Founded in 1869, Goldman Sachs Group Inc. (NYSE: GS | GS Price Prediction) 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 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 from it. For September, the firm added three blue-chip dividend stocks to the Conviction List, and two top stocks already on the list are also outstanding buys as we head into the seasonal time of year when stocks typically underperform.
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 in which Goldman Sachs analysts have the “highest level of conviction” for outperformance. Three new companies that were added for September, with strong growth potential, recently caught our attention. All pay dependable dividends, and all are among the best ideas now at Goldman Sachs.
Why do 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.
New Conviction List Additions for September
McDonald’s
McDonald’s Corp. (NYSE: MCD) is a multinational American fast-food chain. The legacy fast-food heavyweight is a solid pick when the economy goes south or north, is among the safest large-cap restaurant ideas, and pays a dividend. McDonald’s operates and franchises McDonald’s restaurants in the United States and internationally. Ninety-five percent of McDonald’s approximately 13,500 U.S. restaurants are owned and operated by independent business owners. The company recently expanded its value menu in an attempt to attract more customers.
The company’s restaurants offer:
- Hamburgers and cheeseburgers
- Chicken sandwiches and nuggets
- Fries
- Salads
- Shakes
- Frozen desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks
- Coffee
- Muffins
- Sausages
- Biscuit and bagel sandwiches
- Oatmeal
- Hash browns
- Breakfast burritos
- Hotcakes
McDonald’s second-quarter 2025 results showed net income of $2.25 billion, up 11% from the previous year, with total revenue increasing 5% to $6.84 billion. Global comparable sales grew by 3.8%, driven by a 2.5% increase in the U.S., a 4% increase in international-operated markets, and a 5.6% increase in international developmentally licensed markets. Systemwide sales rose 8%, and consolidated operating income increased 11%, despite $43 million in pretax restructuring charges. Diluted earnings per share reached $3.14, a 12% rise, reflecting strong performance fueled by value-driven offerings, menu innovation, and digital growth.
The Goldman Sachs price target for the shares is $355.
Valero
This is one of the safest ways for investors to play the energy sector as refining capacity has shrunk, and supply has increased. Valero Energy Corp. (NYSE: VLO), through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, as well as petrochemical products.
The company sells its products primarily in:
- United States
- Canada
- United Kingdom
- Ireland
- Latin America
Valero operates through three segments:
- The Refining segment encompasses the operations of its petroleum refineries, the associated activities involved in marketing its refined petroleum products, and the logistics assets that support these operations.
- The Renewable Diesel segment encompasses the operations of Diamond Green Diesel (DGD) and its associated activities, including marketing renewable diesel and renewable naphtha.
- The Ethanol segment includes the operations of its ethanol plants and the associated activities involved in marketing its ethanol and co-products.
Valero owns over 15 petroleum refineries located in the United States, Canada, and the United Kingdom.
Goldman Sachs has a $162 target price for the stock.
Walmart
The retail giant continues to dominate and is one of the few stocks that you can buy and truly hold for the long term. Walmart Inc. (NYSE: WMT) is a technology-powered omnichannel retailer. The company is engaged in the operation of retail and wholesale stores and clubs, as well as websites and mobile applications, located throughout:
- The United States
- Africa
- Canada
- Central America
- Chile
- China
- India
- Mexico
It operates in three reportable segments:
- The Walmart U.S. segment encompasses the company’s mass merchandising concept in the U.S., as well as e-commerce, which includes omnichannel initiatives and other specific business offerings, such as advertising services.
- The Walmart International segment comprises the company’s operations outside the U.S., through its subsidiaries, as well as e-commerce and omnichannel initiatives.
- The Sam’s Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omnichannel initiatives.
Walmart’s second-quarter fiscal earnings were reported on August 21, 2025, and showed a 4.8% revenue increase to $177.40 billion, beating Wall Street’s $175.97 billion forecast. Adjusted earnings per share were $0.68, slightly below the expected $0.73, marking the first earnings miss since May 2022 due to one-time expenses like restructuring and legal costs. U.S. comparable sales rose 4.6%, driven by strong grocery and health categories, while global e-commerce sales jumped 25%. The company raised its full-year sales growth outlook to 3.75% to 4.75% and adjusted EPS to $2.52 to $2.62, reflecting confidence despite the impact of tariff-related cost pressures.
The Goldman Sachs price target is $114.
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