These Stocks Will Have Huge Rebounds In 2025, Says Goldman Sachs Analyst
2min read Goldman Sachs analysts have indicated that several underperformed stocks in 2024 may experience significant rebounds in 2025.
According to Goldman Sachs, some stocks that have struggled in 2024 could see substantial gains in the coming months. The last trading month of 2024 started on a positive note, further propelling the annual gains of the three major stock indices.
On Wednesday, the S&P 500 and the Nasdaq Composite reached new closing records, and the Dow Jones Industrial Average closed above 45,000 points for the first time. However, Goldman Sachs suggests that some lagging stocks this year may outperform the broader market in the first quarter of 2025. This trend has been observed in 13 out of the last 15 years since tracking began in 2002.
According to Goldman Sachs analyst Deep Mehta, the year-to-date relative index performance of those lagging stocks of 2024 is similar to 2023 (-39%) and below the long-term average of -27%. In terms of industry composition, He also noted stocks from the healthcare, industrials, technology, and consumer goods sectors have a significant presence, and from a factor perspective, these stocks tend to have slower financial returns and higher growth potential.
Considering the historical mixed performance of lagging stocks, Mehta has filtered this year's laggards to include those with varied analyst ratings. In other words, these are stocks with buy ratings that Goldman Sachs analysts believe are at odds with the majority of Wall Street analysts who are neutral or bearish. Here are some of the lagging stocks that Goldman Sachs is bullish on, diverging from the market consensus:
Conagra (CAG): Conagra's stock has recently plummeted, partly due to concerns in the processed food industry following President Trump's appointment of Robert F. Kennedy Jr. as the Secretary of Health and Human Services, who advocates for significant reforms at the Food and Drug Administration, including the dismantlement of the nutrition department. Goldman Sachs rates Conagra as a buy and anticipates a 30% increase in its stock price. However, the majority of analysts are neutral or hold a neutral stance, with 72% of analysts rating it as hold, only 17% as buy, and 11% as sell. Over the past month, Conagra's stock price has fallen by about 5%, and by approximately 15% over the past three months.
TripAdvisor (TRIP): Despite a nearly 3% increase in TripAdvisor's stock price in the last three months, the stock has declined by over 33% this year. Over the past month, TripAdvisor's stock price has fallen by more than 13%. Goldman Sachs aligns with 20% of analysts in giving it a buy rating, believing there is a 70% upside to its stock price. In contrast, 60% of analysts are neutral, and 20% have a sell rating.
Pool Corp (POOL): Pool Corporation is also among the stocks that Goldman Sachs is optimistic about recovering. Despite a recent rebound, the stock has still fallen by nearly 6% in 2024. Goldman Sachs sees a 20% upside to its stock price, based on a 12-month target price. Goldman Sachs maintains a positive view on Pool, believing in its stock price potential, and among 12 analysts, 33% rate it as buy, 50% as hold, and 17% as sell.
