The Goldman Sachs Conviction List is a curated list of stocks that the firm’s research team believes have a high likelihood of outperforming the market. It is a tool for investors to identify stocks with strong growth potential, and it is frequently updated to reflect changes in market conditions and company performance. The list aims to pinpoint stocks in which Goldman Sachs analysts have the “highest level of conviction” for outperformance. The list has been known to focus on specific themes, such as artificial intelligence, consumer trends, and sustainability. The Conviction List offers investors a valuable perspective on the stock market, enabling them to identify potential investment opportunities.
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Every month, we cover the new additions to the Goldman Sachs Conviction List of top stock picks.
This month’s additions include one of our favorite REIT stocks and a potential data center winner.
The Goldman Sachs Conviction list members have performed well over the years and are the top ideas from the premier investment bank.
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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. We review the firm’s Conviction List of top stock ideas monthly, looking for new companies added to the list and checking which companies have been removed.
For November, the firm added four new stocks, three of which are outstanding total return ideas for growth and income investors. The two featured here have double-digit upside potential to the Goldman Sachs price targets.
Why we recommend Goldman Sachs stocks
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Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Here are the two new stock additions to the Conviction List for November.
Brixmor Property Group
Brixmor Property Group Inc. (NYSE: BRX) is a publicly traded real estate investment trust (REIT) that invests in shopping centers and retail properties. This industry-leading company pays a solid 4.25% dividend. This internally managed REIT conducts its operations primarily through Brixmor Operating Partnership and subsidiaries. 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.
Brixmor Property Group’s portfolio consists of approximately 360 retail centers totaling over 64 million square feet of GLA.
The company’s projects include:
Dickson City Crossings
East Port Plaza Electric
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.
The Goldman Sachs analyst offered this in the new report:
Caitlin Burrows believes the retail REIT is well-positioned to benefit from strong demand for space from retailers at open-air/strip malls, as well as a resilient US consumer, with limited new supply being built. Look for its upgraded real estate portfolio, strong occupancy rates, and high-quality tenants to help drive its best-in-class 5% Funds from Operations growth/year through 2027.
Goldman Sachs has a $32 target price, representing a 22% gain from current trading levels.
nVent Electric
While this is likely a stock with which most investors are unfamiliar, this company could have a significant presence in the data center space and pays a small 0.72% dividend. nVent Electric PLC (NYSE: NVT) is a global provider of systems protection and electrical connection solutions.
The company designs, manufactures, markets, installs, and services high-performance products and solutions that connect and protect sensitive equipment, buildings, and critical processes. It operates through two segments.
The Systems Protection segment provides solutions to help protect electronics, systems, and data in mission-critical applications, including data centers, that improve reliability and energy efficiency. It also includes businesses such as enclosures, switchgear, and bus systems.
Its Electrical Connections segment provides solutions that connect power and data infrastructure. The company’s offerings enhance end-user safety, reduce installation time, and provide resiliency for critical systems.
Its robust portfolio of electrical product brands includes:
nVent Caddy
Erico
Hoffman
Ilsco
Schroff
Trachte
Goldman Sachs offered this in the report:
Joe Richie views the company’s leading position in providing liquid cooling systems to data centers and utilities as driving sustained acceleration in top-line growth. Top line growth that first became visible with 2Q results and was corroborated with a 3Q beat-and-raise. NVT has already grown its exposure to data center and utility end markets to 40% from only 12% over the past eight years, and there is a visible path to even greater exposure as new orders outpace topline growth.
The Goldman Sachs target price for the shares is $140, representing a 22% gain.
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