Goldman Sachs Highlights Promising Stocks for Investors
This week, Goldman Sachs has identified several stocks that it believes have strong potential for growth. According to the investment bank, these companies show resilience and it’s suggested that investors act quickly to purchase them. CNBC Pro examined Goldman Sachs’ findings and included five stocks recommended for buying: Apple, Mastec, BJ’s, Valvoline, and Kontoor Brands.
Mastec, which focuses on infrastructure and renewable energy, is a new addition to Goldman’s buy list. Analyst ATI Modak upgraded the company from a neutral stance, citing the positive influence of their Multiplay Plus Catalyst. Mastec is expected to gain from increased spending in utilities, and Modak anticipates that forecasts for the company will likely be revised upwards as construction for oil and gas pipelines accelerates. As a result, Goldman has increased its price target for Mastec from $156 to $195 per share. They noted that considering the recent announcements of new long-distance pipelines, and Mastec’s leading position in pipeline construction, the pipeline sector could see annual revenues of around 2.4 to 2.5 billion, marking a 19% increase this year.
Valvoline has also been upgraded from neutral to buy by analysts, led by Mark Jordan. Goldman describes the company as a leader in the “Do-it-for-Me” oil change market, emphasizing its advantageous position amidst the current economic landscape. Jordan points out that Valvoline has limited exposure to rising tariffs. “With just a 6% market share currently, strong brand recognition, and a solid operational plan, we think there are significant long-term opportunities for growth,” he mentions. He also noted the potential for franchise development, saying, “The future expansion opportunities seem promising, especially for scale operators with recognized brands like Valvoline.” In fact, the stock has already seen a 2% increase this month.
Kontoor Brands, the parent company of Wrangler and Lee Jeans, has recently returned to the spotlight. Goldman described these stocks as too appealing to overlook. Analyst Brooke Roach observed that the momentum for the Wrangler brand is robust, boosted by strong trends in Western fashion. She also noted that the performance of Lee Jeans is beginning to stabilize. Furthermore, Goldman is optimistic about Kontoor’s acquisition of Helly Hansen. Roach pointed out that the outdoor clothing brand has significant growth potential. Despite a 27% drop in Kontoor’s stock this year, Goldman believes there is substantial room for recovery. “Given the solid underlying trends, especially for Wrangler, and the integration of the Helly Hansen brand, we see a favorable risk/reward scenario for Kontoor, especially considering the current customs environment,” she stated.
Goldman Sachs maintains a buy rating for Apple, noting that while the market might be focusing on slower product revenue growth, the strength and visibility of Apple’s ecosystem revenue are quite significant.
As for Mastec, the recommendation emphasizes pipeline-related estimate revisions, especially with announcements regarding midstream oil and gas projects. Valvoline’s noted market share capabilities present future profit prospects, with analysts reiterating their positive outlook. The analysis also highlights Kontoor’s favorable standing influenced by its core business trends, particularly for Wrangler.
Lastly, BJ’s remains a solid buy, with an emphasis on its continued revenue growth linked to increased customer traffic, unit growth in groceries, and enhanced customer engagement.
