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 United States 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 review the firm’s Conviction List of top stock ideas monthly, looking for new companies added to the list and identifying which companies have been removed. This month, we found four stocks on the Conviction List that are dividend-paying leaders with double-digit upside to the Goldman Sachs target prices.
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’s a tool for investors to identify stocks with strong growth potential and is 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. Four companies with double-digit upside and strong growth potential caught our eye recently. All pay dependable dividends, and all are among the best ideas now at Goldman Sachs.
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 and is likely to continue doing so for years.
Capital One Financial
The “what’s in your wallet” credit card giant’s stock is owned by Warren Buffett in Berkshire Hathaway and is offering an incredible entry point. 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 a variety of channels.
It operates through three segments:
- Credit Card
- Consumer Banking
- Commercial Banking
The Credit Card segment consists of its domestic consumer and small business card lending, and international card businesses in the United Kingdom and Canada.
The Consumer Banking segment consists of its deposit gathering and lending activities for consumers and small businesses, and national auto lending.
Capital One’s Commercial Banking segment consists of its lending, deposit gathering, capital markets and 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 $276 would be a huge 28% gain.
Duke Energy
Duke Energy Corp. (NYSE: DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. This is an excellent idea now. It is located in a growing part of the country and pays a hefty dividend. Duke Energy and its subsidiaries operate as energy companies in the United States.
It operates through two segments:
- Electric Utilities and Infrastructure (EU&I)
- Gas Utilities and Infrastructure (GU&I)
The EU&I segment generates, transmits, distributes, and sells electricity in the Carolinas, Florida, and the Midwest.
To develop electricity, Duke Energy uses the following:
- Coal
- Hydroelectric
- Natural gas
- Oil
- Solar and wind sources
- Renewables
- Nuclear fuel
This segment also sells electricity to municipalities, electric cooperative utilities, and load-serving entities.
The GU&I segment distributes natural gas to
- Residential
- Commercial
- Industrial
- Power generation natural gas customers
The segment also invests in pipeline transmission projects, renewable natural gas projects, and natural gas storage facilities.
The Goldman Sachs price target for the company is posted at $138, almost 14% above the current trading level.
Kodiak Gas Services
This is a way to play the energy sector from the services side, and the company pays shareholders a massive and secure dividend. Kodiak Gas Services Inc. (NYSE: KGS) is the contract compression service provider in the United States, serving as a link in the infrastructure that enables the production and transportation of natural gas and oil.
The company’s segments include Contract Services and Other Services.
The Contract Services segment consists of operating company-owned and customer-owned compression and gas treating and cooling infrastructure to enable the production, gathering, processing and transportation of natural gas and oil.
The Other Services segment consists of a broad range of services to support the needs of its customers, including:
- Station construction
- Customer-owned compression maintenance and overhaul,
- Freight and crane charges
- Parts sales
- Ancillary time and material-based offerings
Kodiak Gas Services offers its services to:
- Oil and gas producers
- Midstream customers in high-volume gas gathering systems
- Processing facilities
- Multi-well gas lift applications
- Natural gas transmission systems
Hitting the $43 Goldman Sachs target price would be almost a 20% gain.
Viper Energy
With a hefty dividend, this mid-cap energy play has huge upside to the Goldman Sachs target price. Viper Energy Inc. (NASDAQ: VNOM) is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.
The company owns, acquires, and exploits oil and natural gas properties in North America.
Viper Energy’s assets consist of mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin in West Texas, substantially all of which are leased to working interest owners who bear the costs of operation and development.
Its assets consist of mineral interests and royalty interests underlying 987,861 gross acres and 35,671 net royalty acres primarily in the Permian Basin. The company’s mineral and royalty interests located in Howard County, Texas, include approximately 1,691 net royalty acres in the Permian Basin and have an average net royalty interest of approximately 8.6%.
The Goldman Sachs price target for the stock is set at $54, which would be a gigantic 45% gain from current levels.
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