Goldman Sachs says buy these five stocks that are set to rally

Goldman Sachs analysts have identified Apple, MasTec, BJ's, Valvoline and Kontoor Brands as buy-rated stocks with significant upside potential. Specific catalysts include robust utility spending and pipeline construction for MasTec, Valvoline's strong brand and refranchising opportunities, and Kontoor's Wrangler brand momentum and Helly Hansen acquisition; Goldman believes the market undervalues Apple's ecosystem.

Analysis

Goldman Sachs has identified five U.S. equities—Apple (AAPL), MasTec (MTZ), BJ's Wholesale Club (BJ), Valvoline (VVV), and Kontoor Brands (KTB)—as possessing significant upside potential, underpinned by a strongly positive sentiment (overall score 0.8) and bullish analyst outlooks. For MasTec, newly rated as a Buy with an increased price target of $195 from $156, Goldman anticipates robust utility spending and a ramp-up in oil and gas pipeline construction to drive upward estimate revisions, projecting the Pipeline Infrastructure segment to achieve approximately $2.4-2.5 billion in annual revenue; MTZ shares have already appreciated 19% this year. Valvoline, also upgraded to Buy, is recognized for its strong brand, macroeconomic resilience, limited tariff exposure, and significant growth potential within the 'do-it-for-me' oil change market where it holds only a 6% share, with refranchising opportunities expected to add further value. Kontoor Brands, with reinstated Buy coverage, is considered 'too attractive to ignore' despite a 27% year-to-date share price decline, with catalysts including robust Wrangler brand momentum, stabilizing Lee trends, and growth prospects from the Helly Hansen acquisition. Apple maintains its Buy rating as Goldman believes the market overlooks its ecosystem strength and revenue durability, viewing its current valuation as attractive. BJ's Wholesale Club's Buy rating is reiterated, with expectations of earnings upside driven by strong traffic trends, grocery volume growth, and enhanced customer engagement in general merchandise following an assortment refresh.

Key Decisions for Investors

• Investors should consider evaluating these Goldman Sachs buy-rated stocks, particularly MasTec given its upgraded rating, specific pipeline-driven revenue projections, and a new $195 price target.
• The analysis suggests potential for Valvoline to expand its 6% market share and benefit from refranchising, while Kontoor Brands offers a recovery play with strong brand momentum and acquisition synergies, warranting a closer look at their respective growth strategies.