Goldman Sachs: These 3 Stocks Have Over 20% Upside Ahead

Stocks are hitting record highs right now. All three major indexes surged this week following Fed Chair Jerome Powell’s strong rate cut signals. The S&P 500 closed on Friday above 3,000 for the first time, while the Dow Jones Industrial Average also enjoyed its first close above 27,000 on Thursday. Meanwhile the Nasdaq Composite ended the week up 1% at 8,244. But even at these elevated levels, it’s still possible to find stocks with significant upside potential for the months ahead. Goldman Sachs analyst Heath Terry has a top-notch reputation when it comes to stock picking. As we can see from TipRanks, the five-star analyst is ranked 130 out of over 5,242 tracked analysts.And according to Terry, there are still stocks primed to outperform. Indeed, the following three stocks all have over 20% upside potential ahead. That’s based on the stock’s current share price vs the analyst's price target. Let’s take a closer look at what’s driving this bullish sentiment now: Stitch Fix Inc (SFIX)Normally analysts reiterate stock ratings- so when a stock is upgraded or downgraded, it’s worth taking note. On July 12 Terry upgraded online personal styling service SFIX from Hold to Buy. His $38 price target indicates upside potential of 37%. Shares soared 5% following Terry’s recommendation. "At StitchFix, we believe product innovation, operational efficiencies, and geographic expansion, combined with the increase in retail store closures (particularly in apparel) represent significant opportunities for further outperformance," stated the analyst. The company’s unique model involves delivering hand-selected clothing and accessories to customers for a deductible $20 styling fee. Terry believes the stock shows "compelling upside potential" especially as it expands into several key markets. These include plus-size, kids' and men's clothing- as well as making its UK debut in May this year. The Street has a cautiously optimistic Moderate Buy SFIX consensus. However, the $37 average analyst price target still suggests 34% upside potential lies ahead. This is based on all the ratings received by a stock over the last three months. View SFIX Price Target & Analyst Ratings Detail Netflix Inc (NFLX)Streaming giant Netflix is another top stock on Terry’s buy list. With a $460 price target, the analyst is forecasting 23% upside potential for shares. What’s more, Netflix also features on Goldman Sachs’ prized Conviction Buy List. The list comprises of stocks the firm expects to outperform based on either the size of the potential return or the likelihood of the return. "We continue to believe Netflix’s investment in content, technology and distribution will continue to drive subscriber growth well above consensus expectations both in the U.S. and internationally," Terry told investors earlier this year when he added the stock to the firm's Conviction list. He added that Netflix "represents one of the best risk/reward propositions in the Internet sector” with the market significantly underestimating Netflix’s increasingly ‘robust’ original content. More recently, the analyst met up with with Netflix CFO Spencer Neumann, who sees further opportunities for subscriber growth both geographically and in terms of content investment. Plus...