On the heels of its record-breaking rally, the market dipped into the red. The S&P 500, the Dow Jones and Nasdaq all slipped yesterday following the release of a report stating that a trade deal might get pushed into 2020. This comes after China denounced a resolution from the U.S. Senate supporting human rights in Hong Kong.

“What we’re seeing in the market today is another reminder that tariffs reign supreme. You can have great results from two of the biggest retailers — Target and Lowe’s — but what seems to matter most of all is if headlines go south on trade,” JJ Kinahan, TD Ameritrade chief market strategist, commented.

Against this backdrop, the Federal Reserve published the minutes from its October meeting, demonstrating that interest rates will likely stay put unless economic conditions deteriorate substantially.

Given the current economic landscape, investors are searching for stocks poised to soar through 2020 and beyond. To get this done, we turned to the pros at Deutsche Bank, taking a closer look at three of the Wall Street giant's Buy-rated picks boasting huge upside potential. Deutsche houses some of the best-performing analysts on Wall Street, with it scoring the 8^th spot on TipRanks’ Top Performing Research Firms ranking. Let’s dig in.

TechnipFMC (FTI)

TechnipFMC provides its customers with subsea, onshore, offshore and surface technologies used for oil and gas production. While shares have struggled in the last few months, Deutsche Bank’s Christopher Snyder just gave the company a “top pick” designation.

Part of FTI’s strength lies with its ability to cut well costs for upstream providers through its unique approach to developing and installing subsea field architecture. This includes standardizing equipment, simplifying installations and employing new technologies. As a result, it saw a 40% drop in offshore breakevens compared to last cycle.

“By making more projects economically viable for their customer base, FTI has successfully created secular demand tailwinds for themselves, a win-win and the ultimate goal of any service provider,” Snyder wrote in a note to clients. He added that even though margins have been weighed down by excess supply across subsea manufacturing and installation, he predicts that 2019 will represent the “bottom in subsea margins for FTI” as subsea service and integrated projects make up a larger portion of revenue in the next few years.

Adding to the good news, since FTI introduced its integrated subsea model (iEPCI) in 2016 that brought all operations under one roof, iEPCI accounts for more than 50% of FTI’s inbound subsea orders. “We think the rapid adoption of digital solutions throughout the oil and gas value chain will drive increased integration across the OFS universe and no company is better positioned to take advantage of this shift than FTI,” Synder noted.

All of this prompted the analyst to initiate coverage with a Buy. Along with the rating, he attached a $33 price target, indicating 68% upside potential. (To watch Snyder’s track record, click here)

Similarly, the rest of the Street likes what it’s seeing. 5 Buy ratings and 1 Hold received in the last three months add up to a ‘Strong Buy’ analyst consensus. On top of this, its $31 average price target puts the upside potential at 60%. (See TechnipFMC stock analysis on TipRanks)

Baker Hughes (BKR)

Baker Hughes is an oil and gas technology company that offers solutions for energy and industrial customers across the world, with the majority stake of its shares having been previously held by General Electric. Based on its business segments that include long-cycle businesses (LNG), more stable and diversified end-markets, strong international exposure and a service portfolio focused on technology, Deutsche Bank sees plenty of gains in store.

While acknowledging the “choppy upstream backdrop,” Christopher Snyder, who also covers BKR, argues that the current LNG FID wave and its associated after-market service agreements will lend itself to strong margin expansion.

“We think the margin improvement story at BKR has been under-appreciated by the market with the company setting itself up for years up margin expansion, even under our relatively conservative near-term upstream spending outlook,” he explained.

Additionally, Snyder cites its digital solutions business as providing diversification with end-markets in the broader industrial and chemical industries. This is important as it gives BKR some stability in an otherwise volatile oil and gas market. The analyst also points out that the resurgence in both the international oilfield service and equipment markets should bode well for BKR.

As a result, Snyder started BKR as a Buy and set a $32 price target. This target conveys his confidence in BKR’s ability to climb 43% higher in the next twelve months. (To watch Snyder’s track record, click here)

Like Snyder, other Wall Street analysts take a bullish approach when it comes to BKR. As 9 Buys were assigned in the last three months compared to no Holds or Sells, the consensus is unanimous: BKR is a Strong Buy. At an average price target of $29, the potential twelve-month gain lands at 31%. (See Baker Hughes stock analysis on TipRanks)

Arlo Technologies (ARLO)

No one is doubting the fact that home automation company Arlo Technologies has had a rough going. We’re talking about a 72% fall year-to-date. However, Deutsche Bank analyst Jeffrey Rand believes that the drop presents investors with a unique buying opportunity.

The analyst recognizes that ARLO continues to face challenges both operationally and competitively but argues that this downside risk has already been factored into the share price. In his view, the company stands out based on its ahead-of-the-curve technology that is “supported by its market share leading position in the U.S. and the growing mix of subscription revenue should support margin expansion and a more stable revenue stream”.

Part of the optimism is due to the potential sale of its European commercial operations to Verisure for $50 million. Not to mention the deal includes a guarantee that Verisure will reach a minimum of $500 million in cumulative hardware purchases over the next five years and will purchase Arlo Smart subscriptions from Arlo for its users. “With about 3 million customers, Verisure meaningfully increases Arlo's future customer base and we believe that this model could open up future possibilities for Arlo to work closer with home security providers,” Rand noted.

Bearing this in mind, the analyst resumed coverage of ARLO with a bullish call and attached a $4 price target. This implies shares could surge 45% in the coming year. (To watch Rand’s track record, click here)

Looking at the consensus breakdown, it’s a mixed bag when it comes to ARLO. 1 Buy, 1 Hold and 1 Sell amount to a ‘Hold’ analyst consensus. However, its $4 average price target brings the upside potential to 45%. (See Arlo Technologies stock analysis on TipRanks)