Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets.
It is always a good sign when the Goldman Sachs team starts raising price targets on Buy-rated stocks. Typically, when a stock has been performing well and its target price is increased, it means that analysts are optimistic about what they see six to 12 months ahead. When we see significant price increases of 10% or more, it is time to share this with our readers. Here are four that appear to be outstanding ideas for growth and income investors.
Why we recommend Goldman Sachs stocks
Goldman Sachs is one of the acknowledged leaders in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investment spectrum and is likely to maintain this standard for years to come.
Altria
Altria Group Inc. (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other smokable and oral tobacco-related products. The company offers value investors a 6.21% dividend yield, a compelling entry point, and a generous dividend.
Altria provides cigarettes primarily under the Marlboro brand, as well as:
- Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
- Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
- on! Oral nicotine pouches
- e-vapor products under the NJOY ACE brand
It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.
Altria used to own over 10% of Anheuser-Busch InBev S.A. (NYSE: BUD), the world’s largest brewer. In March of 2024, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.
Goldman Sachs has increased its price target to $72 from $65.
Amphenol
This off-the-radar technology play is one of the largest companies in its industry, and it offers a modest 0.53% dividend. Amphenol Corp. (NYSE: APH) is a designer, manufacturer, and marketer of electrical, electronic, and fiber optic connectors and interconnect systems, antennas, sensors, and sensor-based products, and coaxial and high-speed specialty cables.
The company operates through three segments. The Harsh Environment Solutions segment designs, manufactures, and markets a range of ruggedized interconnect products and other products for use in these and additional markets:
- Industrial
- Defense
- Commercial aerospace
- Automotive
- Mobile networks
- Medical
Its Communications Solutions segment designs, manufactures, and markets a range of connector and interconnect systems for use in the information technology and data communications, mobile devices, industrial, mobile networks, broadband communications, automotive, commercial aerospace, and defense end markets.
Amphenol’s Interconnect and Sensor Systems segment designs, manufactures, and markets a range of sensors, sensor-based systems, connectors, and value-added interconnect systems.
The Goldman Sachs price target for the stock rose 14%, to $139 from $124.
Bank of New York Mellon
This is the oldest company in the Fortune 500, and it pays a solid dividend yield of 1.77%. The Bank of New York Mellon Corp. (NYSE: BK) is a global financial services company. Its business segment includes:
- Securities Services
- Market and Wealth Services
- Investment and Wealth Management
The Securities Services business segment comprises Asset Servicing and Issuer Services, which offer business solutions spanning the entire transaction life cycle to its global clients, including asset owners and asset managers.
The Market and Wealth Services business segment consists of three lines of business:
- Pershing
- Treasury Services
- Clearance and Collateral Management provides business services and technology solutions
Its Investment and Wealth Management business segment offers a diversified portfolio of investment strategies, both independently and through its global distribution network, to institutional and retail clients worldwide. It provides investment management, custody, wealth and estate planning, private banking services, and investment advisory services.
The $106 Goldman Sachs price target is now $120.
BorgWarner
This company is a long-time favorite at Goldman Sachs and pays a solid 1.0% dividend. BorgWarner Inc. (NYSE: BWA) is engaged in clean technology solutions for combustion, hybrid, and electric vehicles.
The company operates in four segments:
- The Turbos & Thermal Technologies’ technologies include turbochargers, e-boosters, e-turbos, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, and powertrain sensors, among others.
- The Drivetrain & Morse Systems segment’s products include control modules, friction and mechanical clutch products for automatic transmissions, torque-management products, and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems.
- The PowerDrive Systems segment’s products include power electronics such as inverters, onboard chargers, DC/DC converters, combination boxes, and others.
- The Battery & Charging Systems segment’s products include lithium-ion battery systems for electrified bus, truck, and off-highway applications, and DC fast chargers suitable for all types of electric vehicles.
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