Goldman Sachs has named eight global stocks of companies that will be profitable this year and beat the broader market. In a new research report, the investment banker found that companies that transition from losses to profits during a market recovery often outperform the broader market. According to Goldman, this phenomenon was observed in 2001 and 2008, with over 50% performance in each case. “[The research] evaluates the performance of companies during the Tech Bubble and GFC, noting that companies that can successfully transition from unprofitable to profitable often outperform,” the research team said. said by Jessica Binder Graham, co-head of European equity research at Goldman Sachs Research, in a note to clients on Feb. 28. Goldman Sachs also said the companies’ stocks Europe undergoing this transition has shown signs of a 6% gain over the Stoxx 600, both negative in 2021 and 2022, and what Goldman analysts predict will turn green for the year. Stocks include Finnish state energy company Fortum, whose earnings have been hit hard by the European energy crisis over the past two years. Europe-wide classifieds Adevinta and Swiss solar engineering firm Meyer Burger are also expected to turn a profit this year. says this was all true during the early days of the stock market rally and applies not only to net earnings or earnings per share, but also to the free cash flow (FCF) index. The table below shows five buy-rated stocks that have had negative FCF margins over the past two years but are forecast by the bank’s analysts to become positive in 2023 or 2024. In addition, these stocks are projected to become positive. reported to improve FCF margin over the same period. According to Goldman, chemicals companies Lanxess and Clariant, Swiss pharmaceutical company Lonza, French utility company Engie and US-listed Swiss clothing retailer On Holding are the losers and are currently listed as losers. hope to be profitable. However, Goldman warned that the bank is unlikely to have bottomed out and that this trend only applies in the event of a market recovery. “While we cannot say with certainty that a market bottom is behind us, there are signs that this topic has been traded,” the analysts added. — Michael Bloom of CNBC contributed to this report.