Goldman Sachs Analysts Boost Confidence: Spotlight on 5 Stocks Gaining Momentum

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Investing / Thursday, 23 November 2023 18:54

"Goldman Sachs' Bullish Picks: 5 Stocks to Watch This Holiday Season

As investors seek value heading into the holiday season, Goldman Sachs points to a lineup of stocks that have consistently delivered promising returns. CNBC Pro sifted through Wall Street research to spotlight these noteworthy picks:

TransDigm Group:

Analyst Noah Poponak touts the aerospace manufacturer, citing its robust performance, with shares soaring by 52% this year. Poponak underscores TransDigm's consistent cash flow, capital deployment, and margin upside. The recent earnings report fueled optimism, leading Goldman Sachs to raise its price target to $1,128 per share. Poponak views TransDigm as a 'core holding,' emphasizing long-term potential amid the ongoing aerospace recovery.

Willis Towers Watson:

Analyst Robert Cox notes the transformation underway for the global advisory and client solutions firm. With a strong third-quarter performance and turnaround initiatives gaining traction, Cox raises the price target to $284 per share. Despite skepticism in the market, he anticipates near-term catalysts for stock growth, pointing to investments in employees contributing to retention and new business.

Warner Brothers Discovery:

Despite ad headwinds, analyst Brett Feldman maintains a buy rating for the media and entertainment giant. Warner's solid earnings report and progress in its direct-to-consumer initiative signal momentum into 2024. Feldman lowered the price target to $15 per share but remains optimistic about the company's growth in EBITDA, substantial free cash flow, and balance sheet deleveraging.

Ross Stores:

Goldman Sachs issues a 'buy rating' for Ross Stores following a strong third-quarter beat and raised full-year guidance. Analysts are encouraged by traffic-led comp beats, robust margins, and the flow-through of outperformance to the full-year guide. With increased conviction in Ross Stores' market share potential, Goldman Sachs sees an attractive opportunity for continued gains.

Trex Company:

Goldman Sachs maintains a 'buy rating' for Trex Company, noting management's optimism for top-line gains in 2024. The company's forward-looking forecast supports expectations for robust free cash flow, allowing for strategic investments and shareholder returns. With the current valuation considered attractive, Goldman Sachs sees an opportune entry point for investors.

As the holiday season approaches, these Goldman Sachs-backed stocks present compelling opportunities for investors seeking value and consistent performance in a dynamic market landscape."

"In conclusion, Goldman Sachs' curated selection of stocks presents a promising array of investment opportunities for those navigating the markets during the holiday season. Each highlighted company, from aerospace stalwart TransDigm Group to global advisory firm Willis Towers Watson, and media giant Warner Brothers Discovery, carries its unique strengths and growth prospects.

The analysts' bullish outlook on Ross Stores and Trex Company further underscores their confidence in these stocks, emphasizing robust performances and optimistic future trajectories. As investors strategically position themselves for the year-end, these Goldman Sachs-backed picks serve as potential anchors for portfolios, showcasing resilience and consistency in a dynamic financial landscape.

The collective theme across these recommendations echoes Goldman Sachs' conviction in companies demonstrating sustained value, growth potential, and effective strategic initiatives. While market dynamics are ever-evolving, these stocks stand as beacons of stability and opportunity, inviting investors to consider them as integral components of a well-rounded investment strategy during this festive season."