Goldman’s top stock selections for August

Goldman Sachs Updates Stock Picks as August Begins

As August kicks off, Goldman Sachs has added commercial insurance stocks to its list of top stock picks. Despite a dip on Friday, many stocks are approaching their all-time highs, following President Donald Trump’s significant recovery announcement in April related to new global tariffs. Recent factors like business revenue growth, solid economic indicators, and whispers about potential interest rate cuts from the Federal Reserve have all contributed to this upward momentum.

Each month, Goldman Sachs refreshes its “Director’s Cut” version of the US conviction list, showcasing its preferred US stock ideas. Included in this month’s list are several stocks highlighted in the accompanying table, with prices reflecting data as of July 31st. One notable addition is AON, a reinsurance and health benefits firm, which has seen a decrease of about 2% this year. Goldman’s target price of $430 suggests AON’s shares could increase by 21%. The bank notes, “Talent + Synergies + M&A/Capital Markets Recovery = Lots of free cash flow,” suggesting AON is likely to experience stronger organic growth and free cash flow than current consensus expectations into 2026, aided by its acquisition synergies from National Financial Partners.

Pinterest is also featured among Goldman’s top picks. The stock has surged 29% this year, and the bank’s target indicates it could climb another 11%. Remarkably, over 81% of analysts covering Pinterest recommend buying. Guggenheim analyst Michael Morris reaffirmed his buy rating, boosting Pinterest’s price target from $39 to $44, which outpaces the stock’s closing price on Thursday by 14%. Morris expressed confidence in Pinterest’s performance driven by AI investments and strategic partnerships, especially as the company prepares for its 2Q revenue reports.

Additionally, Duke Energy made it onto Goldman’s list as well. The Charlotte-based utility could experience an over 14% gain this year, potentially exceeding the S&P 500’s performance and increasing another 9% going forward, according to Goldman. Carly Davenport, a Goldman analyst, upgraded Duke from Neutral to Buy in June, highlighting how the company’s stock is lagging compared to defensive peers while making essential regulatory strides. She pointed out that Duke’s outlook is improving in terms of load growth and capital investments, viewing its current valuation as compelling, especially compared to other premium utilities.