Strategists Say Sell The AI Rally Now – Buy 5 Goldman Sachs Conviction List Top Picks With Massive Upside Potential

While the stock market has done much better in 2023, the reality is that ten companies have made up 95% of the gains in the S&P 500, and nine of the ten most heavily weighted stocks in the Nasdaq 100 have accounted for almost all of the gains. What do these stocks have in common, you may be wondering? They are almost all technology stocks, and it’s likely that the technology sector continues to drive upside for the rest of the year.

The good news for growth investors is there are still solid opportunities in technology, the bad news is that companies that have driven the huge year-to-date gains, like Nvidia Corp. and Meta Platforms, are very overbought and likely due to consolidate some.

The analysts at Goldman Sachs have refined the firm’s very popular Conviction List of top stock picks and, on a monthly basis, will refresh the list with new ideas and updates. Here is what they said about the new research launch.

We introduce a new investment list highlighting a selection of fundamental Buy-rated US stocks across the Goldman Sachs Americas Global Investment Research department — sourced from our US research analysts, but chosen by members of our Investment Review Committee. This new “Conviction List – Directors’ Cut” is designed to provide investors with a curated and active list of 20-25 of what we believe to be our most differentiated fundamental Buy ideas across our US stock coverage. We intend to refresh and publish this list monthly in an easily digestible framework that emphasizes the key criteria underlying the analyst’s investment thesis to best aid a portfolio manager’s investment process.

We screened the Conviction List for the stocks that have the biggest upside potential to the posted Goldman Sachs price target. Five top companies come in with the potential for some massive gains, and while all are Buy rated at Goldman Sachs, it’s important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

The stocks are listed in order of the biggest upside potential.

Warner Bros. Discovery

The stock has been crushed since the merger between the two companies giving investors an awesome entry point. Warner Bros. Discovery, Inc. (NASDAQ: WBD) operates as a media and entertainment company worldwide. It operates through three segments: Studios, Networks, and DTC.

The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to third parties and networks and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television markets. The DTC segment offers premium pay-tv and streaming services.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Source: Read Full Article