Goldman’s 10 high-conviction stocks for January

With the S&P 500 rising 24% last year, now may not be the best time to increase your equity exposure. But if you do want to buy, you might consider these 10 stocks.

They are among the best known from Goldman Sachs’ “Conviction List – Director’s Cut,” which includes 23 stocks. Here are the tempting 10, in alphabetical order.

Related: Why these key investors believe the tech bull market has begun

1. Amazon  (AMZN) – Get Free Report: Goldman Sachs 12-month price target, $190. Tuesday’s closing price: $149.90.

2. Apple  (AAPL) – Get Free Report: Goldman Sachs 12-month price target, $227. Tuesday’s closing price: $186.65.

3. Chevron  (CVX) – Get Free Report: Goldman Sachs 12-month price target, $180. Tuesday’s closing price: $149.50.

4. Constellation Brands  (STZ) – Get Free Report: Goldman Sachs 12-month price target, $290. Tuesday’s closing price: $243.90.

5. First Solar  (FSLR) – Get Free Report: Goldman Sachs 12-month price target, $275. Tuesday’s closing price: $172.15.

Banking, Pharmaceuticals, Semiconductors

6. JP Morgan Chase JPM: Goldman Sachs 12-month price target, $188. Tuesday’s closing price: $172.10.

7. Merck MRK: Goldman Sachs 12-month price target, $128. Tuesday’s closing price: $113.25.

8. Nvidia NVDA: Goldman Sachs 12-month price target, $625. Tuesday’s closing price: $481.70.

9. Parker Hannifin PH: Goldman Sachs 12-month target price, $551. Tuesday’s closing price: $458.60.

10. Southern Co. SO: Goldman Sachs 12-month price target, $82. Tuesday’s closing price: $70.85.

Parker Hannifin was the only new entrant on the monthly list. Goldman analyst Joe Ritchie believes Parker Hannifin is “uniquely positioned to benefit from the proliferation of mega projects we are seeing in the U.S.,” Goldman said.

The company “has one of the largest networks of industrial distributors domestically with one of the broadest industrial product offerings.”

Goldman’s Market Themes for 2024

Goldman cited seven themes that will buoy its stock picks this year. Here are five of them.

1. Generative artificial intelligence. “Our analysts believe that AI innovation will boost productivity leading to a 0.4% increase in annual GDP growth,” Goldman said.

2. Green capital expenditures. “Corporations are responding to the opportunity that is emerging as governments incentivize a wave of new development to help transition from fossil fuels to renewable energy sources,“ Goldman said.

3. The echo-boom of the post-pandemic era. “This may be the theme that keeps on giving, but it also may be entering its last year, as the world continues to slip back to a new post-pandemic normal,” Goldman said.

4. Manufacturing renaissance. “At the nexus of green capital expenditures, deglobalization, the Inflation Reduction Act [which includes substantial infrastructure spending], and lingering post-pandemic supply chain concerns lies the manufacturing renaissance,” Goldman said.

5. Internet growth maturation and the blurring of business models. “Growth is maturing for the Internet,” Goldman said. “And lower growth rates are driving industry participants to explore new avenues for growth.

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