With the fourth quarter almost half over, and most of the third-quarter earnings reports long since posted, most on Wall Street are reasonably satisfied with the results. While many investors remain very nervous, especially given the big rally this week, and the election results that remain incomplete, the overall take is one of slow but steady going forward, given the incredible turmoil in the equity markets and the economy due to the COVID-19.

In a series of new reports, Goldman Sachs changes the price targets on some companies that delivered the goods in a big way. Given the increases in some of the targets, the stocks still have some very solid upside potential. Here we spotlight four stocks rated Buy at the firm, three with raised price targets higher and one that was lowered. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
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ArcBest

This off-the-radar idea posted solid results and the analysts are very positive. ArcBest Corp. (NASDAQ: ARCB) provides freight transportation services and integrated logistics solutions worldwide and to 98.6% of all American cities. It operates through three segments.

The Asset-Based segment transports general commodities, such as food, textiles, apparel, furniture, appliances, chemicals, non-bulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery and miscellaneous manufactured products through less-than-truckload services.

ArcBest also offers motor carrier freight transportation services to customers in Mexico through arrangements with trucking companies. The ArcBest segment provides expedite freight transportation services to commercial and government customers; premium logistics services, such as deployment of specialized equipment to meet linehaul requirements; and international freight transportation with air, ocean and ground services.

The company also offers third-party transportation brokerage services by sourcing various capacity solutions, including dry van over the road and intermodal, temperature-controlled and refrigerated, flatbed, intermodal or container shipping, and specialized equipment. The company reported solid results and trends for the most recent quarter.

The Goldman Sachs team has raised the price target to $50 from $44. That compares with a $37.89 consensus target across Wall Street, as well as Thursday’s closing price of $36.63 a share, up a stellar 6.95% on the day.

GW Pharmaceuticals

Investors looking to add a health care position should consider this top company. GW Pharmaceuticals PLC (NASDAQ: GWPH) is a biopharmaceutical company focused on developing cannabinoid-based drug therapies in a broad range of diseases.

The company collects sales-based royalties from commercial partners for sales of its drug Nabiximols (approved outside the United States for multiple sclerosis spasticity). Its lead asset, Epidiolex, is approved for the treatment of pediatric epilepsies. Its earlier stage pipeline consists of CBDV (for pediatric and adult epilepsies), Nabiximols and other compounds for various illnesses.

Epidiolex third-quarter sales of $132.6 million (a 13% gain quarter over quarter) were well above most Wall Street estimates. The company has provided analysts more color on its penetrations into key epilepsy markets that indicate ample room for growth. The first Phase 3 multiple sclerosis spasticity study has begun, with readout on track in 2021.

Goldman Sachs lowered its price target from $271 to a still stunning $234, well above the posted consensus target of $186.19. With GW Pharmaceuticals stock closing Thursday at $110.15 per share, the upside to the Goldman Sachs target is over 100%.
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Gates Industrial

Given the recent rotation to industrials, this is a good stock for growth investors to consider. Gates Industrial Corp. PLC (NYSE: GTES) is a holding company that engages in the manufacture of engineered power transmission and fluid solutions. It operates through the following segments.

The Power Transmission segment includes elastomer drive belts and related components used to efficiently transfer motion in a broad range of applications. The Fluid Power segment is comprised of hoses, tubing and fittings designed to convey hydraulic fluid at high-pressures in both mobile and stationary applications, as well as high-pressure and fluid transfer hoses used to convey various fluids.

The $14.50 Goldman Sachs price target was raised to $16, while the consensus target was last seen at $14.31 The last trade Thursday hit the tape at $12.24 a share, after a 3% gain on the day.

Teradyne

This lesser-known semiconductor capital equipment leader also could have solid upside potential was upgraded to Buy from Neutral at Goldman Sachs. Teradyne Inc. (NYSE: TER) is a supplier of automation equipment for test and industrial applications.

The company designs automatic test systems used to test semiconductors, wireless products, data storage and electronic systems in the consumer, wireless, auto, industrial, computing, communications and aerospace/defense markets. Industrial automation products include collaborative robots used by global manufacturing and light industrial customers to improve manufacturing efficiency and reduce costs.

Many analysts on Wall Street point to the company as a somewhat ancillary play to the sector and have often cited the growing robotics silo as more of a reason to own the shares than the fundamentals related to wafer fab equipment. The company also has consistently bought back its shares.

The Goldman Sachs price target was lifted to $107 from $90. The consensus target is $98.50, and Teradyne stock jumped almost 4% on Thursday to end at $99.32 per share.

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These four top companies are executing well and their shares look to have very solid upside to the latest Goldman Sachs price targets. These are stocks that are better suited for investors with a somewhat higher risk tolerance, as they could be a touch more volatile given the solid runs they have had. That noted, they offer solid balance sheets and dependable potential for 2021 growth.

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