The artificial intelligence-driven technology rally led by the so-called Magnificent 7 over the past two years has been remarkable if you own those stocks. However, most of the S&P 500 is treading water and will not likely catch up to the hype-driven AI stocks soon.
24/7 Wall St. Key Points:
- 2024 has been another strong year for the equity markets
- Goldman Sachs is one of the premier investment banks in the world
- Need a 2024 portfolio check-up? Financial advisors can do an end-of-the-year. Click here to find one that is right for you.
One thing remains certain: with storm clouds gathering on the economic horizon, the risk of an escalating conflict in the Middle East, and the market once again very overbought, many Wall Street strategists are cautious, predicting modest single-digit gains for the remainder of 2024. However, a significant 20% or more sell-off could also be possible—something we tasted in July when the Nasdaq briefly slid into 10% correction territory.
We decided to screen the December Goldman Sachs U.S. Conviction List for stocks with solid total return potential and dependable dividends for those seeking passive income. Four top companies caught our eye, and when they are among the top stock picks at the world’s most prestigious investment bank and pay high-yield dividends, they likely will also catch the eye of Wall Street and most savvy investors.
Why we recommend Goldman Sachs stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide clients with the best ideas across the investing spectrum and is likely to continue to for years.
Brixmor Property Group
This Goldman Sachs pick is a publicly traded real estate investment trust focusing on shopping centers.
This industry-leading investment trust (REIT) looks ready to break out to a 52-week high and pays a solid 4% dividend. Brixmor Property Group Inc. (NYSE: BRX | BRX Price Prediction) is a real estate REIT that owns and operates a high-quality national portfolio of open-air shopping centers.
The company’s 359 retail centers comprise approximately 64 million square feet of prime retail space in established trade areas. The Company strives to own and operate shopping centers that reflect Brixmor’s vision to be at the center of the communities they serve and are home to a diverse mix of thriving national, regional, and local retailers.
Brixmor is a real estate partner to over 5,000 retailers, including TJX, Kroger, Publix Super Markets, and Ross Stores. Goldman Sachs has a $34 target price objective.
Conagra Brands
This Goldman Sachs pick is an American consumer packaged goods holding company.
This consumer packaged food giant is a very safe idea that pays a stellar 5.06% dividend. Conagra Brands Inc. (NYSE: CAG) and its subsidiaries operate primarily in the United States as a consumer packaged goods company. The company has four segments.
The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
The International segment offers food products in various temperature states through retail and food service channels outside the United States.
The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.
The company sells its products under these well-known brands:
- Birds Eye
- Marie Callender’s
- Duncan Hines
- Healthy Choice
- Slim Jim
- Reddi-Wip
- Angie’s
- BOOMCHICKAPOP
The Goldman Sachs price target for the shares is $36.
Philip Morris International
This American multinational tobacco company, which sells products in over 180 countries, is another Goldman Sachs pick.
This company has continued to grow its global market share and pays a big 4.35% dividend. Philip Morris International Inc. (NYSE: PM) is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.
Key combustible brands include:
- Marlboro
- Parliament
- L&M
The company is commercializing IQOS, a heat-not-burn product, in over 40 markets, which could drive earnings in the future. Most on Wall Street believe Philip Morris International offers superior underlying growth prospects, both near-term and long-term.
The share price has been trading in a range lately as investors have embraced the growth potential of its reduced-risk products. All sales are outside the United States. The Goldman Sachs price target is set at $150.
Suncor Energy
This Goldman Sachs pick operates as an integrated energy company in Canada, the United States, and internationally.
Looking like a breakout candidate and paying a huge 4.26 dividend, Suncor Energy Inc. (NYSE: SU) is the perfect stock for investors looking for energy exposure. It operates as an integrated energy company in Canada, the United States, and elsewhere.
It operates through two segments:
- Oil Sands, Exploration, and Production
- Refining and Marketing
The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The exploration and production segment is involved in offshore operations on the East Coast of Canada and in crude oil and natural gas marketing and risk management.
The Refining and Marketing segment uses retail and wholesale networks to refine crude oil products and distribute, market, transport, and manage the risk of refined, petrochemical, and other purchased products.
This segment also trades crude oil, refined products, natural gas, and power.
The Goldman Sachs has a $45 price objective.
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