2 Stocks Goldman Sachs Believes Could Outperform from Here — Here’s the Case

The Federal Reserve's recent quarter-point rate cut, with economists anticipating 3-5 further cuts by late next year, is viewed by Goldman Sachs strategist David Kostin as beneficial for equities, assuming solid economic growth persists and stabilizing job data supports corporate profit margins. Within this environment, Goldman analysts highlight Celsius Holdings (CELH), an energy drink company that reported 84% YoY revenue growth in 2Q25 following its Alani Nu acquisition, with analyst Bonnie Herzog citing strong category expansion and market share gains; and StepStone Group (STEP), a private markets investment firm, which posted 95% YoY revenue growth in 1Q26, with analyst Alexander Blostein emphasizing its rapid growth as an alternative manager driven by its private wealth business and fundraising, noting an underappreciated call option. Both stocks maintain a "Strong Buy" consensus rating.

Analysis

The Federal Reserve's recent quarter-point interest rate cut, with consensus expectations for three to five additional cuts by the end of next year, has established a favorable macro backdrop for equities, contingent on sustained economic growth. According to Goldman Sachs, this environment supports continued stock market gains, as stabilizing job growth and slower wage growth could bolster corporate profit margins. Within this context, Goldman highlights two specific opportunities. First, Celsius Holdings (CELH), which reported an 84% year-over-year revenue increase to $739.3 million in 2Q25 and a non-GAAP EPS beat of 23 cents. The company's growth is propelled by its expanding market share in the energy drink category, now at 17.3%, and strategic moves including the $1.8 billion acquisition of Alani Nu and an expanded distribution partnership with PepsiCo. Second, StepStone Group (STEP), a private markets investment firm, demonstrated exceptional top-line momentum with a 95% year-over-year revenue increase to $364.3 million in fiscal 1Q26. Goldman's analysis points to its fast-growing Private Wealth business and a significant, potentially underappreciated, catalyst in its 3Q27 call option to buy out a non-controlling interest, which is estimated to be highly accretive to 2028 earnings per share.

Key Decisions for Investors

• Given the Federal Reserve's pivot to an easing cycle, investors should consider maintaining exposure to growth-oriented equities that are supported by a stable economic outlook and the tailwind of lower interest rates.
• For Celsius Holdings (CELH), the combination of hyper-growth (84% YoY revenue), synergistic M&A with Alani Nu, and an enhanced PepsiCo distribution partnership presents a compelling case, though investors must monitor the sustainability of its rapid market share gains as a key performance indicator.
• Investors analyzing StepStone Group (STEP) should model the significant, potentially underappreciated, earnings accretion from its 3Q27 call option, which Goldman identifies as a key catalyst on top of its current 95% YoY revenue growth in the attractive alternative asset management sector.
• While both CELH and STEP carry 'Strong Buy' consensus ratings, it is prudent to weigh the specific catalysts identified by Goldman Sachs, as these appear to underpin their more bullish price targets ($72 for CELH, $83 for STEP) relative to the street average ($67.17 for CELH, $73 for STEP).