The artificial intelligence rally over the past two and a half years, led by the so-called Magnificent 7, was remarkable if you owned those stocks. Those heady days, at least for now, are over. After a brutal sell-off that took the S&P 500 and the Nasdaq into brief bear market levels, the two indexes have clawed back almost all of the losses. Investors are now faced with the challenge of picking the right path for the rest of the year and beyond. The fork in the road of investing still raises many concerns, including tariffs, the potential for a 2025 recession, geopolitical concerns, and more.
We decided to screen the current Goldman Sachs U.S. Conviction List for stocks with solid total return potential that pay 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, they likely will also catch the eye of 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 investment spectrum and will likely continue for years.
AT&T
This is the world’s fourth-largest telecommunications company in terms of revenue. AT&T Inc. (NYSE: T | T Price Prediction) has been undergoing a lengthy restructuring, which is starting to pay off in a big way. The legacy telecommunications company provides worldwide telecommunications, media, and technology services, and its Communications segment offers wireless voice and data communications services.
AT&T sells through its company-owned stores, agents, and third-party retail stores:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- Security
- Cloud solutions
- Outsourcing
- Managed and professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers.
In addition, this segment offers residential customers broadband fiber and legacy telephony voice communication services.
It markets its communications services and products under:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brands.
The Goldman Sachs 12-month price target is $32 a share.
Bank of America
The Bank of America Corp. (NYSE: BAC) is an American multinational investment bank and financial services company. The ubiquitous bank and financial holding company posted solid first-quarter results and is looking to increase the repurchase of its shares.
Its segments include:
- Consumer Banking
- Global Wealth & Investment Management (GWIM)
- Global Banking
- Global Markets
The Consumer Banking segment offers a range of credit, banking, and investment products and services to consumers and small businesses.
The GWIM includes two businesses:
- Merrill Wealth Management, which provides tailored solutions to meet clients’ needs through a complete set of investment management, brokerage, banking, and retirement products
- Bank of America Private Bank, which provides comprehensive wealth management solutions
The Global Banking segment provides various lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services.
The Global Markets segment offers sales, trading, and research services to institutional clients in fixed-income, credit, currency, commodity, and equity businesses.
The Goldman Sachs price objective for the shares is $50.
Baxter International
This healthcare giant offers a solid dividend and outstanding growth potential for 2025. Baxter International Inc. (NYSE: BAX) provides a portfolio of healthcare products in the United States.
The company operates through three segments:
- Medical Products and Therapies
- Healthcare Systems and Technologies
- Pharmaceuticals
It offers:
- Sterile intravenous (IV) solutions
- Infusion systems and devices
- Parenteral nutrition therapies
- Administrative sets
- Generic injectable pharmaceuticals
- Surgical hemostat and sealant products
- Advanced surgical equipment
- Smart bed systems
- Patient monitoring and diagnostic technologies
- Respiratory health devices
- Advanced equipment for the surgical space, comprising operating room integration technologies
- Precision positioning devices and other accessories.
The company also provides specialty injectable pharmaceuticals, inhaled anesthetics, and drug compounding services.
Its products are used in:
- Hospitals
- Nursing homes
- Rehabilitation centers
- Ambulatory surgery centers
- Doctors’ offices
- Kidney dialysis centers
- Patients at home under physician supervision
The company sells its products through a direct sales force, independent distributors, drug wholesalers, specialty pharmacies, or other alternate site providers.
It has an agreement with Celerity Pharmaceuticals to develop generic injectable premix and oncolytic products for acute care. The company operates in Eastern Europe, the Middle East, Africa, Latin America, Asia, Western Europe, Canada, Japan, Australia, and New Zealand.
Goldman Sachs has set a $42 target price.
Philip Morris International
Philip Morris International Inc. (NYSE: PM) is an American multinational tobacco company with products sold in over 180 countries. This company has continued to grow its global market share and blew out first-quarter earnings results. It is one of the largest international cigarette producers, with a share of 28% of the global cigarette/heated tobacco market.
The company’s product portfolio primarily consists of cigarettes and smoke-free products.
Its smoke-free business (SFB) includes wellness and healthcare products and consumer accessories such as lighters and matches.
The company’s segments include:
- Europe
- South and Southeast Asia
- Commonwealth of Independent States
- Middle East and Africa
- East Asia, Australia
- PMI Global Travel Retail
- the Americas
The company’s brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV, and ZYN.
Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products.
Its international cigarette brands are:
- Chesterfield
- L&M
- Philip Morris
It also owns local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
The Goldman Sachs price target is $175.
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