Goldman adds Hershey to its October ‘conviction list.’ Here’s who else made the cut

Goldman Sachs updated its U.S. Conviction List for October, adding Abbott Laboratories, Air Products, Hershey, and Madison Square Garden Entertainment, while removing Pinterest, Uber Technologies, and OneStream. The firm cited anticipated margin expansion for Hershey, organic growth from Abbott's product pipeline, Air Products' renewed focus on core competencies, and projected revenue growth for Madison Square Garden Entertainment from increased bookings as key drivers for the new inclusions.

Analysis

Goldman Sachs refreshed its "Director's Cut" list of buy-rated companies for October, adding four new names to its collection of recommended stocks. The investment firm added Abbott Laboratories , Air Products , Hershey and Madison Square Garden Entertainment to its U.S. Conviction List, according to an analyst note on Wednesday. Goldman analysts removed Pinterest , Uber Technologies and OneStream from the list. October is typically a lukewarm month for the stock market. Over the past 50 years, the S & P 500 Index has averaged a return of 0.8% for the month. However, October has seen two massive market downturns — one in 1929, and another in 1987. Traders have even coined a term for their expectations that stocks will suffer big losses during the month: " Octoberphobia ." Analysts explained the factors that elevated Hershey, Abbott Laboratories, Air Products and Madison Square Garden Entertainment to spots on Goldman's U.S. Conviction List. Hershey shares could rise in October because the candy maker is likely to expand its margins in the coming months, according to Goldman analyst Leah Jordan. She explained that the company has room to hike prices across its product line, while its input costs will "at least stabilize and likely decline." Abbott Laboratories' shares could be poised to rise this month, according to Goldman analyst David Roman. He said Abbott's product pipeline, including the approval and launch of its Alinity system, will boost its organic growth to 8% by the end of 2026. Meanwhile, headwinds such as one-time reimbursement changes to the company's Core lab business in China are likely to moderate, Roman said. Air Products also made Goldman's list due to its new management team's focus on returning the company to its core competencies — an objective that "should accelerate topline growth and yield stronger returns for investors," according to Goldman analyst Duffy Fischer. Meanwhile, Goldman analyst Stephen Laszczyk sees a path for Madison Square Garden Entertainment to book 7% annualized revenue growth over the next two years, fueled by increased concert bookings at the Garden and more planned Christmas-themed live shows. Madison Square Garden Entertainment has risen more than 30% year to date, while Hershey and Abbott Laboratories are up roughly 12% and 17%, respectively, in 2025. Air Products has slipped nearly 7% since the beginning of this year. Goldman Sachs has updated its U.S. Conviction List for October, adding Abbott Laboratories (ABT), Air Products (APD), Hershey (HSY), and Madison Square Garden Entertainment (MSGE), while removing Pinterest, Uber, and OneStream. The additions are underpinned by specific, forward-looking catalysts. For Hershey, analysts anticipate margin expansion driven by pricing power and stabilizing input costs. Abbott Laboratories is highlighted for its product pipeline, with the Alinity system launch expected to drive organic growth to 8% by 2026, while headwinds from its China lab business are projected to moderate. Air Products' inclusion市场 on a new management team's strategic refocus on core competencies, which is expected to accelerate topline growth. Madison Square Garden Entertainment is projected to achieve 7% annualized revenue growth over the next two years, fueled by increased concert bookings and more live shows. The selections come despite the market's historical "Octoberphobia," suggesting confidence in these names' fundamental drivers. Notably, MSGE (+30%), ABT (+17%), and HSY (+12%) have strong year-to-date returns, whereas APD's inclusion follows a nearly 7% decline, indicating a potential turnaround thesis.

Key Decisions for Investors

• Investors should evaluate the newly added stocks to Goldman's Conviction List, as they are backed by specific, company-level catalysts that may offer outperformance in a historically volatile month for equities.