global market, investors are keeping a close eye on opportunities for growth and potential returns in various sectors.
