2 Stocks Goldman Sachs Says You’ll Want on Your Radar

We have officially entered 2025’s last quarter and the experts are now looking into their crystal balls to divine what lies ahead.

With the Nasdaq and S&P 500 having just closed out their strongest Q3 since 2020, Goldman Sachs’ Chief U.S. Equity Strategist David Kostin points out that under current conditions, the historical record shows that we can expect to see further gains in the coming year.

Laying out the bullish case, Kostin says, “With long-term interest rates relatively stable, earnings should remain the primary driver of equity upside going forward. Equity valuations are elevated relative to history but appear close to fair value based on the underlying macroeconomic and corporate fundamental backdrop. An accommodative Fed and an economy that accelerates into 2026 should allow the market to maintain its current multiple, leaving earnings growth to drive continued US equity gains… Further equity market upside would be consistent with the historical pattern around Fed cutting cycles.”

The stock analysts at Goldman are busy picking out the stocks that are primed for gains in a rising market – including these two that you’ll want to have on your radar screens. According to the data from TipRanks, both hold Buy ratings on the Street, and the Goldman analysts are predicting higher upside than the average. Here are the details.

GXO Logistics (GXO)

The first Goldman pick we’ll look at is the Connecticut-based logistics firm, GXO. This company provides a wide range of supply chain and warehousing services, including offering solutions to solve the myriad problems inherent in moving goods quickly and efficiently through today’s complex distribution systems.

GXO meets these challenges by applying technology to the seemingly mundane field of warehouse management. The company uses AI and machine learning processes to power intelligent automation systems, based on data-driven metrics, to make warehouses more efficient, more responsive to supply and demand, and safer for the workers. The company’s intelligent logistics is based on an AI-powered, cloud-native operating system, capable of coordinating the millions of actions required to manage inventory distribution and movement, order fulfillment and packing, shipping, and staffing.

In addition, GXO is an industry leader in the application of large-scale automation to the warehouse sector, deploying advanced robotic systems that work at high speed and large scale. The company can design and build warehouses that are planned from the start to employ customized automation to meet the needs of each individual customer. The advantages of GXO’s automation technology can be seen in the statistics: 80% reductions in staff training times; 60% reduction in wasted inventory; 50% reductions in variable costs and inventory inefficiency; and 10% improvements in order accuracy.

Logistics is vital in today’s world, and GXO’s services and technology have found applications in a wide range of fields. The company boasts customers in everything from aerospace to agribusiness, as well as the beauty and cosmetics; packaged goods; fashion and apparel; data center; food and beverage; and industrial and construction sectors – and that’s hardly a comprehensive list. GXO has more than 1,000 warehouse locations, active in 27 countries, and totaling approximately 200 million square feet of floor space. The $6 billion company employs ~150,000 people and generated $11.7 billion in revenue last year. GXO is the world’s largest pure-play logistics contractor.

In the past year, GXO has been reaping the benefits of its acquisition, in April 2024, of the British logistics firm Wincanton. The £762 million (approximately US$1 billion) deal brought Wincanton’s network into GXO’s business, and provided GXO with a strong foothold in the UK and Ireland.

In its 2Q25 results, GXO beat both the top and bottom lines. Looking at revenue, we see that the company’s $3.3 billion for the quarter represented a 16% year-over-year gain – and showed 6% organic growth, which was the highest jump in the last nine quarters. The quarterly revenue was also $199 million better than had been anticipated. At the bottom line, GXO reported a non-GAAP EPS of 57 cents. This was up 2 cents year-over-year, and was a penny better than the forecast. GXO also signed $307 million worth of new business during the second quarter, a 13% increase over 2Q24.

For Goldman analyst Patrick Creuset, the key point here is that GXO’s growth is speeding up. He notes that the company has significant strengths to power future growth, and writes, “GXO’s organic revenue growth post-pandemic (2023-25E) has averaged ~4% pa, significantly below the 8%-12% targeted by the company. However, we now believe that the company’s organic growth outlook is improving, in the near term based on contract wins and Wincanton revenue synergies, and in the medium-term based on advances in warehouse automation and robotics, likely leading to an acceleration in outsourcing.”

Creuset goes on to rate GXO shares as a Buy, with a $68 price target that implies a one-year upside potential of 28.5%. (To watch Creuset’s track record, click here.)

Overall, this stock has earned a Strong Buy consensus rating from Wall Street’s analysts, based on 15 recent reviews that include 13 Buys to 2 Holds. The shares are currently priced at $52.89 and their average price target, of $61.07, suggests that a 15.5% gain is in store for the coming year. (See GXO stock forecast.)

Dick’s Sporting Goods (DKS)

Next on our list of Goldman picks is Dick’s Sporting Goods, one of the US retail market’s largest sporting goods chains. The company has been in business since 1948, when it got its start as a small business, a fishing and tackle shop. Today, Dick’s offers a wide range of products: camping gear; outdoor clothing for men, women, and kids; tents and outdoor cooking equipment; and sporting gear of all sorts, including firearms and ammo; air rifles; rucksacks; hiking shoes; and – of course – fishing gear. Dick’s can offer its customers anything they need for outdoor activities, whether it’s a weeklong camping trip or an afternoon hike.

After 77 years in business, Dick’s can boast that it has adapted well to the modern retail scene. The company has matured into a $20 billion leader in niche retail and has a strong international footprint. Prominent among the chain’s product lines are its shoes – Dick’s offers a wide range of outdoor and sports shoes, and sells numerous popular brands, including Adidas, Nike, Hoka, and New Balance. In a move that will expand the company’s shoe retail segment, Dick’s announced in May of this year that it will be acquiring the retail chain Footlocker, and announced in September that the acquisition has been completed.

The Footlocker transaction was valued at $2.4 billion and brings the shoe retailer entirely under the Dick’s umbrella. Under the terms of the transaction, Footlocker’s shareholders could elect to receive $24 cash or 0.1168 shares of DKS for each share of Footlocker common stock.

The company’s last set of financial results covered fiscal quarter 2Q25, which ended on August 2, and the results were better than the Street had expected. The company’s top line in Q2 came to $3.65 billion, up 5% from the prior year and beating the forecast by $36.2 million. The bottom line, $4.38 per share by non-GAAP measures, was 8 cents per share better than the estimates. Dick’s finished the quarter with $1.23 billion in cash.

This stock is covered by Goldman’s retail expert Kate McShane, who sees plenty of potential in the Footlocker acquisition. Specifically, McShane believes that Dick’s reputation for strong customer service is a good match for Footlocker’s widespread network. She writes, “DKS is well-positioned to continue gaining market share given its differentiated product offering, improved in-store and online customer experience, and strength of its new concepts (i.e., House of Sport and Field House), along with the incremental share DKS is gaining through the acquisition of Foot Locker… While Foot Locker has been an underperforming asset with lackluster comps and deteriorating margins, we expect Dick’s management can improve FL’s top line meaningfully as it manages its brand portfolio to include higher brand heat products, improve the store layout, and instill Dick’s service levels which should help drive conversion.”

Putting her stance into quantifiable terms, McShane rates DKS as a Buy, with a $274 price target that indicates her confidence in a one-year gain of 23% for the stock. (To watch McShane’s track record, click here.)

This retail stalwart currently has a Moderate Buy consensus rating from the Street, based on 20 analyst ratings that break down to 11 Buys, 8 Holds, and 1 Sell. The stock is trading for $222.22, and its $242.89 average price target suggests an upside of 9% on the one-year horizon. (See DKS stock forecast.)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.