Forget tech and hide out in these stocks instead, Goldman Sachs says

Goldman Sachs highlighted several Buy-rated stocks, citing positive earnings and growth prospects: Expedia exceeded street expectations and management guidance in Q3'26, while Chime modestly beat its intra-quarter pre-announcement and raised full-year guidance again. Goldman raised Hyatt's price target to $215 from $197; Hyatt shares are up almost 16% this year, while Huntington Ingalls Industries reported double-digit revenue growth and trades at 11.0x CY27E EV/EBITDA, despite being down 15% this year. Mastercard beat on its top and bottom lines and is up 15% this year; these are analyst views and company-specific developments, not reported market-wide catalysts.

Analysis

This is a sell-side idea screen, not a common fundamental catalyst; avoid treating its positive tone as independent confirmation. The setup is most interesting where the thesis has a measurable operating check. HII’s upside case depends on converting demand into delivered ships, margins and cash—not simply a robust order environment. Shipyard labor, supplier capacity, schedule slippage or contract-cost pressure could absorb revenue growth; competitors and naval suppliers may face the same capacity constraints, limiting quick substitution. Over 1–3 months, watch delivery cadence, margin and free-cash-flow conversion; over 6–18 months, procurement execution is the key rerating test.

MA’s possible multiple recovery requires growth to reaccelerate relative to Visa, not merely continued payment volume expansion. A weaker consumer, cross-border normalization or renewed client-loss pressure could keep the valuation gap open. For CHYM, rising transaction profit and margin leverage are attractive only if engagement and monetization persist without worsening credit/consumer stress or regulatory pressure on fee economics. H and EXPE are exposed to the same broad travel cycle through different channels: Hyatt’s destination and room-growth assumptions are longer-dated, while Expedia’s B2B partner expansion must translate into profitable bookings. A macro or travel-demand shock can impair both; the cited 2027 setup is not a near-term catalyst. Treat all broker estimates and company outlook claims as hypotheses to verify against filings and subsequent results.

Key Decisions for Investors

• Prefer a staged HII long over buying the full analyst screen: add only if upcoming reporting confirms margin and free-cash-flow conversion alongside revenue growth. Reassess on delivery delays, cost pressure, or a deterioration in cash generation; the central risk is execution, not just demand.
• Consider a conditional MA-versus-V relative-value position only after verifying current valuation and growth metrics: long MA / short V expresses the reacceleration and rerating thesis while reducing broad payments exposure. Exit if MA fails to show relative growth improvement or client-related headwinds persist; do not rely on the article’s valuation comparison without checking current data.
• Keep CHYM on an earnings watchlist rather than chasing momentum. Validate user engagement, transaction-profit growth and margin progression against credit quality and regulatory developments; weakening monetization or rising stress would invalidate the operating-leverage thesis.
• No immediate position in H or EXPE on this item alone. Revisit after evidence that destination demand and net room growth (H), or B2B partner expansion and profitable booking growth (EXPE), are progressing; a broad travel-demand deterioration is a clear falsifier for both.