Fears of contagion within the world monetary system and uncertainty over rates of interest have weighed on investor sentiment in latest weeks, however alternatives stay amid the market volatility, in accordance with Goldman Sachs . “The macro backdrop stays unsure … That mentioned, we see scope for alpha alternatives with returns dispersion throughout sectors,” Goldman’s analysts, led by John Sawtell, wrote in a Mar. 28 observe. Inside the equities area, Goldman believes the present funding local weather lends itself towards European shares — regardless of an investor desire for U.S. equities. The financial institution prefers firms in worth sectors that pay dividends, in addition to choose defensive and progress shares available in the market. It additionally expects firms with stronger stability sheets to fare higher within the present surroundings. Out-of-consensus buys The financial institution recognized a raft of out-of-consensus inventory picks, the place every inventory is rated “purchase” by fewer than 50% of analysts masking them. Swedish mining tools producer Epiroc makes the listing, given the financial institution’s bullish long-term outlook for mining spending and the corporate’s “best-in-class” margins and returns. The financial institution additionally likes Spanish telecommunications agency Telefonica for its “enhancing” income progress prospects and “higher” profitability. Deutsche Financial institution makes Goldman’s listing too. Shares within the beleaguered financial institution have fallen 22% over the previous month amid fears that it may very well be the following Credit score Suisse , though analysts have been fast to level out that its monetary place appears to be like robust . The inventory has since pared some losses, however stays buy-rated by simply 48% of analysts masking it. Goldman provides Deutsche Financial institution potential upside of 114%. Worth buys with earnings upside Goldman additionally screened for buy-rated shares which might be buying and selling at enticing valuations relative to their very own historical past and the market, and the place the financial institution’s analysts see upside dangers to consensus earnings estimates. Oil main BP is one such inventory. Goldman believes BP is “on the cusp” of delivering one of many trade’s strongest pipelines of recent oil and gasoline tasks, in addition to benefiting from constructive momentum in gasoline buying and selling. This could assist a double-digit free money stream yield in 2023, the financial institution added. Shell and Repsol are among the many different vitality names on make the listing, whereas Mercedes , Porsche and BMW are the one automakers that turned up on the display. UBS , which not too long ago swooped in with a rescue deal for embattled Credit score Suisse, can be on Goldman’s display, with potential upside of 104%. The financial institution gave British telecommunications agency BT Group potential upside of 101%. — CNBC’s Michael Bloom contributed to reporting