The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes have a high likelihood of outperforming the market. It is a tool for investors to identify stocks with strong growth potential, frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks in which Goldman Sachs analysts have the “highest level of conviction” for outperformance. The list has been known to focus on specific themes, such as artificial intelligence, consumer trends, and sustainability. The Conviction List offers investors a valuable perspective on the stock market, enabling them to identify potential investment opportunities.
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. We screen the firm’s Conviction List of top stock ideas every month, looking for new companies added to the list and checking which companies have been removed.
For October, the firm added four new stocks, three of which are outstanding total return ideas for growth and income investors. All four new additions have double-digit upside potential to the Goldman Sachs price targets.
Why we recommend Goldman Sachs stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Here are the four new stock additions to the Conviction List for October.
Abbott Laboratories
This healthcare giant presents an excellent investment opportunity for investors, with its 1.74% dividend. Abbott Laboratories Inc. (NYSE: ABT) is engaged in the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products.
The company operates through four segments:
- Established Pharmaceutical Products
- Diagnostic Products
- Nutritional Products
- Medical Devices
The Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products.
The Diagnostic Products segment is engaged in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, and alternate-care testing sites.
The Nutritional Products segment is involved in the worldwide sales of a broad line of adult and pediatric nutritional products.
The Medical Devices segment includes the worldwide sales of :
- Rhythm management
- Electrophysiology
- Heart failure
- Vascular
- Structural heart
- Neuromodulation
- Diabetes care products
Goldman Sachs has a $157 target price, which would be a 17% gain.
Air Products and Chemicals
While off the radar, this blue-chip giant pays a solid 2.63% dividend and has a giant 23% upside to the Goldman Sachs target price. Air Products and Chemicals Inc. (NYSE: APD) is an industrial gases company focused on serving energy, environmental, and emerging markets.
Its base business provides essential industrial gases, related equipment, and applications expertise to customers in dozens of industries, including:
- Chemicals
- Refining
- Metals
- Electronics
- Manufacturing
- Food
The company also develops, engineers, builds, owns, and operates clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. In addition, the company provides turbomachinery, membrane systems, and cryogenic containers globally.
Air Products and Chemicals has operations in approximately 50 countries.
Its industries include:
- Aerospace
- Analytical labs and research/science
- Automotive
- Beverages
- Bioenergy
- Biotechnology
- Cement and lime
- Chemicals
- Electronics
- Food, glass, and frit
- Hydrogen energy
- Medical
- Metals and materials processing
- Metals production
- Medical
The Goldman Sachs target price is $335.
Hershey
With Halloween right around the corner, this is an excellent idea for growth and income investors, with its solid 2.82% dividend. Hershey Co. (NYSE: HSY) is a snacks company.
The company’s segments include:
- North America Confectionery
- North America Salty Snacks
- International
The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada.
This includes its business in:
- Chocolate and non-chocolate confectionery
- Gum and refreshment products
- Protein bars
- Spreads
- Snack bites and mixes
- Pantry and food service lines
This segment also includes its retail operations.
The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat-free snacks, pretzels, and other snacks.
The company’s portfolio includes chocolate and confectionery brands such as:
- Hershey’s
- Reese’s
- Kisses
- Kit Kat
- Jolly Rancher
- Ice Breakers
- Shaq-a-licious alongside salty snacks
- SkinnyPop
- Dot’s Homestyle Pretzels
The Goldman Sachs target price for the stock is $222. That would be a big 19% gain for investors.
Madison Square Garden Entertainment
With world-renowned sporting and event arenas, this company is a great growth vehicle for investors. Madison Square Garden Entertainment Corp. (NYSE: MSGE) is a live entertainment company.
The company’s portfolio includes a collection of venues that showcase a range of sporting events, concerts, family shows, and special events:
- New York’s Madison Square Garden
- The Theater at Madison Square Garden
- Radio City Music Hall and Beacon Theatre
- The Chicago Theatre
In addition, the company features the original production, the Christmas Spectacular Starring the Radio City Rockettes.
The company also hosts two of the franchises in professional sports: the National Basketball Association’s Knicks and the National Hockey League’s Rangers.
Madison Square Garden Entertainment also promotes, produces, and/or presents a range of live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports, and wrestling. It conducts a significant portion of its operations at venues that it either owns or operates under long-term leases.
Goldman Sachs has a $52 target price for the shares, which would be a 15% gain.
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