Goldman Sachs added four new stocks to its September conviction list, including some of the country’s best known brands plus a few energy plays. The stocks are included in the investment bank’s “Conviction List – Directors’ Cut” group of buy-rated companies. As part of its monthly reshuffling, Goldman Sachs placed McDonald’s , Walmart , Cadence Design Systems and Valero Energy on its list of most recommended stocks for September. While two stocks were removed, Viper Energy and Insmed , removals don’t always represent a change in Goldman’s fundamental investment rating on a stock. Goldman’s list now features 22 stocks that range across the health care, financial, natural resource, industrial, consumer and telecommunications sectors the firm considers attractive using several metrics, such as revenue growth and current dividend yield. Companies included range from Johnson & Johnson to Bank of America to AT & T . Several boast a strong track record, including Alnylam Pharmaceutical , which has nearly doubled (92%) this year, and GE Vernova , ahead roughly 75%. The updated list comes as Goldman monitors the health of the labor market, the pace of inflation and monetization of AI, any of which could pose a threat to the U.S. equity rally since the April low. Multiple headwinds “are still restraining sentiment — and may provide the foundation of a ‘wall of worry’ necessary for stocks to climb even higher from here,” analysts led by Steven Kron said in the Tuesday note to clients. New additions On Walmart, Goldman has a $114 price target, suggesting 18% upside for the nation’s largest retailer. The stock has added 8% year to date. “WMT is well positioned through its everyday low prices strategy to continue to gain share in a retail environment that is battling higher merchandise costs driven by new tariffs,” analyst Kate McShane wrote. Walmart is one of the “best-positioned retailers” given its high exposure to food and off-price apparel, both resilient categories in recessionary scenarios, she added. Goldman’s buy rating on Walmart is in the majority on the Street. According to LSEG, 14 of 44 analysts rate it a strong buy, with 29 at buy. Valero, an oil refiner that’s jumped about 25% this year and yields another 3%, could have 7% more upside, according to Goldman. Analyst Neil Mehta said San Antonio-based Valero will benefit from a “refining structural upcycle.” His constructive outlook on refiners is supported by greater OPEC supply and Valero’s commitment to generate cash flow.
