Goldman loves these stocks but the rest of Wall Street does not
Goldman Sachs analysts have their eyes on several stocks that could outperform moving forward — even though most of Wall Street thinks otherwise. The firm screened for buy-rated stocks in its coverage universe, where its analysts are out of consensus and the majority of Wall Street analysts deem the names as either neutral or sell. After a volatile start to October trading, bullish investors could use these stocks as an opportunity to buck the broader market’s recent slowdown. For each of the names, Goldman’s estimates for 2025 earnings per share are at least 2% above the consensus. These stocks below have at least 10% upside to Goldman’s price targets. They are names that are slightly out of favor with the Street, as less than 50% of analysts have a buy rating on them. “These names appear underappreciated by the market and could generate alpha for investors with a contrarian view,” analyst Deep Mehta said in a Sept. 26 note. Take a look at some of the names below, with pricing data current as of Sept. 25: Online travel agency operator Tripadvisor made the cut. The stock only has buy ratings from 20% of Wall Street analysts, according to the note. Shares are down nearly 32% year to date. Analysts have been downbeat on the stock, with Cantor Fitzgerald beginning coverage of the name last month and rating it underweight. “The company is rolling out new experiences and products at a healthy pace but we believe the headwinds in the core hotel meta business are too significant,” the firm said. On May 8 , the stock plunged nearly 29% after the company threw cold water on hopes for a sale. TripAdvisor said that a special committee had determined there was no transaction with a third party that would be in the best interests of the company and its stockholders. Shake Shack is also on Goldman’s list. The firm’s 2025 estimate for earnings before interest, taxes, depreciation and amortization is 5% above the Street’s consensus estimates. Goldman analyst Christine Cho rates the stock a buy. Shake Shack is a brand that has a meaningful total addressable market and unit growth potential, she said in a Sept. 23 note to clients. Cho also noted that the company has “relevant concepts with below-peer average exposure to lower income consumers that could increase guest frequency/attractive new guests.” Shake Shack’s stock price has soared 48% this year. Conagra Brands is another name Goldman loves more than the average analyst. The firm added Conagra in its upgraded “conviction list” last month, saying the company’s frozen food and snack portfolio fits well with current consumption trends. Conagra shares lost 9.1% last week after the packaged food company posted quarterly earnings that came out significantly below analysts’ expectations . Conagra did reaffirm its fiscal 2025 guidance, however. The stock is now up about 3% for the year.
Source link
