Goldman Sachs analysts have recommended investors to buy the dip in several stocks, highlighting Alibaba Group, Ulta Beauty, Burlington Stores, Aecom, and Viking Holdings. Analyst Kate McShane noted that Ulta Beauty's stock has fallen nearly 7% this year, attributing this decline to investor concerns over promotional activities and guidance suggesting slower growth.
However, she believes Ulta is well-positioned to gain market share and that its guidance may be conservative. Similarly, Burlington Stores has seen its shares drop 8% this year, despite strong margin performance and raised guidance for FY26. McShane sees positive catalysts ahead for Burlington, including strong margin flow-through and new store productivity.
Viking Holdings, despite a 20% drop in shares over the past month due to low water levels affecting European river cruises, remains a compelling long-term investment according to analyst Lizzie Dove, who expects continued pricing and capacity growth.
Aecom faces concerns over potential AI disruption and legacy project claims, but Goldman believes the current lower valuation is primarily due to these construction management issues.
Lastly, Goldman anticipates a solid earnings recovery for Alibaba, projecting a 64% and 33% year-over-year increase in EPS for FY27E and FY28E, driven by its leadership in AI and cloud services in China, alongside a recovery in eCommerce profits.
Overall, Goldman Sachs presents a bullish outlook on these stocks, suggesting that current market conditions may provide a favorable entry point for investors