5 Goldman Sachs Conviction List Stocks Have Gigantic Implied Upside
This company may be somewhat off the radar for investors, but it is well liked across Wall Street. DXC Technology Co. (NYSE: DXC) is the world’s second-largest pure-play information technology (IT) services firm, behind only Accenture, and it generated around $25 billion in annual revenues.
The company has more than 170,000 employees (with an offshore mix of around 50%) and services around 6,000 clients in a wide range of verticals, and it has a presence in over 70 countries, with the Americas representing around 50% of total revenues.
DXC Technology shareholders are paid a small 1.14% dividend. The $106 Goldman Sachs price target is well above the $85.44 consensus of analysts. The shares closed trading on Tuesday at $66.39, and hitting the Goldman Sachs target would be a 60% gain.
This leading energy company shows up well on many Wall Street screens. EOG Resources Inc. (NYSE: EOG) is one of the largest independent exploration and production companies operating in the United States, Canada, Trinidad, the United Kingdom and China.
The company has a big well in Loving County in the Delaware Basin. Top analysts say the well ranks as one of the best they have ever seen in the basin, and it could easily impact other companies drilling in the region. EOG’s average dollar gross per well on a yearly basis ranks third among all operators.
Shareholders of EOG are paid a small 0.95% dividend. Goldman Sachs has a price target of $128. The posted consensus price target $120, and the stock closed trading most recently at $92.88 a share. Matching the target price would be a 45% gain for investors.
This retail idea offers some serious total return upside potential. Tapestry Inc. (NYSE: TPR) is a leading specialty retailer positioned in an appealing segment of the market (affordable luxury). Tapestry is comprised of the Coach, Kate Spade and Stuart Weitzman brands and is best known for accessories, especially handbags.
The company’s products are primarily sold through retail stores, outlet stores and online. The brands have a strong presence in select department stores and specialty retailer locations.
Tapestry shareholders are paid a very pleasant 4.10% dividend. Goldman Sachs has set its price target at $49. That compares to the consensus target of $43.33 and to the most recent close at $32.93 per share. Here too, reaching the target would represent a 50% gain.
Shares of these five top companies across different sectors offer tremendous upside to the Goldman Sachs price objective. While there is no guarantee they get there, moving just halfway to the targets would be outsized gains for investors.