The state of the consumer may be strong in 2025, according to Goldman Sachs, and there are several stocks that could be primed for upside as a result. “We forecast a still robust consumer as [ disposable personal income ] continues to grow, albeit at a slower rate and as elevated interest rates ease,” the firm’s analysts wrote in a note to clients this week. Goldman expects essential expenditure growth to lessen to 2.3% this year, down from 3.6% in 2024, saying that it should benefit from dwindling energy costs, a deceleration in health-care spending growth and food inflation in the low single digits. “Ultimately, we expect this to drive an acceleration in discretionary cash inflow for the US consumer in 2025, up 4.9% (vs +4.2% in 2024), which should support a healthy discretionary spending backdrop along with higher savings,” the firm’s analysts wrote. With that in mind, Goldman’s analysts laid out several names for the new year that they think are best positioned to benefit. Below are some of the stocks that came up. The firm’s analysts noted that there’s still investor concern around whether Wingstop has enough comp drivers to see positive same-store sales growth this year, but gains may still be in store for the restaurant chain. “We continue to see a significant brand awareness opportunity as WING’s advertising expense increases, with the new multi-year partnership with the NBA supplementing advertising during NFL games,” they wrote in the note. “Additionally, the company continues to maintain an advantage over peers on the digital front, with over 45mn unique users in its customer database, digital sales now c.70% of total sales, and the company rolling out its proprietary tech platform MyWingstop (providing hyper-personalization for digital guests).” Goldman’s bullish sentiment is among a majority of analysts on Wall Street that hold a similar view. In fact, 15 out of 25 analysts covering Wingstop have a strong buy or buy rating on the name, per LSEG data. And the stock’s average price target of nearly $371 reflects 35% upside potential. Wingstop climbed nearly 11% in 2024. That said, the stock has fallen more than 16% in the past month and more than 30% over the past three. Dick’s Sporting Goods , another name on Goldman’s list, significantly outperformed the broader market last year, surging more than 55%. The stock may only go higher from there, according to the firm. Notably, Goldman said that Dick’s has the potential for future multiple expansion, citing growth in operating income through its GameChanger app, which provides various features such as scorekeeping and live video streaming to teams and fans in the U.S. “As DKS continues to grow the Game Changer platform while digital ad dollars likely continue to shift to retail from search, we see an opportunity for incremental growth from a retail media network, which similar to that of other retailers, would have a greater impact to [earnings before interest and taxes] (vs. the top line) given its higher margin profile,” the firm said. The Street is pretty split on the name, however. While 14 out of 29 analysts covering Dick’s have a strong buy or buy rating, another 14 have rated it as hold, according to LSEG. Consensus price targets call for 4% upside potential. Chipotle , which posted gains of nearly 32% in 2024, has experienced a double-digit pullback from its highs. Goldman said this offers a “compelling” opportunity for investors. Further, if the return-to-office trend picks up, Chipotle would be one of the major beneficiaries alongside Sweetgreen, the analysts said. “We believe that CEO Scott Boatwright’s (previously COO) and CFO Adam Rymer’s significant prior experience at Chipotle will allow the company to continue and to build on improvements that were being made under [former CEO] Brian Niccol,” Goldman analysts said. They noted that they see this playing out in “several” key ways, such as through process enhancements and technological investments. The Street is mostly bullish on the restaurant, with 26 out of 36 analysts giving it a strong buy or buy rating, per LSEG. Additionally, its average target of about $67 implies more than 19% upside ahead.
