Goldman Sachs has named eight global corporate stocks that will outperform this year and beat the broader market. In a new research report, the investment bank found that companies that transition from unprofitable to profitable during a market recovery typically outperform the broader market. According to Goldman, this phenomenon was observed in 2001 and 2008, with performance higher than 50% in each case. “[The research] assess the performance of companies during the period of the Tech Bubble and the GFC, and remember that companies that can successfully transition from unprofitable to profitable usually outperform,” said the team led by Jessica Binder Graham, head of European equity research for Goldman Sachs. Research, in a note to clients on February 28. Goldman Sachs also said that the shares of European companies undergoing this transition have shown signs of outperformance against the Stoxx 600 by 6. The table below highlights three buy-rated stocks where the net income is negative in 2021 and 2022, and Goldman analysts expect to be to be green this year and next. Those stocks include Finnish state-owned energy company Fortum, which has benefited from Europe’s energy crisis over the past two years. Pan-European classifieds operator Adevinta and Swiss solar engineering firm Meyer Burger are also expected to deliver profits this year. ially true in the early days of the stock market rebound and applied e not only for net income or earnings per share metric but also for free cash flow (FCF) metric, the bank said. The table below shows five buy-rated stocks whose FCF margins have been negative over the past two years but are forecast to turn positive in 2023 or 2024 by the bank’s analysts. Additionally, the stock is projected to increase its FCF margin over the same period. Chemical companies Lanxess and Clariant, Swiss pharmaceutical company Lonza, French utility company Engie and US-listed Swiss clothing retailer On Holding were all loss-makers and will now turn a profit, according to Goldman. However, Goldman warned that the bank is not convinced that the market has reached the bottom, and that the trend is only applicable in the scenario of market recovery. “While we cannot say that the market is behind, there are signs that this theme has been traded,” the analyst added. – CNBC’s Michael Bloom contributed to this report.