Goldman Sachs has recently included three new stocks in its highly regarded conviction list, known as the "directors' cut" list. These stocks are Baxter, Deere, and Viper Energy. Baxter, a health-care company, was added to the list due to its potential for a turnaround after a period of underperformance.
Analyst David Roman from Goldman Sachs noted that Baxter tends to outperform the market when focusing on optimizing the profits of its existing industrial health-care footprint. The stock has shown promising signs with a rally of more than 20% this year following a 24% loss in 2024.
Investors can benefit from the firm's strategic insights and recommendations to potentially improve their portfolio performance. The "directors' cut" conviction list showcases Goldman's commitment to delivering value and innovative solutions in the ever-evolving financial market landscape.
Baxter: A Health-Care Turnaround Story
One of the stocks newly added to Goldman's conviction list is Baxter, a health-care company that has shown signs of a turnaround following a period of underperformance. Analyst David Roman is optimistic about the stock's potential for market outperformance as the company focuses on optimizing its existing industrial health-care operations.
These additions to Goldman Sachs' conviction list reflect the firm's confidence in the growth potential and solid fundamentals of Baxter, Deere, and Viper Energy in their respective sectors. Investors are now closely watching these stocks for further developments and potential market outperformance based on Goldman's recommendations.
Goldman Sachs has recently included three new stocks in its highly esteemed conviction list, which consists of 20 to 25 carefully selected stocks that the firm believes to be exceptional investment opportunities.
Deere: A Strong Contender in Farm Equipment
Deere, the world's leading farm equipment manufacturer, has also secured a spot on Goldman's conviction list. Despite a recent drop in quarterly revenue, analyst Jerry Revich anticipates a positive upturn in earnings as the company nears a cyclical low for agricultural equipment inventory.
Viper Energy, which specializes in owning and acquiring mineral and royalty interests in oil and natural gas properties, was the third addition to Goldman's conviction list. Analyst Neil Mehta expressed bullishness on Viper Energy's "unique no capex business model" and recommended it as a compelling way to gain exposure to the Permian Basin. Although shares of Viper Energy have experienced a slight decline of about 2% this year, they had a remarkable 56% rally in 2024.
Viper Energy: A Unique Investment Opportunity
Viper Energy, specializing in mineral and royalty interests in oil and gas properties, has been identified as another promising stock by Goldman Sachs. Analyst Neil Mehta is bullish on the company's distinctive business model and views it as an attractive way to gain exposure to the Permian Basin.
Deere, the world's largest farm equipment maker, was also favored by Goldman Sachs. Despite reporting a 35% drop in quarterly revenue recently, Goldman analyst Jerry Revich sees potential for a positive inflection in earnings as the company nears a cyclical bottom for agricultural equipment inventory. Deere's shares have gained over 12% in 2025.
