Goldman Sachs has identified CAE as a stock that has been unfairly punished due to struggles in its main divisions, civil aviation and defense. The investment bank believes that the stock is undervalued compared to its peers in the aerospace supply chain. Analyst Noah Poponak recommends buying the dip in shares of this Canadian training and simulation provider, emphasizing the growth and margin potential of its Civil segment. Despite being down 17% this year, CAE is seen as a significantly undervalued commercial aerospace asset by Poponak.
Analyst Kate McShane from Goldman Sachs is bullish on BJ’s Wholesale Club. The warehouse club has seen burgeoning membership trends, strong traffic, and robust earnings potential. With a strong top and bottom line beat in their recent earnings report, BJ’s continues to open new stores in new markets, showcasing a long runway for growth. McShane believes that the company still has plenty of room to run, with shares up 20% this year.
Workday has caught the attention of Goldman Sachs due to its strategic growth initiatives paying off. Analyst Kash Rangan highlights the company’s potential to grow into a $20 billion business, driven by financials moving to the cloud. With shares up nearly 25% in the past three months, Workday is attractively valued according to Goldman. The enterprise cloud management company has demonstrated strong customer retention rates and is set to sustain long-term growth over the coming years.
Based on management comments and industry conversations, Goldman Sachs believes that CrowdStrike (CRWD) will see a return to 20%+ revenue growth and 30%+ EPS growth over the next 12-24 months. The company’s earnings commentary has shown a thoughtful approach to regaining industry leadership. With a focus on transparency and engagement, CrowdStrike is positioned for success in the cybersecurity sector.
Ducommun is another stock recommended by Goldman Sachs for its strong growth outlook. The company is expected to benefit from exposure to aerospace original equipment as OEMs ramp up production to meet high demand. Despite pressures in its defense business, recent orders and easier compares are set to accelerate growth in that segment. With fundamentals strong in the aerospace aftermarket, Ducommun presents a compelling investment opportunity.
Goldman Sachs has identified a set of undervalued stocks with significant growth potential in various sectors. As investors look for opportunities in the market, these companies present compelling investment cases according to Goldman Sachs analysts. It will be interesting to see how these stocks perform in the coming months and whether their growth potential translates into positive returns for shareholders.