WYNN - Goldman screens companies with best and worst pricing power into earnings season

Goldman Sachs equity strategists stressed the importance of pricing power for companies given a four-decade high in inflation and rising commodities prices. "Pricing power will become increasingly important in the face of continued inflation and cost pressures," David Kostin, chief U.S. equity strategist, and team wrote in a note. "In order to assess the sustainability of margins, we will monitor the ability of firms to pass increased costs through to consumers." Goldman screened the Russell 1000 (NYSEARCA:IWB) for companies in each sector with the best and worst pricing power. These stocks have high and stable gross margins: Communication Services (XLC) Alphabet (GOOGL) (GOOG), average 5-year gross margin level 57% Cable One (CABO), 48% Consumer Discretionary (XLY) Tapestry (TPR), 69% PVH (PVH), 55% Lululemon (LULU), 54% O'Reilly Automotive (ORLY), 53% Travel and Leisures (TNL), 49% Skechers (SKX), 48% Nike (NKE), 44% Advance Auto Parts (AAP), 44% Harley-Davidson (HOG), 41% Burlington Stores

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Goldman screens companies with best and worst pricing power into earnings season