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 and is likely to do so for years to come. 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.
At 24/7 Wall St., we have followed the firm’s research for 15 years to bring our readers top stock ideas. One of our favorite avenues is the firm’s Conviction List of top picks, which is reviewed and often updated monthly.
The Goldman Sachs Conviction List is a curated selection of stocks that the firm’s research team believes are highly likely to outperform the market. It’s a tool for investors to identify stocks with strong growth potential and is frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks where Goldman Sachs analysts have the “highest level of conviction” for outperformance. While we covered the latest edition in early February, we were interested in identifying which stocks have been on the Conviction List the longest. Five top dividend-paying companies have been longevity leaders, and, of course, all are rated Buy by Goldman Sachs.
Why do we cover Goldman Sachs stocks?
Goldman Sachs maintains its status as Wall Street’s premier firm through its undisputed leadership across virtually every major category. Over the 15 years we have covered the firm, it has remained the go-to bank for almost every financial need.
Bank of America
This quality financial giant remains an exceptional long-term holding with a solid 2.06% dividend yield. Bank of America Corp. (NYSE: BAC) is a bank holding and financial holding company that reported impressive Q4 results.
Its segments include:
- Consumer Banking
- Global Wealth & Investment Management (GWIM)
- Global Banking
- Global Markets
Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.
Two businesses comprise the GWIM segment. Merrill Wealth Management offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products. Bank of America Private Bank provides comprehensive wealth management solutions.
The Global Banking segment offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.
The Global Markets segment offers sales and trading, as well as research, to institutional clients across fixed income, credit, currency, commodity, and equity markets.
Goldman Sachs has a $67 target price, and the shares have been on the Conviction List for a leading 362 days.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a multinational American corporation specializing in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and yielding 2.10%, this diversified healthcare giant is a strong buy at current prices.
Johnson & Johnson is among the most conservative of the major pharmaceutical companies, with a diverse product portfolio and a familiar, solid brand. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is on products related to human health and well-being. It operates through two segments.
The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy platform for treating coronary artery disease and peripheral artery disease.
The Goldman Sachs target price for the shares, which have been on the list for 275 days, is $250.
Huntington Ingalls Industries
This stock has been on fire, up almost 24% in January, while paying a solid 1.33% dividend. Huntington Ingalls Industries Inc. (NYSE: HII) designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments:
- Ingalls
- Newport News
- Mission Technologies
The company designs and constructs non-nuclear ships, including amphibious assault ships, surface combatants, and national security cutters, for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling, overhaul, and inactivation services for nuclear-powered aircraft carriers.
In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes.
Huntington Ingalls also provides:
- C5ISR systems and operations
- Application of artificial intelligence and machine learning to battlefield decisions
- Defensive and offensive cyberspace strategies and electronic warfare
- Uncrewed autonomous systems
- Live, virtual, and constructive solutions
- Platform modernization
- Critical nuclear operations
The Goldman Sachs price target for the stock is $425, and the shares have been on the Conviction List for 214 days.
Duke Energy
This American electric power and natural gas holding company is headquartered in Charlotte, North Carolina. It is located in a growing part of the country and pays a hefty 3.37% dividend. Duke Energy Corp. (NYSE: DUK) and its subsidiaries operate as energy companies in the United States.
It operates through two segments. The Electric Utilities and Infrastructure (EU&I) segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest. To develop electricity, Duke Energy uses the following:
- Coal
- Hydroelectric
- Natural gas
- Oil
- Solar and wind sources
- Renewables
- Nuclear fuel
This segment also sells electricity to municipalities, electric cooperative utilities, and load-serving entities.
The Gas Utilities and Infrastructure (GU&I) segment distributes natural gas to
- Residential
- Commercial
- Industrial
- Power generation natural gas customers
The segment also invests in pipeline transmission, renewable natural gas, and natural gas storage projects.
Goldman Sachs has a $141 price target. Duke is tied for third at 214 days on the list.
Kontoor Brands
While somewhat off the radar, this company has tremendous upside, well-known brands, and pays a reasonable 3.09% dividend. Kontoor Brands Inc. (NYSE: KTB) is a global lifestyle apparel company that designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories. Its lifestyle, outdoor, and workwear brands include Wrangler, Lee, and Helly Hansen.
The Wrangler brand offers multiple sub-brands, collections, and product lines within the Wrangler brand to target specific consumer demographics and consumer end-users, including:
- 20X
- Aura from the Women at Wrangler
- Cowboy Cut
- Premium Patch
- Riggs Workwear
- Rock 47
- Rustler
- Wrangler Retro
- Wrangler Rugged Wear
- Wrangler All Terrain Gear
The Lee brand offers denim, apparel, footwear, and accessories for adults and children via multiple sub-brands, collections, and product lines, including:
- Lee101
- Riders
- Storm Rider
- Lee MVP
- Lee X
The Helly Hansen brand is an outdoor and workwear brand. Sub-brands include Helly Hansen Sport and Helly Hansen Workwear.
The Goldman Sachs price target is $84. Kontoor Brands has also been on the list for 214 days.
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