Stock Picks to Consider in April
Goldman Sachs analysts have identified several stocks with potential upside as April begins. These companies are well-positioned as the second quarter kicks off. Below are some of Goldman Sachs’ top picks that are currently rated as a buy:
United Parcel Service (UPS)
The shipping giant’s shares are deemed as a good buy by Goldman Sachs. Analyst Jordan Alliger is optimistic about UPS’s future growth prospects, citing various initiatives discussed during the company’s recent investor meeting that could drive revenue and margin growth into 2026.
- Management’s focus on market penetration and productivity is expected to positively impact revenue and margin growth
- While growth has been challenged in recent years, UPS is poised to demonstrate re-acceleration to gain market confidence
- Despite a decrease in share value this year, Goldman Sachs maintains a Buy rating on UPS, anticipating volume recovery and cost moderation to boost margins
Nasdaq
Nasdaq, a leading index and global markets company, is viewed favorably by Goldman Sachs analyst Alexander Blostein. The firm upgraded Nasdaq’s stock to a buy rating from neutral, emphasizing positive catalysts that could drive growth and valuation multiples higher over time.
- Nasdaq’s focus on financial technology and index revenues is expected to enhance its valuation multiple
- The company’s ability to generate excess free cash flow may lead to buyback opportunities starting in 2025
- With an 8.5% increase in share value this year, Nasdaq is well-positioned to benefit from the improving market conditions
Arcos Dorados
As the operator of McDonald’s in Latin America, Arcos Dorados has faced a dip in its share price this year, presenting an attractive buying opportunity according to Goldman Sachs. Analyst Thiago Bortoluci believes the company’s ongoing sell-off is unwarranted and highlights its growth potential in the Brazilian market.
- Arcos Dorados continues to achieve robust same-store sales and remains a market leader in various regions of Brazil
- The company’s franchise agreement expiring in 2027 could lead to a potential re-rating if extended
- Despite a decline in stock value, Arcos Dorados is poised for consistent growth, an enhanced leadership position, and higher valuations in 2024
Arista Networks
As a leading provider of switches to US hyperscalers, Arista Networks is well-positioned to capitalize on the growth in data and digital transformation trends, as noted by Goldman Sachs. The company’s ability to meet the increasing demand for higher bandwidth and faster speed makes it a favorable investment option.
- Arista Networks’ revised EPS estimates indicate above-consensus growth, instilling confidence in the company’s future performance
Global Payments
Goldman Sachs recently hosted an investor meeting with GPN’s CEO and CFO, gaining valuable insights into the company’s growth strategies. Despite margin expansion challenges, the firm remains impressed by Global Payments’ ability to sustain mid-teens earnings growth amidst various initiatives.
- The company’s consistent earnings growth algorithm and strategic initiatives contribute to its positive outlook
Hot Take: Explore Promising Investment Opportunities
As you navigate the financial market landscape, consider the potential upside of stocks like United Parcel Service, Nasdaq, Arcos Dorados, Arista Networks, and Global Payments. These companies have been identified by Goldman Sachs analysts as solid investment opportunities with growth potential in the coming months.
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