The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes have a high likelihood of outperforming the market. It is a tool for investors to identify stocks with strong growth potential, frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks where Goldman Sachs analysts have the “highest level of conviction” for outperformance. The list sometimes focuses on specific themes, such as artificial intelligence, consumer trends, and sustainability. The Conviction List offers investors a valuable perspective on the stock market, enabling them to identify potential investment opportunities.
Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. We screen the Conviction List of top stock ideas every month, looking for new companies that the firm added to the list and to see which ones it has removed.
For June, the firm added four new stocks, three of which are outstanding total return ideas for growth and income investors, and all three have 20% or more upside potential to Goldman Sachs’ price targets.
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 institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Here are the three new dividend stock additions to the Conviction List for June.
Capital One Financial
The well-known banking giant has significant upside potential to the Goldman Sachs target. Capital One Financial Corp. (NYSE: COF | COF Price Prediction) is a diversified financial services holding company with banking and non-banking subsidiaries. The company offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients through various channels.
It operates through three segments:
- Credit Card
- Consumer Banking
- Commercial Banking
The Credit Card segment comprises domestic consumer and small business card lending, as well as international card businesses in the United Kingdom and Canada.
The Consumer Banking segment includes deposit gathering and lending activities for consumers and small businesses, as well as national auto lending.
The Commercial Banking segment provides treasury management services to commercial real estate and commercial and industrial customers. Its principal operating subsidiary is Capital One National Association, which offers banking products and financial services.
The Goldman Sachs target price of $242 would be a 28% increase from current trading levels.
Mid-America Apartment Communities
With a product that is always in demand and reliable dividends, this is an ideal stock for conservative investors. Mid-America Apartment Communities Inc. (NYSE: MAA) is a multifamily-focused, self-administered, and self-managed real estate investment trust. It owns, operates, acquires, and selectively develops apartment communities. These are primarily located in the southeast, southwest, and mid-Atlantic regions of the United States.
Its Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year.
The Non-Same Store and Other segment includes recently acquired communities, communities being developed or on lease-up, communities that have been disposed of or identified for disposition, and others. The Non-Same Store and Other segment also includes non-multifamily activities and expenses related to severe weather events.
It holds ownership interests in apartment units, including communities in development, across 16 states and the District of Columbia.
Goldman Sachs has set a price target of $192, which represents a 23% gain.
Universal Display
While somewhat off the radar, the growth point and the solid dividend make it an outstanding idea for growth and income investors. Universal Display Corp. (NASDAQ: OLED) is engaged in the research, development, and commercialization of organic light-emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications.
OLED displays can be used in these markets:
- Mobile phones
- Televisions
- Monitors
- Wearables
- Tablets
- Notebook and personal computers
- Augmented reality
- Virtual reality
- Automotive market
The company has an intellectual property portfolio surrounding its existing PHOLED technologies and materials for both display and lighting products, which it markets under the UniversalPHOLED brand.
It licenses its proprietary technologies, including UniversalPHOLED phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The company also develops and offers UniversalPHOLED materials.
Its additional OLED technologies include FOLED (Flexible OLEDs) and OVJP (Organic Vapor Jet Printing).
The Goldman Sachs target price is $183, representing a 28% gain.
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