Goldman Sachs has refreshed its 'U.S. Conviction List — Director's Cut' for October, introducing five new buy-rated stocks: Amazon, Burlington Stores, Huntington Ingalls, Johnson Controls, and Occidental Petroleum. The firm removed five stocks, including Air Products and Chemicals and Tyson Foods, indicating a strategic shift in its investment focus.
Analyst Eric Sheridan highlights Amazon's potential for over 50% upside, driven by growth in AI-related demand for AWS, improved e-commerce profitability, and advertising growth. Despite underperforming the S&P 500 over the past year, Sheridan views this as an attractive entry point. Huntington Ingalls, with a price target of $439, is seen as a key player in U.S.
Navy shipbuilding, benefiting from government focus on domestic defense. Burlington Stores, targeted at $382, is expected to rebound from recent underperformance due to strategic marketing and operational improvements. Overall, these additions reflect Goldman Sachs' confidence in these companies' growth potential amidst current market conditions