Investing

Huge Sell-Off Could Lead to Big Gains: 5 Goldman Sachs Stocks to Buy Now

General Motors

This venerable car company could benefit from an improving economy and the return to work. General Motors Co. (NYSE: GM) is the world’s largest automaker, with annual volume of almost 10 million units. The company reports its operations in four regions, North America, Europe, South America, and International. The company now relies on only four core brands in its key North American segment (Chevrolet, GMC, Buick and Cadillac).

GM sells cars, crossovers and trucks to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. In addition, it offers connected safety, security and mobility solutions and information technology services. The company, through its subsidiary, General Motors Financial, provides automotive financing services.

The Goldman Sachs analysts just upgraded the venerable auto manufacturer’s stock to a Buy rating on Friday, and they raised the price target to $36 from $25. The posted consensus target is $34.76, and General Motors stock ended last week at $27.96 a share, after almost 6% gain on Friday.

Marathon Petroleum

This is a solid way for more conservative accounts to play the energy sector. Marathon Petroleum Corp. (NYSE: MPC) is currently one of the largest independent petroleum refining and marketing companies in the United States. It operates approximately 2,750 retail sites under the Marathon and Speedway brands. In addition, the company operates a logistics network of pipelines, barges, trucks and terminals that store and transport crude and products.

Despite a plan to spin-off Speedway, the company announced in late February a plan to invest $550 million in the chain. The investment will focus primarily on converting convenience stores the company added to its portfolio through several acquisitions over the past two years, notably, the strategic combination with San Antonio-based Andeavor in the fall of 2018, to Speedway’s branding and systems.

Note that the robust 6.57% dividend yield could be trimmed. The Goldman Sachs price target was lifted from $39 to $44, which is still lower than the $46.43 consensus target. Marathon Petroleum stock closed on Friday at $36.62 per share.

Microchip Technology

Shares of this huge Internet of Things benefactor and have been very strong recently. Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, mixed-signal, analog and flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.

The company acquired Microsemi in June of 2018, and SunTrust believes that purchase and earlier acquisitions afford Microchip Technology ongoing mergers and acquisitions linked upside potential from cross-selling (to boost sales) and manufacturing synergies (to reduce costs).

Investors receive a 1.67% dividend. The Goldman Sachs price target was raised to $121 from $103. The posted consensus price objective is $114.69, and Microchip Technology stock was last seen changing hands at $99.63 a share.

These five top stocks are Buy rated and also saw their price targets raised at Goldman Sachs. We could see more volatility come into the market, as the CBOE Volatility Index (VIX) moved sharply higher last week during the massive risk-off day, so buying partial positions to make sure the coast is clear as the quarter runs out could make the most sense.