BBWI - Goldman Sachs' 25 conviction list stocks to buy

2023-11-01 13:09:36 ET

Goldman Sachs published its November “U.S. conviction list.”

These are the 25 stocks the brokerage believes are the most differentiated fundamental “buy” ideas across the market.

The list, which was introduced on June 1, has two new additions in November, including Simon Property Group ( SPG ), which GS believes REITs are delivering pricing power and external growth; and Boeing Co. ( NYSE: BA ), which has “early innings of a long-cycle recovery with lots of free cash flow generation.”

GS summarized the stocks and their reasoning for putting them on their conviction list:

• Bath & Body Works ( BBWI ) – It has the possibility of a turnaround with new management.
• WW International ( WW ) – Its corporate transformation might bring “a steep runway for growth.”
• American International Group ( AIG ) – Possible improvement on returns in the long run.
• Jefferies Financial Group ( JEF ) – Long-term growth tailwinds and “pure-play exposure to a recovery in equity capital markets.”
• JP Morgan Chase & Co ( JPM ) – Best-in-class returns through the cycle.
• Blue Owl Capital ( OWL ) – It is riding the affluent private REIT wave.
• Merck & Co. ( MERK ) – Business growth through acquisition and innovation.
• Quanterix Corp. ( QTRX ) – Lots of innovation opportunities.
• Vertex Pharmaceuticals ( VRTX ) – An undervalued pipeline and a dominant franchise.
• JB Hunt Transport Services ( JBHT ) – A post-pandemic boom.
• PPG Industries ( PPG ) – It is also post-pandemic topline momentum.
• Republic Services ( RSG ) – Upside margin.
• Chevron Corporation ( CVX ) – They are leading capital returns and are supported by “a clear cash flow inflection in 2024.”
• First Solar Inc. ( FSLR ) – Benefiting from the Inflation Reduction Act.
• The Southern Company ( SO ) – Above average returns.
• Apple ( AAPL ) – Sustained success and a growing base.
• Amazon.com ( AMZN ) – Potential for another Amazon Web Services adoption cycle with an AI tailwind.
• Cintas Corp. ( CTAS ) – An organic growth compounder
• Shift4 Payments Inc-Class A ( FOUR ) – Volume growth opportunities.
• Nvidia Corp ( NVDA ) – The AI gold rush.
• Okta Inc. ( OKTA ) – A leader in identify protection.
• TE Connectivity ( TEL ) – The EV gold rush with strong free cash flow.
• Warner Bros Discovery Inc. ( WBD ) –  Unique free cash flow growth for a media stock.

More on Boeing:

• Boeing Stock Fails To Take Off Despite Bullish Future
• The Boeing Company (BA) Q3 2023 Earnings Call Transcript
• The Boeing Company 2023 Q3 - Results - Earnings Call Presentation
• Boeing added to ‘Conviction Buy’ list at Goldman Sachs
• Boeing upgraded to Buy at Northcoast Research

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