Goldman Sachs Adds 5 Stocks to Its US Conviction List

On Monday, June 3, Goldman Sachs (NYSE: GS) updated its "US Conviction List - Director’s Cut," adding 5 new stocks: Edwards Lifesciences (NYSE: EW), Enphase Energy (NASDAQ: ENPH), Sempra Energy (NYSE: SRE), Teradyne (NYSE: TER), and Brixmor Property Group (NYSE: BRX).

Edwards Lifesciences (NYSE: EW) made the list due to its successful product transition and market expansion for its Transcatheter Aortic Valve Replacement (TAVR) product line. Goldman expects significant growth from treating a broader range of patients, including younger, asymptomatic ones. Analysts predict new products and an expanded market will boost sales and earnings per share (EPS) estimates by 2-8% above consensus in 2025-2027.

Enphase Energy (NASDAQ: ENPH) was added as Goldman foresees a revenue rebound, especially in California, with the ending of a previous inventory de-stocking cycle. Enphase's home battery segment is also set to benefit from changing residential electricity economics, making it more profitable to store electricity at home than sell it back to the grid.

Sempra Energy's (NYSE: SRE) inclusion is driven by growth prospects for its Texas utility, Oncor, benefiting from the state's business, infrastructure, and population expansion. Analysts also highlight the company's capital expenditure growth outlook and strong Liquified Natural Gas (LNG) pipeline.

Teradyne (NYSE: TER), a designer of automatic test equipment (ATE), is expected to see sales growth from depleted inventory levels and an upcoming positive earnings cycle. Goldman also expects earnings to benefit from a recovery in sales to a major client, new product initiatives, and a cyclical recovery in its Robots business.