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 36th 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 company’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 updated monthly. The August addition may be a perfectly timed idea, given that interest rates are heading higher. Plus, Goldman Sachs has two additional financial services names on the Conviction List that look like outstanding ideas for the rest of the year and beyond.
Why We Recommend Goldman Sachs Stocks
Goldman Sachs Research is widely regarded as among the best in the industry for its exceptional breadth and depth, covering over 3,000 securities, more than 45 economies, and every major market, with cutting-edge, data-driven insights. The firm’s team produces thousands of proprietary forecasts, models, and unique indicators that help clients anticipate market shifts. At the same time, its original thought leadership on macroeconomics, industries, and global trends draws from a global network of top-tier analysts and economists. This combination of rigorous fundamental analysis, innovative proprietary tools, and a long-standing reputation for high-quality output—often recognized in industry awards and surveys—consistently positions Goldman Sachs as a trusted resource for institutional investors and sophisticated market participants.
AON
This is the newest addition to the Goldman Sachs Conviction List for August, and it pays a 0.83% dividend. AON (NYSE:AON | AON Price Prediction) is an Ireland-based professional services company providing a range of risk capital and human capital solutions. Goldman Sachs analyst Rob Cox has this to say about the stock.
AON is poised to deliver stronger-than-consensus 2026 organic growth and free cash flow (9% above Visible Alpha consensus for 2026 and 2027), supported by talent investments (more brokers), NFP acquisition synergies (acquired in 2024), and an eventual capital markets recovery, combined with an attractive valuation.
The company operates through two segments. The Risk Capital segment supports clients through its commercial risk and reinsurance solution lines. Its commercial risk includes insurance and specialty brokerage, global risk consulting, captives management, and affinity programs. Its reinsurance includes treaty reinsurance, facultative reinsurance, strategy and technology group, and capital markets.
The Human Capital segment supports clients through its health and wealth solution lines. Health includes consulting and brokerage, consumer benefits solutions, and talent advisory services. Wealth includes retirement consulting, pension administration, and investment consulting. Its commercial risk solutions include insurance and specialty brokerage, global risk consulting, captives management, and others.
The Goldman Sachs target price is $430, representing a 21% gain for the shares.
Bank of America
This quality financial giant remains an exceptional long-term holding with a solid 1.81% dividend yield. Bank of America (NYSE:BAC) is a bank holding company that reported impressive Q2 results. Berkshire Hathaway owns 513,624,165 shares, which is 7.9% of the portfolio and 7.2% of the float. Berkshire did lower its Bank of America position in Q1 2026, but only modestly. According to the Q1 2026 13F filing, it was reduced by just 0.71%, a tiny cut compared to other positions.
Its segments include:
- Consumer Banking offers a range of credit, banking, and investment products and services to consumers and small businesses.
- Global Wealth & Investment Management comprises two businesses:
- Merrill Wealth Management, which offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products
- Bank of America Private Bank, which provides comprehensive wealth management solutions
- Global Banking offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services.
- Global Markets offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets.
Goldman Sachs has a Buy rating, and its $56 target price would be an 18% gain.
Capital One Financial
The well-known banking giant has significant upside potential to the Goldman Sachs target and pays a 1.43% dividend. Capital One Financial (NYSE: COF) is a diversified financial services holding company with banking and non-banking subsidiaries. The company offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients through various channels. It operates through three segments.
The Credit Card segment comprises domestic consumer and small business card lending, as well as international card businesses in the United Kingdom and Canada.
The Consumer Banking segment includes deposit gathering and lending activities for consumers and small businesses, as well as national auto lending.
The Commercial Banking segment provides treasury management services to commercial real estate and commercial and industrial customers. Its principal operating subsidiary is Capital One, National Association, which offers banking products and financial services.
The Goldman Sachs target price is $276, representing a 28% increase from current levels.
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