Amazon and these four U.S. stocks are latest additions to Goldman’s flagship list
Investing.com -- Goldman Sachs revealed in a note Thursday that it has added Amazon (NASDAQ: AMZN), Burlington Stores (NYSE: BURL), Huntington Ingalls (NYSE: HII), Johnson Controls (NYSE: JCI) and Occidental Petroleum (NYSE: OXY) to its U.S. Conviction List in the bank's October update.
It removed Air Products and Chemicals, ConocoPhillips, Golar LNG, Loar Holdings and Tyson Foods.
On Amazon, analyst Eric Sheridan sees the company producing a strong mix of revenue growth and margin expansion over several years. He pointed to demand for its computing power from AI, improving e-commerce profitability and a growing advertising business.
Goldman analyst Brooke Roach expects Burlington to deliver revenue growth above 10% through 2028, driven by store openings and same-store sales growth above 3%. She also sees margins improving toward the retailer's long-term target of about 10%.
Huntington Ingalls returns to the list after being removed in March. Noah Poponak highlighted the company's position as a pure U.S. Navy shipbuilder, with shipbuilding revenue up 15% to 20% for four straight quarters.
Joe Ritchie said Johnson Controls is in the early stages of a transformation that could more than double earnings per share through 2028. He noted its AI data center cooling business has grown orders by more than 30% for three consecutive quarters, lifting backlog to a record $21 billion.
On Occidental, Neil Mehta said advanced recovery techniques could add 2 billion barrels of oil equivalent to reserves, while cost measures could generate up to $4 billion in additional cash flow by 2030.