Goldman Sachs’ Three New High-Conviction Stocks Feature One With 60% Potential Upside

Goldman's three new conviction stocks include one with 60% upside

Explore Goldman Sachs’ Conviction Picks for 2025: Uber, Norwegian Cruise Line, and Belden

Welcome to the Extreme Investor Network, where we bring you insightful analysis and exclusive updates on investment opportunities that matter. As we kick off a new trading year, Goldman Sachs has made headlines by adding three intriguing stocks to its January conviction list, sparking interest among investors looking to capitalize on potential gains.

A Fresh Perspective on Market Leaders

Goldman Sachs curates their “Conviction List — Directors’ Cut” every month, highlighting between 20 to 25 buy-rated stocks that stand out due to their unique fundamentals and growth potential. This month’s additions—Uber Technologies, Norwegian Cruise Line, and Belden—represent a mix of sectors showing promise for 2025 and beyond. Importantly, Goldman has also removed Fox Corp., Parker-Hannifin, and TPG from the list, indicating a strategic shift in their investment outlook.

1. Uber Technologies (NYSE: UBER): A Path to Profitability

Uber Technologies stands out as a compelling pick, with analysts forecasting a compound annual growth rate (CAGR) of 39% in adjusted EBITDA from 2023 to 2026. This projection comes despite the looming reality of autonomous vehicles reshaping the ride-sharing landscape. Analyst Eric Sheridan emphasized that Uber is already making strides in this area, noting five new partnerships in autonomous vehicle technology and an expanded partnership with Waymo, set to launch in Atlanta and Austin in 2025.

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Not just limited to ride-sharing, Uber possesses multiple avenues for robust growth. Goldman predicts that mobility bookings could see mid- to high-teens growth in the next couple of years, supported by an expanding product lineup and improved cross-platform usage. With a price target set at $96—indicating an impressive 60% upside based on recent trading closes—investors are keenly eyeing this underdog as the company continues to evolve post-pandemic.

2. Norwegian Cruise Line Holdings (NYSE: NCLH): Navigating New Waters

In the travel sector, Norwegian Cruise Line presents a golden opportunity. With strategic investments in private islands, the company is positioned to enhance its pricing power significantly over the coming years. Goldman underscores that net yields—measuring revenue per capacity day—could grow in the mid-single digits, and their assessment reveals potential yield improvements of 2.5 percentage points in 2025.

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After a successful year of over 43% growth, Goldman’s target of $35 reflects an additional 36% upside potential. They point to the long-term benefits of low consumer penetration in cruising and how a continued gap with land-based activities could lead to sustained growth. If you’re considering exposure to the travel industry, now may be the perfect time to consider stocks like NCLH, reflecting a booming sector still on the rise.

3. Belden Inc. (NYSE: BDC): A Solid Performer in Industrial Recovery

Belden is another exciting addition to Goldman’s list. As a provider of signal transmission solutions, its stock performance has surged by more than 47% in the past year. Goldman attributes its growth potential to a cyclical recovery expected in industrial end markets.

Delving deeper into geographical exposure, approximately 55% of Belden’s revenue hails from the U.S. (64% from the Americas), indicating robust insulation against any potential overseas industrial weaknesses. The company’s commitment to expanding its software solutions presents an additional growth catalyst.

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With a price target of $139, indicating another 23% upside potential, Belden may represent a sound investment strategy as industrial markets regain momentum.

Conclusion: How to Navigate Investment Decisions in 2025

As you strategize your investment picks for the year, consider positioning yourself in these three stocks highlighted by Goldman Sachs. At Extreme Investor Network, we advocate for an informed approach to investing, complemented by continuous market research and monitoring.

Stay tuned for more market updates, actionable insights, and expert analyses that will help you make informed decisions and maximize your portfolio’s potential in this dynamic investing landscape. Your journey to becoming a savvy investor begins with us!

Happy investing!