Stocks Are Likely to Rip Higher from Here, Says Goldman Sachs (GS)

With U.S. President Donald Trump issuing an indefinite ceasefire in Iran, the stock market is likely to rip significantly higher in coming months, says Wall Street investment bank Goldman Sachs (GS).

Claim 30% Off TipRanks

In a note to clients, Goldman Sachs says that the stock market rally from the Iran war lows is only just beginning. Analyst Ben Snider writes that the benchmark S&P 500 index is likely to rise 7% from current levels to end the year at 7,600.

“The US equity market should continue to make new highs in coming months on the back of continued earnings growth,” writes Snider. The analyst adds that the S&P 500 has rallied 12% since March 30 of this year, its biggest rise since April 2020.

Strong Corporate Earnings

Snider stresses that a big catalyst for markets throughout the rest of 2026 is likely to be corporate earnings, noting that the first-quarter prints now coming in have been strong and largely ahead of consensus expectations on Wall Street.

The Goldman Sachs strategist says investors should target growth stocks that are currently trading at lower valuations. He recommends stocks such as Nvidia (NVDA), Amazon (AMZN), Meta Platforms (META), and Micron Technology (MU).

Is AMZN Stock a Buy?

Let’s look at one of the stocks Goldman Sachs recommends. Amazon’s stock has a consensus Strong Buy rating among 46 Wall Street analysts. That rating is based on 43 Buy and three Hold recommendations issued in the last three months. The average AMZN price target of $284.09 implies 14.91% upside from current levels.