Goldman Sachs identified several stocks with significant growth potential amid a broader market where many are priced to perfection. CNBC Pro examined Goldman Sachs’ research to spotlight five undervalued, buy-rated stocks: Workday, CrowdStrike, CAE, BJ’s Wholesale Club, and Ducommun.
CAE: The Canadian training and simulation provider for aviation personnel is viewed as significantly undervalued. Analyst Noah Poponak argued that CAE’s stock was unjustly affected by issues in its civil aviation and defense sectors. Despite this, the civil aviation segment’s growth and margin potential remain strong. Shares are down 17% this year, presenting a buying opportunity.
BJ’s Wholesale Club: BJ’s is experiencing robust growth, bolstered by strong membership trends and grocery category expansion. Analyst Kate McShane highlighted the firm’s notable top and bottom line earnings and aggressive market expansion. BJ’s shares have risen about 20% this year, with further growth anticipated.
Workday: The enterprise cloud management company is poised for substantial growth, driven by its strategy and product demand, according to analyst Kash Rangan. The company’s move to a $20 billion-plus business, especially in financial cloud services and human capital management, is well underway. Workday’s shares have risen nearly 25% in the past three months.
CrowdStrike: Analyst commentary and industry conversations suggest that CrowdStrike is on track to achieve over 20% revenue growth and 30% EPS growth in the next 12-24 months. Strategic initiatives and market positioning are crucial factors in regaining momentum after a period of strong industry leadership.
Ducommun: The aerospace and defense company is expected to benefit from increased OEM production and a strong aerospace aftermarket. Despite recent pressures in its defense business, recent orders and easier comparisons are likely to boost this segment.
Goldman Sachs’ analysis presents these five companies as undervalued opportunities with strong growth outlooks, despite the overall market trend towards stocks priced to perfection.
Original Story https://www.cnbc.com/2024/08/31/buy-these-five-undervalued-stocks-goldman-sachs-says.html
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