Goldman Sachs has highlighted five stocks it believes investors should consider buying following recent market weakness.
According to the Wall Street banking giant, the recent sell-off in several high-quality companies has created attractive entry points, with the selected stocks supported by strong growth catalysts.
Alibaba (NYSE: BABA)
Goldman Sachs remains bullish on Alibaba (NYSE: BABA) as the Chinese technology giant continues to benefit from accelerating demand for artificial intelligence and cloud services.
The bank expects Alibaba to deliver a strong earnings recovery over the next two fiscal years, driven by its leadership in China’s AI and cloud markets. Analysts also see improving profitability in the company’s e-commerce business as losses from quick-commerce operations narrow.
The outlook comes as investors increasingly focus on Alibaba’s AI infrastructure and cloud computing segment, which has become a key growth engine alongside its core online retail operations.
Ulta Beauty (NASDAQ: ULTA)
According to Goldman Sachs, Ulta Beauty (NASDAQ: ULTA) has become a buying opportunity after recent share price weakness, despite concerns about promotional activity across the beauty sector.
The company reported strong second-quarter results, with net sales rising 8.9%, operating income increasing 10.1%, and earnings per share climbing 13.3%. Ulta also raised its full-year guidance, signaling confidence in continued demand.
Analysts expect Ulta to continue gaining market share as it benefits from exclusive product offerings, customer loyalty programs, and expansion initiatives.
The retailer’s ability to grow sales and profits in a competitive environment remains a key reason for Goldman Sachs’ positive stance.
Burlington Stores (NYSE: BURL)
Goldman Sachs also sees value in Burlington Stores (NYSE: BURL) after investors reacted negatively to a mixed quarterly report.
While comparable sales growth disappointed some market participants, Burlington continues to execute well on profitability and expansion. The retailer recently reaffirmed expectations for total sales growth of 10% to 11% in fiscal 2026 and plans to open about 115 net new stores.
The bank believes strong margins, improving store productivity, and multiple operational growth drivers should support earnings growth over the coming years.
Viking Holdings (NYSE: VIK)
Luxury cruise operator Viking Holdings (NYSE: VIK) has fallen sharply in recent weeks amid concerns about low water levels affecting parts of its European river cruise business.
However, Goldman Sachs continues to view the stock as a compelling long-term opportunity due to its affluent customer base and differentiated geographic exposure.
Recent company filings showed second-quarter revenue increased 16.5%, while adjusted EBITDA rose 18.2%. The company has already sold 96% of its 2026 cruise capacity and 53% of its 2027 capacity.
Strong booking trends and planned capacity growth into 2027 continue to support the long-term investment case despite near-term operational challenges.
AECOM (NYSE: ACM)
Goldman Sachs analysts believe recent weakness in AECOM (NYSE: ACM) shares has created an opportunity for investors willing to look beyond current concerns.
The engineering and infrastructure company has faced pressure from fears that AI could disrupt parts of the design industry, along with uncertainty surrounding legacy construction management projects.
However, Goldman argues the market may be overestimating these risks, resulting in a valuation discount that does not fully reflect AECOM’s long-term growth prospects.
The bank expects the company to benefit from ongoing infrastructure spending and its established position in engineering and consulting services.
Be the first to comment