The Wall Street Bull (The Charging Bull) is seen during the Covid-19 pandemic in Lower Manhattan, New York City, United States on May 26, 2020.
Tayfun Coskun | Anadolu Agency | Getty Images
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Goldman Sachs expects U.S. corporate earnings to rebound strongly after this quarter’s low in 2021, and the company has developed several strategies to help clients take advantage of the big comeback.
With the coronavirus pandemic lowering costs, Goldman is confident that companies navigating the unprecedented turmoil can see a swift recovery with the launch of a vaccine next year.
“A rebound in revenue, cost controls and weak wages will lead to a recovery in profit margins that is above consensus in 2021,” said Ben Snider, Goldman’s equity strategist, in a note. “Even without cost control, a vaccine-driven economic and revenue recovery should result in an even stronger recovery in earnings.”