Even with a brief drop this week, the markets are showing strength this year, with the S&P 500 climbing 8%. However, there’s a big question on investors’ minds: Can this momentum keep up?
David Kostin, Goldman’s chief US equity strategist, has given four scenarios for investor consideration: “(1) in a ‘catch up,’ the S&P 500 would end the year at 5800 (+12% from today), (2) in a ‘catch-down,’ the S&P 500 would fall to 4500 (-14%), (3) continued mega-cap exceptionalism would lift the index to 6000 (+15%), and (4) recession fears would push the index down to 4500 (-14%).”
It remains to be seen which scenario will play out. Nonetheless, Goldman Sachs analyst Richard Law has made two specific stock recommendations, foreseeing substantial upside potential of over 120%. Law’s bullish outlook is shared by others in the market; according to the TipRanks database, both stocks carry a Strong Buy consensus rating from analysts. Let’s take a closer look.
Olema Pharmaceuticals (OLMA)
The first Goldman pick we’ll look at is Olema Pharma, a medical research firm working at the clinical stage with a focus on the discovery, development, and commercialization of new therapies specifically targeted at women’s cancers. Olema has a research pipeline built around a leading drug candidate, OP-1250 (also called palazestrant), which is under investigation in six separate research tracks. Of these, five are at the clinical trial stage.
Those five clinical tracks involve testing OP-1250 as a monotherapy and as a combo therapy in conjunction with several other anti-cancer drugs in the treatment of ER+/HER2 metastatic breast cancer. The most advanced track, studying the drug as a monotherapy, is entirely under Olema’s direction; several of the other tracks involve partnership programs with larger drug companies.
The company’s most advanced is the Phase 3 pivotal monotherapy trial of OP-1250. This study was initiated during 4Q23, and top-line results are expected during 2026.
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In the meantime, there are several milestones expected for this year. In…
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