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. Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. Its 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 do so for years to come.
In a recent interview with CNBC, Goldman Sachs Timothy Moe, the firm’s Chief Head of APAC Equity Strategy, noted the long gap of over nine months between now and the last correction in 2025, and said that the “Historical clock is ticking: in terms of markets being overdue for a correction and citing growing global geopolitical tension and the possibility of additional tariffs on European goods.” He also reminded viewers that over the last 25 years, we have experienced a 10% correction every eight to nine months. Interestingly, he said the Goldman Sachs research team is increasingly focusing on the energy sector, and that while prices could be flat to down this year, they could start moving higher in 2027.
With the potential for a correction over the next few months, we decided to screen the Goldman Sachs January Conviction List of the firm’s top stocks, looking for safe ideas investors can rotate into that also pay outstanding, reliable dividends. Five top companies are solid bets for investors now, and two are in the energy sector that Goldman Sachs is optimistic about for the future.
Why we recommend Goldman Sachs stocks
Goldman Sachs maintains its status as Wall Street’s premier firm through its undisputed leadership across virtually every major category. Over the 15 years we have covered the firm, it has remained the go-to bank for almost every financial need.
Brixmor Property Group
This quality real estate investment trust (REIT) offers steady, reliable income, a portfolio of outstanding properties, and a rich 4.31% dividend. Brixmor Property Group (NYSE: BRX | BRX Price Prediction) is an internally managed REIT. The company conducts its operations primarily through Brixmor Operating Partnership and subsidiaries (collectively, the Operating Partnership).
The company owns and operates open-air retail portfolios by gross leasable area (GLA) in the United States, comprised primarily of community and neighborhood shopping centers. The Company’s portfolio consists of approximately 360 retail centers totaling over 64 million square feet of GLA.
Brixmor Property Groups projects include:
- Dickson City Crossings
- East Port Plaza
- Fox Run
- Gateway Plaza
- Old Bridge Gateway
- Pointe Orlando
- Shops at Palm Lakes
- Stewart Plaza
- Tinley Park Plaza
- Tyrone Gardens
- Vail Ranch Center
- Venice Village
- Village at Mira Mesa
- Westminster City Center
The company’s national portfolio is primarily located within established trade areas in the top 50 Core-Based Statistical Areas in the United States.
Goldman Sachs has a $32 target price for the stock, representing 23% upside potential.
Duke Energy
Duke Energy Corp. (NYSE: DUK) is an American electric power and natural gas holding company headquartered in Charlotte, North Carolina. It is located in a growing part of the country and pays a hefty 3.52% dividend. Duke Energy operates through two segments.
The Electric Utilities and Infrastructure 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 Gas Utilities and Infrastructure 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.
Goldman Sachs has a $141 price target, which represents a 20% gain from current trading levels.
Hershey
With Valentine’s Day right around the corner, this is an excellent idea for growth and income investors with a solid 2.77% dividend. Hershey Co. (NYSE: HSY) is a snacks company. Its portfolio includes chocolate and confectionery brands such as:
- Hershey’s
- Reese’s
- Kisses
- Kit Kat
- Jolly Rancher
- Ice Breakers
- Shaq-a-licious
The North America Confectionery segment is responsible for its traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes its business in:
- Chocolate and non-chocolate confectionery
- Gum and refreshment products
- Protein bars
- Spreads
- Snack bites and mixes
- Pantry and food service lines
This segment also includes its retail operations.
The North America Salty Snacks segment is responsible for its salty snacking products in the United States. This includes ready-to-eat popcorn, baked, trans-fat-free snacks, pretzels, and other snacks, including the SkinnyPop and Dot’s Homestyle Pretzels brands.
The Goldman Sachs target price of $220 represents a huge 21% gain for investors.
Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) is a multinational American corporation specializing in pharmaceuticals, biotechnology, and medical devices. With shares trading at 14.5 times forward earnings and a 2.31% dividend, this diversified healthcare giant is a strong buy at current prices.
Johnson & Johnson is among the most conservative of the major pharmaceutical companies, with a diverse product portfolio and a familiar, solid brand. The company researches, develops, manufactures, and sells a range of healthcare products. Its primary focus is on products related to human health and well-being.
The Innovative Medicine segment is focused on various therapeutic areas, including:
- Immunology
- Infectious diseases
- Neuroscience
- Oncology
- Pulmonary hypertension
- Cardiovascular and metabolic diseases
Products in this segment are distributed directly to retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use.
The MedTech segment encompasses a diverse portfolio of products used in orthopedics, surgery, interventional solutions, cardiovascular intervention, and vision care. It also offers a commercially available intravascular lithotripsy platform for the treatment of coronary artery disease and peripheral artery disease.
The $240 Goldman Sachs target price is 16% above current levels.
Valero
This is one of the safest ways for investors to play the energy sector, as refining capacity has shrunk while supply has increased. Valero Energy Corp. (NYSE: VLO) is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels, as well as petrochemical products, and it pays a dependable 2.43% dividend.
The company sells its products primarily in:
- The United States
- Canada
- The United Kingdom
- Ireland
- Latin America
Valero operates through three segments:
- The Refining segment encompasses the operations of its petroleum refineries, the associated marketing activities for its refined petroleum products, and the logistics assets that support these operations.
- The Renewable Diesel segment encompasses Diamond Green Diesel 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 target price of $197, which would be a gain of 19%.
The Russell 2000 Is Crushing 2026: Four Red-Hot High-Yield Dividend Stocks to Buy Now
Top Gaining Stocks
Top Losing Stocks