Welcome to Extreme Investor Network, where we provide unique insights and expert advice on investing in today’s market. In our latest blog post, we’re discussing some smart picks from Goldman Sachs that investors should keep an eye on.
Goldman Sachs analyst Kate McShane believes that despite the challenges facing consumers, there are still opportunities for smart investments. Continued wage growth is expected to support increases in disposable income, but the key question is how much of that translates into discretionary spending versus higher savings, especially among lower-earning Americans.
McShane highlights rising credit card delinquencies, lower savings levels, and a decline in consumer confidence as reasons for caution. In this environment, she recommends being selective in consumer-focused single-stock ideas.
McShane has identified six specific names that she believes can weather the storm, thanks to qualities such as low-price leadership, idiosyncratic growth drivers, and healthy revenue streams. Some of the names on her list include Walmart, Royal Caribbean, and Colgate-Palmolive.
Walmart has seen its stock rally more than 27% in 2024, with analysts predicting further upside. Royal Caribbean has also had a strong year, benefiting from increased demand for travel experiences post-pandemic. Colgate-Palmolive, while already up nearly 17% in 2024, still has potential for further gains according to analysts.
It’s not just Goldman Sachs that sees these stocks as wise investments. Jefferies also listed Colgate-Palmolive as a consumer-facing stock with minimal exposure to shifting consumer behavior.
At Extreme Investor Network, we believe in providing our readers with valuable and actionable investment insights. Stay tuned for more unique perspectives on navigating the complexities of the market and making informed investment decisions.